Rare earth elements (also referred to as rare earth minerals, rare earth metals, green elements, rare earths or simply REEs) are comprised of 17 elements of the periodic table. The metals are often found combined together in ores and must be separated into its individual elements. On the supply side of the market, China is currently the largest producer of rare earth elements in the world, mining at least 90% of total world production. Consequently, many countries around the world rely on imports of these REEs to facilitate production of the various systems and products that are dependent on the rare earth metals as raw materials. With one supplier effectively monopolizing the rare earth industry, this imposes severe supply-chain risks to the producers of products that rely on rare earth minerals. After several actions that have restricted the supply, the United States, the European Union, and Japan have challenged China for violating provisions of its membership in the World Trade Organization. This paper will examine the rare earth industry, Chinas near-monopoly, global supply-chain risks, and strategies to reduce dependence on China, including the invocation of the WTOs dispute resolution process.
Distribution of Rare Earth Elements in the Rare Earth Minerals from Japan, Korea and North-Eastern China