National Resilience Score: 85/100 — High Resilience
Framed as: Dual-Use Implications for National Resilience
I. Civilian & Military Applications
Rare earth elements (REEs) are integral to numerous civilian and military technologies. In the civilian sector, REEs are essential in the production of electronics, electric vehicles (EVs), renewable energy systems, and medical devices. For instance, neodymium and dysprosium are critical in manufacturing high-strength permanent magnets used in wind turbines and EV motors. In the military domain, REEs are vital for advanced defense systems, including precision-guided munitions, radar systems, and communication equipment. The convergence of civilian and military needs often leads to competition for the same REE supply chains, potentially creating strategic vulnerabilities. Allied nations such as the United States, Australia, and Japan are actively developing domestic REE extraction and processing capabilities to reduce dependence on adversaries. China, however, maintains a dominant position, controlling approximately 70% of global REE mining and 85% of processing as of 2025, leveraging this control for geopolitical influence. (neoterra.partners)
II. Rare Earth & Critical Material Dependencies
The extraction and processing of rare earth elements (REEs) rely on several critical minerals, including neodymium, dysprosium, terbium, and praseodymium. These elements are predominantly sourced from countries like China, which, as of 2025, controls approximately 70% of global REE mining and 85% of processing. The United States, despite being the second-largest producer, lacks domestic refining facilities, leading to a reliance on imports for about 74% of its REE needs. (ndupress.ndu.edu) Recent geopolitical tensions have prompted the U.S. to invest in domestic REE capabilities, including a $35 million contract awarded to MP Materials to build a heavy rare earth separation facility in California. (defense.gov) If access to REE supply chains is disrupted, it could severely impact industries dependent on these materials, including defense and technology sectors. Substitution options are limited due to the unique properties of REEs, making it challenging to replace them with alternative materials.
III. Infrastructure Hardening Implications
The development of domestic rare earth extraction and processing capabilities can significantly enhance critical infrastructure resilience. By reducing dependence on foreign REE sources, nations can mitigate risks associated with supply chain disruptions, ensuring the continuous operation of essential services such as power grids, communication networks, and transportation systems. For example, the U.S. Department of Defense has invested over $439 million since 2020 to establish a domestic REE supply chain, aiming to support defense requirements by 2027. (defense.gov) However, the establishment of new REE processing facilities may introduce environmental and regulatory challenges, necessitating careful planning and investment to address potential vulnerabilities.
IV. Energy Resilience Assessment
The extraction and processing of rare earth elements (REEs) are energy-intensive processes, often requiring substantial electricity and chemical inputs. This centralization of energy dependency can pose challenges to energy resilience, especially if REE processing facilities are concentrated in specific regions. The role of REEs in the broader energy transition is significant, as they are essential in the production of renewable energy technologies such as wind turbines and electric vehicles. However, the energy demands of REE processing can impact grid stability, particularly during periods of high demand or disruption. To enhance energy resilience, integrating REE processing facilities with renewable energy sources and implementing energy-efficient technologies are crucial steps.
V. Key Findings & National Resilience Implications
The dual-use nature of rare earth extraction and processing technologies underscores their critical importance to both civilian and military sectors. The United States’ reliance on foreign REE sources, particularly China, poses significant strategic vulnerabilities, especially in defense and high-tech industries. Investments in domestic REE capabilities are essential to bolster national resilience, with a focus on developing a comprehensive ‘mine-to-magnet’ supply chain. However, this endeavor requires substantial infrastructure development, environmental considerations, and strategic planning to mitigate potential risks. Energy resilience is also a key factor, as REE processing is energy-intensive and can impact grid stability. Overall, achieving a balance between securing REE supply chains and maintaining energy resilience is vital for national security and economic stability.
This was visible months ago due to foresight analysis.
