Energy transition without rare earth elements is impossible. Rare earths are a group of chemical elements of great importance because they are used in the manufacturing of components for mobile phones, computers, nuclear reactors, lasers, rockets, and lithium batteries, among many other technological applications. Their potential lies in their magnetic, electrochemical, and luminescent properties, which make them essential for current and future technological development worldwide.
The race for their exploitation, extraction, and control has accelerated over the past two decades. This process is shaping up to be one of the major businesses of the first half of the 21st century. Contemporary global geopolitics is defined by the scramble for energy supplies, particularly in the post-fossil fuel era that is already underway. China is the world’s largest source of rare earths and metals and controls their reserves and technological applications.
World is structurally dependent on minerals and rare earth elements
Minerals are one of the primary pillars for industrial production. Due to the diversification of goods production – both traditional and those emerging from the current scientific and technological revolution – the consumption and depletion of minerals of all kinds have increased at a much faster pace than anticipated.
In today’s geopolitics, securing raw materials and energy sources is imperative and strategic, especially given the structural dependency on the industrial, aerospace, automotive, and maritime complexes of major powers. For example, while the United States consumes 26% of the world’s oil, it produces only 9%, and therefore relies on imports from Saudi Arabia, Canada, Latin America, and other members of the Organization of the Petroleum Exporting Countries (OPEC).
Studies from the Mineral Information Institute reveal that the U.S. is also far from self-sufficient when it comes to minerals. The U.S. depends entirely on imports for arsenic, columbium, graphite, manganese, mica, strontium, tantalum, and 99% of bauxite and alumina; 98% of gemstones; 95% of industrial diamonds and asbestos; 94% of tungsten; 91% of platinum group metals; 84% of tin; 79% of cobalt; 75% of chromium; 66% of nickel; 88% of fluorspar; 86% of tantalum; 82% of barite; 74% of potash; 62% of antimony; and 50% of cadmium.
Meanwhile, China leads global rare earth elements production, dominating at 68.5%. This is enabling the country to develop the mining, refining, and supply chain capabilities that bolster energy resources and expand its technological empire. In comparison, the U.S. currently accounts for 12.29% of rare earth production. It is followed by Myanmar at 10.86%, and Australia at 5.14%.
This data illustrates that the world has an undeniable structural dependency on China, given the necessity of these minerals for technology production in a world preparing for an energy transition. With control of 95% of the global supply, China holds a strategic advantage over the United States and the European Union. This dynamic compels efforts to minimize conflicts that could disrupt the mineral supplies upon which much of the world depends for its operations and development, and which will become increasingly important as the international community moves closer towards energy transition and technological change.
Latin America as an alternative
Latin America and the Caribbean hold nearly a third of the world’s reserves of copper, bauxite, and silver, and their territories contain 27% of coal, 24% of oil, 8% of gas, and 5% of uranium. Their strategic importance offers an alternative for powers vying for control of mineral and water resources.
Chile, Argentina, Peru, and Bolivia are home to the largest reserves of copper, lithium, and tin. Peru has emerged as a major mining country, boasting 40 different metals and ranking as the world’s third-largest producer of copper, zinc, and tin. It is also the top producer of silver and fifth of gold. In Latin America, Peru leads in gold, lead, silver, zinc, uranium, and tin production, and ranks second in copper after Chile.
Brazil is also advancing its exploration for rare earth elements. In Minas Gerais and Goiás, projects involving investments of nearly US$170 million have been announced by the mining firm Serra Verde. Through these initiatives, it aims to produce 5,000 tons annually of rare earth oxide, a crucial material for manufacturing magnets used in electric vehicle motors and wind turbine generators.
Brazil currently holds 21 million metric tons of rare earth reserves, second only to Vietnam, which has 22 million. China leads globally with 44 million tons. This positions Brazil as a key strategic alternative to meet demand and counter China’s current dominance, potentially driving new market dynamics outside the Asian axis and reducing dependency on minerals from this region.
The International Energy Agency (IEA) estimates that with Latin America’s participation in rare earth production, extraction could increase tenfold by 2030. Between 2017 and 2023, extraction grew by 85%. By 2040, it is expected to rise by an additional 80% due to the demand for magnets used in electric vehicles and wind energy technology.
Rare earth elements in Colombia
Colombia’s Orinoquia region, on the border with Venezuela, is rich in coltan and other materials. As such, the Canadian company Auxico Resources has begun purchasing land for rare earth exploitation, focusing particularly on the region’s Vichada department. The company mainly produces critical minerals and high-value metals essential for the energy transition.
However, unclear legal frameworks surrounding the company’s land acquisitions, combined with insufficient information about the social and environmental impacts on communities living near the mines, have raised concerns about the transparency of Auxico Resources’ operations. This has led local and national authorities to implement measures addressing the company’s presence and activities in the area.
Although Colombia is still in the exploratory and research phase regarding rare earths, government and scientific studies on coal deposits in central Colombia reveal indications of rare earth metals within this natural resource. These findings suggest significant economic potential for the future.
Metal-rich coal deposits, which have metal concentrations ten times higher than the global average, indicate the presence of elements such as lithium and gallium, along with some rare earths. The discovery of these elements could lead to the identification of additional resource-rich territories which could be requiring significant investment in extraction, refining, and value-added processing.
Unfortunately, many areas undergoing extractive processes remain under the control of illegal armed groups. This influences land-use dynamics, prevents effective state regulation, and makes it more difficult to ensure that large-scale mining efforts operate within environmentally, ethically, and socially sound frameworks.
In the midst of the rare earth and metal mining boom, echoes of colonialism resurface. With transnational capital securing vast tracts of mineral-rich territory, these dynamics pose significant challenges for Latin American states regarding mining governance, sovereignty, and the legitimate use of land.