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Strategic minerals and rare earth elements (REEs)ÌýplayÌýa crucial roleÌýinÌýmodern technology, essential across various sectors from consumer electronics to defense.ÌýThese elements areÌýindispensable for smartphones, whereÌýthey enable touchscreens (indium), battery performance (lithium, cobalt), and audio functionalities (gadolinium for microphones, neodymium for vibration).ÌýTheir significance extends to criticalÌýindustries such as medicine and defense, [1] highlightin²µÌýtheÌýstrategic importance of REE mining.
As of 2023, China dominated [2]ÌýglobalÌýREE production, accounting for nearly 70% (68.6%), whileÌýtheÌýUSA followed with 12.3%, representing a substantial but smaller share compared to China.
- Geopolitical competition
°Õ´Ç»å²¹²â,ÌýtheÌýcompetition over strategic minerals mirrors past rivalries overÌýtheÌýcontrol of energy resources. UnlikeÌýtheÌýoil-centric conflicts ofÌýtheÌý±è²¹²õ³Ù,ÌýtheÌýdemand for minerals like lithium, cobalt, and rare-earth elements stems not just from energy needs but also from technological advancements crucial for modern economies and militaries.ÌýTheÌýconcentration ofÌýthese resourcesÌýinÌýa few countries, coupled with thinÌýmarkets vulnerable to price volatility and strategic manipulation, raises concerns akinÌýto Cold War [3] resource politics.
TheÌýstrategic minerals sector has becomeÌýtheÌý±ô²¹³Ù±ð²õ³ÙÌýbattlegroundÌýinÌýtheÌýUS-China tech rivalry. Critical minerals such as lithium, cobalt, graphite, and Rare Earth elements are pivotal toÌýtheÌýclean energy transition. Notably, Rare Earth elements, where China dominates with significant reserves and nearly 90% ofÌýglobalÌýprocessing capacity, [4] present a key leverage point for China overÌýtheÌýUS. This disparity poses challenges forÌýtheÌýUS as it navigates this geopolitical contest.
While US politicians frequently discuss decoupling from China's supply chains,ÌýtheÌýreality is that China holds a disproportionately high share of critical mineral processing capabilities. ForÌýinstance,ÌýinÌýgraphite, Chinese companies control approximately 80% of this capacity.ÌýInÌýtheÌýevent of a potential conflictÌýinvolvin²µÌýtheÌýUS and China, supply chains dominated by a single source would face significant disruption challenges.
Therefore, expert reports recommendedÌýtheÌýdiversification of supply chains. However, this task is daunting as China has steadily strengthened its advantages over decades.ÌýInÌýrare earth minerals, China has solidified its position over 20 years via aggressive and sustainedÌýinvestmentsÌýinÌýnumerousÌýglobalÌýmining sites. China's strategy aims to maintainÌýthese advantages, leveraging its strong position againstÌýtheÌýUS and its allies, and posing considerable risks of disruption ifÌýtheÌýUS is serious about decoupling from Chinese supply chains.
- Gulf countries ventureÌýintoÌýtheÌýREE sector
Recently, Saudi Arabia andÌýtheÌýUnited Arab Emirates have ventured [5] strategicallyÌýintoÌýtheÌýsector of strategic minerals primarily to diversifyÌýtheir economies away from dependency on hydrocarbon exports. This shift is part of broader economic diversification plans, such as Saudi Arabia's Vision 2030, aimed at reducing reliance on oil revenues. Both countries areÌýinvesting heavilyÌýinÌýacquiring stakesÌýinÌýglobalÌýmining operations and forming partnerships with key mineral-rich countries like Zambia, Brazil, and Pakistan.ÌýTheseÌýinitiatives not only aim to secure access to critical minerals essential for technologies like electric vehicles and defense systems but also serve significant geopolitical objectives.
From Washington's perspective,ÌýtheÌýentry of Saudi Arabia andÌýtheÌýUAEÌýintoÌýtheÌýglobalÌýrace for strategic minerals is welcomed as a means to counterbalance China's dominant positionÌýinÌýmineral refining.ÌýTheÌýUnited States seesÌýthese Gulf countries as potential alliesÌýinÌýefforts to diversify and secureÌýglobalÌýmineral supply chains, reducing dependency on Chinese dominance.
