From fighter jets to electric cars, rare earth elements are the invisible backbone of modern tech — and China controls the majority of the global supply.
Thing is, we’re not on the greatest of terms with the country at the moment. The good news is that traders on Kalshi think there’s a 45% chance President Donald Trump will make a new free trade agreement with China.
Until then, as tensions rise and supply chains strain, here are the most vital rare earths the U.S. depends on, what they do, and why they matter more than ever.
Dysprosium
Dysprosium is a linchpin in the defense and EV industries. It strengthens magnets so they can operate under extreme heat — vital for jet engines, electric vehicle motors, and precision-guided missiles. The U.S. military needs it for advanced weaponry, and EV makers rely on it for efficiency and durability. China controls nearly all global dysprosium output, making it one of the most strategically vulnerable elements in the supply chain.
Neodymium
If your tech moves or makes sound, odds are it needs neodymium. It powers the strongest permanent magnets on Earth — found in everything from wind turbines and EVs to smartphones and drones. The Department of Defense also uses it for actuators and radar systems. A disruption in supply would send shockwaves across both commercial tech and national security operations. And yes — most of it still comes from China.
Praseodymium
Praseodymium might not make headlines, but it’s the secret sauce that boosts neodymium’s magnet strength. This element helps power high-performance motors in electric vehicles and renewable energy tech. It also shows up in aircraft engines and some defense systems. With its demand climbing and China holding most of the cards, it’s a quiet but critical piece in the rare earth puzzle Washington is scrambling to secure.
Terbium
Terbium stabilizes magnets under high temperatures — making it essential for military radars, EV drive systems, and green energy turbines that need to withstand extreme conditions. It also glows green in low-energy lighting and display tech. But here’s the catch: terbium is incredibly rare and almost entirely mined and refined in China. That makes it a pressure point in any future supply chain showdown.
Lanthanum
Lanthanum does a little bit of everything. It’s used in camera lenses, EV batteries, and catalytic converters that clean car emissions. It also plays a role in refining oil, giving it downstream importance in energy production. It may not sound glamorous, but it’s foundational — and its absence would ripple through industries that keep both consumers and the military moving. And again, China leads the global supply.
Yttrium
Yttrium is vital in defense: it’s used in targeting systems, laser rangefinders, and ceramic coatings that help jet engines survive extreme heat. It also plays a role in superconductors and radiation therapies. Its performance under stress makes it perfect for high-stakes military and medical applications. Like most rare earths, China dominates the yttrium market, giving it serious geopolitical leverage over America’s most sensitive tech.
