That laptop from 2015 collecting dust in your attic might play a significant role in shaping the rare earth battle, where the global powers scramble to secure the essential minerals.
Rare Earth Elements (REEs) include a total of 17 elements, such as neodymium, dysprosium, europium, and terbium, and these elements are vital for manufacturing EVs, wind turbines, and semiconductors. According to the U.S. Geological Survey (2025), China holds a monopoly on these minerals as it controls almost 80% of the global supply chain. In recent years, China has used export curbs and sanctions as an effective means to fight the international trade wars. And everything indicates that the REEs can be weaponized in the future.
These rare elements are economically and logistically challenging to extract and refine due to their high dispersion, as they do not cluster, which makes extraction difficult and a low-profit-margin business. Historically speaking, Rare Earth Minerals is not usually a lucrative sector with just a 7-9% CAGR; however, China’s stance against the new tariff laws may help the U.S. rethink its decision.
Geo-political timeline of Rare Earth Elements
China tried to weaponize the REEs in the past, and it could try the same in the coming months to respond to the trade wars. It already happened on multiple occasions when China restricted the supply of REE exports to Japan in 2010 and the U.S. in 2024. According to the Washington Post, the U.S. imports 90% of the REE from China as of 2025, and even a 10% restriction could strongly affect the EV and defense sectors. With the booming tariff tensions and trade wars, global superpowers are struggling to secure the key resources as they aim to diversify and localize the extraction and production of rare earth elements. China holds 38% of the REE reserves, but it controls more than 80% of the total supply chain, indicating its stronghold on this very integral sector that could shape the future well.
Rare Earth Mineral reserves
Fortunately, there is another way to overcome the shortage – recycling. In addition to cans, bottles, plastic, and newspaper, the new generation of recyclers is attempting to find innovative ways to collect and process electronic waste. The computers, Televisions, home appliances, medical devices, and similar electronic items that have stopped working or are simply sitting idle in our storage because we moved on to better versions of those electronics contribute to this e-waste being pushed for recycling.
The metals extracted from the e-waste are not limited to gold, silver, aluminum, and cobalt. Recyclers have started to pull out even the rare-earth elements, including neodymium, praseodymium, terbium, and dysprosium. These metals are vital in manufacturing everything from fighter jets to power tools.
However, the U.S. still lags, like most countries, due to a lack of Federal laws against E-Waste and subsidies for businesses that extract rare elements by recycling. The lack of awareness even plays a significant role. Though new generation recyclers are coming up with workable and practical ideas, they are low in number. According to Harris Poll (2024, November), for instance, 42% of Gen Z and 39% of Millennials are clueless about what to and not to recycle.
In addition, the U.S. electronics manufacturers strongly lobbied against the right to repair laws, which would extend the life of the device and reduce waste. As a result, the U.S. recycles only ~15% of its e-waste, compared to 70% of Europe. Billions of dollars in recoverable materials are dumped in developing nations such as Vietnam, India, and even China as e-waste, where it is recycled and reused. Basel Action Network (BAN) estimates 80% of e-waste is exported every year, with China being the single most crucial exporter, and they are directed via Hong Kong. Recycling electronic waste typically costs between $400 and $800 per ton, while the exported e-waste costs around $100 to $250 per ton, strongly supported by the shipping cost of $35 per ton.
One of my favorite terms when reading about E-waste is “geopolitical treasure”; it couldn’t be further from the truth.
Identifying the key players in the U.S. market is integral, and they follow these three rules.
Recycling companies must not export E-waste to developing countries
They must follow the environmental and data protection standards set by the regulators
They offer transparent supply chain details.
The options include certified recyclers such as e-Stewards and SERI, Retail and Manufacturer Take-Back Programs, and local government-organized NYC’s SAFE Disposal Events and LA’s S.A.F.E. Centers.
With these rules and more awareness, domestic recycling might help the U.S. build a strategic hedge against global supply shocks and geopolitical disruptions.
