Istanbul
Strategic minerals and rare earth elements (REEs)听play听a crucial role听in听modern technology, essential across various sectors from consumer electronics to defense.听These elements are听indispensable for smartphones, where听they enable touchscreens (indium), battery performance (lithium, cobalt), and audio functionalities (gadolinium for microphones, neodymium for vibration).听Their significance extends to critical听industries such as medicine and defense, [1] highlightin驳听the听strategic importance of REE mining.
As of 2023, China dominated [2]听global听REE production, accounting for nearly 70% (68.6%), while听the听USA followed with 12.3%, representing a substantial but smaller share compared to China.
- Geopolitical competition
罢辞诲补测,听the听competition over strategic minerals mirrors past rivalries over听the听control of energy resources. Unlike听the听oil-centric conflicts of听the听辫补蝉迟,听the听demand 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.听The听concentration of听these resources听in听a few countries, coupled with thin听markets vulnerable to price volatility and strategic manipulation, raises concerns akin听to Cold War [3] resource politics.
The听strategic minerals sector has become听the听濒补迟别蝉迟听battleground听in听the听US-China tech rivalry. Critical minerals such as lithium, cobalt, graphite, and Rare Earth elements are pivotal to听the听clean energy transition. Notably, Rare Earth elements, where China dominates with significant reserves and nearly 90% of听global听processing capacity, [4] present a key leverage point for China over听the听US. This disparity poses challenges for听the听US as it navigates this geopolitical contest.
While US politicians frequently discuss decoupling from China's supply chains,听the听reality is that China holds a disproportionately high share of critical mineral processing capabilities. For听instance,听in听graphite, Chinese companies control approximately 80% of this capacity.听In听the听event of a potential conflict听involvin驳听the听US and China, supply chains dominated by a single source would face significant disruption challenges.
Therefore, expert reports recommended听the听diversification of supply chains. However, this task is daunting as China has steadily strengthened its advantages over decades.听In听rare earth minerals, China has solidified its position over 20 years via aggressive and sustained听investments听in听numerous听global听mining sites. China's strategy aims to maintain听these advantages, leveraging its strong position against听the听US and its allies, and posing considerable risks of disruption if听the听US is serious about decoupling from Chinese supply chains.
- Gulf countries venture听into听the听REE sector
Recently, Saudi Arabia and听the听United Arab Emirates have ventured [5] strategically听into听the听sector of strategic minerals primarily to diversify听their 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 are听investing heavily听in听acquiring stakes听in听global听mining operations and forming partnerships with key mineral-rich countries like Zambia, Brazil, and Pakistan.听These听initiatives 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,听the听entry of Saudi Arabia and听the听UAE听into听the听global听race for strategic minerals is welcomed as a means to counterbalance China's dominant position听in听mineral refining.听The听United States sees听these Gulf countries as potential allies听in听efforts to diversify and secure听global听mineral supply chains, reducing dependency on Chinese dominance.
- Enter T眉rkiye
T眉rkiye is also making strides听in听this sector. Turkish Minister of Energy and Natural Resources Alparslan Bayraktar's meeting with Chinese Minister of Natural Resources Wang Guanghua听in听Beijing on May 21, 2024, underscored [6]听new听avenues for bilateral cooperation, particularly听in听natural resources, mining, and听the听realm of critical minerals and rare earth elements.
Critical minerals and rare earth elements are pivotal for technological advancements听in听various sectors. T眉rkiye's Eti Maden has identified significant REE deposits near听the听Beylikova district of Eskisehir, potentially enabling local production of advanced technologies without heavy reliance on imports. Ministry of Energy sources听indicate [7] that Beylikova hosts听the听world's second-largest single REE deposit, boasting 694 million tons of raw capacity, with 17 REEs found, 10 of which are processable.
Back听in听April 2023, President Recep Tayyip Erdogan听inaugurated T眉rkiye's first pilot REE plant听in听Beylikova focusing on barite and fluorite production.听The听site also holds thorium deposits, offering alternatives for nuclear听power, and magnesite used听in听defense applications.
In听conclusion,听the听global听competition for rare earth elements and strategic minerals has evolved听into a critical arena of geopolitical maneuvering and economic strategy. China's dominant position听in听both production and processing capacity poses significant challenges for countries seeking to diversify supply chains and reduce dependency.听The听entry of Gulf countries like Saudi Arabia and听the听UAE听into听the听sector marks a strategic shift aimed at reshufflin驳听the听cards听in听this sector.听The听US rather looks favorably on听these听new听players, who are chipping away at China's dominant positions.
T眉rkiye's advancements听in听rare earth elements underscore its proactive stance听in听harnessing domestic resources for technological self-sufficiency. T眉rkiye's collaboration with听global听leaders like China and听the听US, pivotal听players听in听this competitive field, is imperative for acquiring essential processing technologies.听The听discovery of substantial rare earth deposits听in听Eskisehir not only positions T眉rkiye to bolster its technological capabilities but also presents a pivotal opportunity to lead听in听critical technological domains.
This moment calls for T眉rkiye to accelerate its efforts, forge robust partnerships, and听invest significantly听in听developing its rare earth processing capabilities to solidify its role as a key听player听in听the听global听strategic 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 expressed听in听this article are听the听author鈥檚 own and do not necessarily reflect听the听editorial policy of Anadolu.
By Dr. Tarek Cherkaoui
-The听author is manager of听the听Istanbul-based TRT World Research Center and author of听The听News Media at War:听The听Clash of Western and Arab Networks听in听the听Middle East. Cherkaoui is an expert听in听strategic communications.