What it is
Rare earth elements (REEs) are a set of 17 chemical elements in the periodic table, specifically the 15 lanthanides plus scandium and yttrium. Despite their name, most REEs are not particularly rare in the Earth's crust, but they are rarely found in economically exploitable concentrations. They possess unique magnetic, catalytic, and optical properties, making them indispensable components in modern technology.
REEs are vital for manufacturing components like magnets in electric vehicles, wind turbines, and hard drives, as well as catalysts in oil refining and phosphors in displays. China dominates global REE production and processing, leading to concerns about supply chain vulnerabilities and potential leverage in trade disputes. This concentration can affect prices and availability, particularly during geopolitical tensions or trade-war scenarios.
Why it matters
REEs are critical inputs for many industries; supply disruptions or trade restrictions can impact product costs and availability for consumers.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice