Azernews.Az

By Alimat Aliyeva

Industrial powerhouses Germany and South Korea are facing a precarious situation as the United States and Japan move rapidly to dominate the global rare earth element market, AzerNEWS reports.

According to analysts, while Washington and Tokyo are quickly securing available global stocks, European and Korean manufacturers are left without guaranteed access to the critical raw materials needed for the automotive and defense industries.

The challenge intensified after China, the world’s largest producer, imposed stricter export controls. In response, the US and Japan have secured long-term exclusive contracts with a small number of Western suppliers, including MP Materials and Lynas Rare Earths, effectively locking in the majority of production outside China for years to come.

For Germany and South Korea, this creates a direct threat of shortages for the production of electric vehicles, high-tech electronics, and defense equipment. Meanwhile, Australian mining companies, backed by their government, are attempting to build a new market independent of China. Experts warn, however, that without swift strategic moves by Berlin and Seoul, their industries could face a severe resource crunch.

Interestingly, this race highlights how rare earth elements—once considered obscure raw materials—have become a central pivot in global technological and geopolitical power, underscoring the fragile balance between supply chains and national security.