Global race for minerals will define new power equations

In the tariff war with the US, China has put export controls on rare earths. In anticipation of such controls, President Donald Trump has been sharply focused on access and supply of mineral resources as part of his plan to reinforce economic security of the US.

- PRANJAL SHARMA

The hunger for rare earths and critical minerals is shaping global geopolitical developments. The control and access to minerals will define power equations for the next few decades. Countries with ready and affordable access to these minerals will strengthen their economies. Supply control of such minerals will underpin an economy's technological prowess.

The scramble for natural resources has been occurring for ages. Western powers have scrambled to control supply of oil, gas and minerals for centuries. In the current era, however, countries from Asia are competing with the West for critical minerals.

The US, UAE and India are among the countries that are eagerly securing mineral supplies for their economies. China has somewhat of a head start with its investments in the African continent over the last few decades. In the tariff war with the US, China has put export controls on rare earths. Seven categories of medium and heavy rare earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items, will be placed on an export control list, the Chinese government has said.

In anticipation of such controls, President Donald Trump has been sharply focused on access and supply of mineral resources as part of his plan to reinforce economic security of the US. His statements on a mineral deal with Ukraine are clear. So is the intention to utilize the minerals in Greenland and the Arctic. The US is keen to ensure that it does not remain dependent on China for such minerals. The US also wants to counter the influence of China in global supply chains since Beijing has strong pacts in the African continent for mineral access.

Western powers are increasingly concerned as China dominates the rare earth elements market, accounting for 70% of global production. The world is looking for a rebalancing where the rare earth market is not monopolized by a few powers.