- Enter Türkiye
Türkiye is also making stridesÌýinÌýthis sector. Turkish Minister of Energy and Natural Resources Alparslan Bayraktar's meeting with Chinese Minister of Natural Resources Wang GuanghuaÌýinÌýBeijing on May 21, 2024, underscored [6]ÌýnewÌýavenues for bilateral cooperation, particularlyÌýinÌýnatural resources, mining, andÌýtheÌýrealm of critical minerals and rare earth elements.
Critical minerals and rare earth elements are pivotal for technological advancementsÌýinÌývarious sectors. Türkiye's Eti Maden has identified significant REE deposits nearÌýtheÌýBeylikova district of Eskisehir, potentially enabling local production of advanced technologies without heavy reliance on imports. Ministry of Energy sourcesÌýindicate [7] that Beylikova hostsÌýtheÌýworld's second-largest single REE deposit, boasting 694 million tons of raw capacity, with 17 REEs found, 10 of which are processable.
BackÌýinÌýApril 2023, President Recep Tayyip ErdoganÌýinaugurated Türkiye's first pilot REE plantÌýinÌýBeylikova focusing on barite and fluorite production.ÌýTheÌýsite also holds thorium deposits, offering alternatives for nuclearÌýpower, and magnesite usedÌýinÌýdefense applications.
InÌýconclusion,ÌýtheÌýglobalÌýcompetition for rare earth elements and strategic minerals has evolvedÌýinto a critical arena of geopolitical maneuvering and economic strategy. China's dominant positionÌýinÌýboth production and processing capacity poses significant challenges for countries seeking to diversify supply chains and reduce dependency.ÌýTheÌýentry of Gulf countries like Saudi Arabia andÌýtheÌýUAEÌýintoÌýtheÌýsector marks a strategic shift aimed at reshufflin²µÌýtheÌýcardsÌýinÌýthis sector.ÌýTheÌýUS rather looks favorably onÌýtheseÌýnewÌýplayers, who are chipping away at China's dominant positions.
Türkiye's advancementsÌýinÌýrare earth elements underscore its proactive stanceÌýinÌýharnessing domestic resources for technological self-sufficiency. Türkiye's collaboration withÌýglobalÌýleaders like China andÌýtheÌýUS, pivotalÌýplayersÌýinÌýthis competitive field, is imperative for acquiring essential processing technologies.ÌýTheÌýdiscovery of substantial rare earth depositsÌýinÌýEskisehir not only positions Türkiye to bolster its technological capabilities but also presents a pivotal opportunity to leadÌýinÌýcritical technological domains.
This moment calls for Türkiye to accelerate its efforts, forge robust partnerships, andÌýinvest significantlyÌýinÌýdeveloping its rare earth processing capabilities to solidify its role as a keyÌýplayerÌýinÌýtheÌýglobalÌýstrategic minerals market.
[1] https://carnegieendowment.org/research/2024/02/the-us-military-and-nato-face-serious-risks-of-mineral-shortages?lang=en
[2] https://www.reuters.com/markets/commodities/chinas-rare-earths-dominance-focus-after-mineral-export-curbs-2023-07-05/
[3] https://foreignpolicy.com/2022/11/22/critical-minerals-resources-us-china-competition-cold-war-supply-chains/
[4] https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf
[5] https://foreignpolicy.com/2024/03/21/saudi-arabia-uae-critical-mineral-energy-transition/
[6] /en/asia-pacific/turkiye-china-ink-mou-on-energy-transition/3225969
[7] /en/energy/turkey/turkiye-uncovers-worlds-second-largest-rare-earth-element-reserve/35729
*Opinions expressedÌýinÌýthis article areÌýtheÌýauthor’s own and do not necessarily reflectÌýtheÌýeditorial policy of Anadolu.
By Dr. Tarek Cherkaoui
-TheÌýauthor is manager ofÌýtheÌýIstanbul-based TRT World Research Center and author ofÌýTheÌýNews Media at War:ÌýTheÌýClash of Western and Arab NetworksÌýinÌýtheÌýMiddle East. Cherkaoui is an expertÌýinÌýstrategic communications.