Rare earths are the new oil

In 2026, a little-known group of minerals has replaced oil as the most powerful lever in the global economy.

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From oil power to mineral power

For decades, oil shaped geopolitics. Today, rare earth elements power electric vehicles, missiles, wind turbines, and advanced electronics.

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The January 6 turning point

On January 6, 2026, China tightened export controls on dual-use items bound for Japan, reshaping global supply chains overnight.

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Why rare earths matter so much

Dysprosium and terbium are essential for high-performance magnets used in EV motors, wind turbines, and defence systems.

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China’s supply chain dominance

China controls around 90–95% of global rare earth processing and nearly all heavy rare earth refining.

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Markets react instantly

Investors rushed for non-Chinese supply. Lynas Rare Earths surged over 14% in a single trading session.

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Japan’s deep-sea gamble

Japan is turning to the ocean floor, testing deep-sea mining near Minami Torishima to secure long-term rare earth supply.

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America’s strategic window

The US is shielding domestic producers with long-term defense contracts and price floors to reduce dependence on foreign supply.

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India’s patent-first approach

India is betting on innovation, targeting 1,000 mineral-related patents by 2030 through unconventional extraction methods.

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Supply chains are splitting

Global manufacturing is dividing into two systems: efficiency-driven and security-driven supply networks.

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From efficiency to sovereignty

Companies are abandoning just-in-time models in favor of stockpiling, long-term contracts, and upstream investments.

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The age of strategic minerals

Rare earths are no longer just a trade issue. They are now a core national security priority shaping the global economy.

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