Fynsa
In a world driven by electrification, artificial intelligence and the energy transition, rareearth elements rare earth elements (REE) (REE) have become one of the most strategic assets of the 21st century. These 17 minerals, including neodymium, dysprosium, and terbium, are essential for the manufacture of chips, batteries, wind turbines, electric vehicles and defense systems, shaping the new technological heart of the 21st century.They form the new technological heart of the global economy.
However, their relevance goes far beyond the industry. Today, rare earths are at the epicenter of a geopolitical dispute. geopolitical dispute dispute that pits China against the West. Beijing controls approximately 69% of global extractionand 92% of chemical refining and almost 98% of permanent magnet production, a monopolya monopoly that spans the entire value chain, from the mine to advanced components. Simply put, China not only owns the reserves: it dominates the know-how, infrastructure and processing capacity that the rest of the world lost decades ago.
During 2025, this domain became an instrument of power. In April, the Chinese Chinese government imposed export controls on seven critical items, expanded in October to twelve metals and refining twelve metals and refining technologies. Exports fell by more than 30% year-on-yearaffecting key sectors such as automotive, aerospace and semiconductors.
The impact was not only economic: it highlighted the structural vulnerability of Western economies, which are dependent on a single supplier for key materials. In response, countries such as the United States and Australia have intensified their efforts to build independent supply chains. independent supply chainsled by companies such as MP Materials (USA), Lynas (Australia) and Iluka Resources (Australia).. However, replicating China's technical level in refining and magnets will require years of investment and development.
The true value of rare earths does not lie in their price - the total market is barely over USD 6.5 billion. USD 6.5 billion- but in its to generate or halt billions in industrial production.. A 10% disruption in supply could generate losses of close to USD 150 billion. USD 150 billionaffecting entire value chains. It is what analysts call an asymmetric riska small input that sustains giant industries.
The situation is reminiscent of the role of oil in the 20th century. But unlike crude oil, rare earths are not an energy resource, but a technological resource. a technological resourceindispensable for competitiveness and defense. Their control defines who will lead the next industrial revolution.
Conflict over critical minerals marks the end of an era of industrial complacency. Governments and companies have begun to treat the security of supply as a component of national securityby allocating subsidies and incentives to diversify the sourcing of key materials.
At the same time, efforts for recycling and technological substitution are growing. recycling and technological substitutionwhich now account for about a third of global supply. However, these solutions are still insufficient in the face of China's dominance and the speed with which global demand is expanding.
Rare earths have become the new oil new oil of the global economyRare earths have become the new oil of the global economy: a resource of low nominal value, but immense strategic impact. In 2025, more than ever, global competition for control of critical materials is defining not only the economy, but also the balance of power of the future.
Corredora de Bolsa Investment Team
