Rare earth metals are often misunderstood as “rare”. They are neither scarce nor exotic. They are a group of 17 chemically similar elements including the lanthanides, scandium and yttrium that occur abundantly in the Earth’s crust but are difficult to extract in economically viable forms. These elements are typically divided into “light” and “heavy” rare earths, with the latter being harder to mine yet far more critical for high-tech and defense applications. In the 21st century, they have become the backbone of advanced industrial systems, underpinning technologies ranging from smartphones and electric vehicles to stealth aircraft, hypersonic missiles and quantum communication devices. Their unique magnetic, phosphorescent and electrochemical properties make them irreplaceable. This fact has catapulted them to the center of global strategic competition.
The rising hype around rare earths is not an accident. As major powers intensify investments in Artificial Intelligence, space exploration, 5G infrastructure and advanced military hardware demand for these elements has surged dramatically. Various such metals are used for military purposes. Neodymium and praseodymium enable powerful permanent magnets used in fighter jets, drones and naval radars, terbium and dysprosium improve missile guidance systems, yttrium and lanthanum enhance night-vision goggles, while samarium-cobalt magnets serve in nuclear submarines due to their ability to withstand extreme temperatures. From energy transition technologies to the world’s most sensitive sensors, rare earths lie at the heart of modern military industrial complexes. However, this deep strategic dependence explains why the United States, China, Russia and other major actors are scrambling to secure access and control over global rare earth supply chains.
The true power of rare earths lies not merely in their applications but in the fragility of their production process. Extracting these minerals is a complicated, costly and environmentally hazardous undertaking. Rare earth ores often contain radioactive elements like thorium making safe extraction technically demanding. Once mined, the ore must undergo crushing, chemical treatment, repeated solvent extraction and high temperature purification steps that require sophisticated refining capability, massive energy consumption and advanced industrial regulation. This multi stage process is so difficult and so expensive that only a handful of countries possess the infrastructure and technical expertise to handle it. As a result, the world is not just dependent on rare earth deposits but it is dependent on rare earth processing as well.
This is where the geopolitical stakes become evident. China today controls around 60% of global rare earth mining, but more critically, over 85% of global processing and separation capacity. Beijing’s early investment in rare earth refining allowed it to establish a near monopoly over the most difficult and expensive stage of the supply chain. This has given China not only economic dominance but formidable strategic leverage. Beijing’s brief halt of rare earth exports to Japan in 2010, over a maritime dispute, was a wake up call to Western capitals. It signaled that those rare earths could be used as geopolitical tools, capable of coercion without firing a single shot.
For the United States, the realization of its vulnerability has been sobering. Despite being a global military superpower, US imports the vast majority of its rare earth metals and almost all of its rare earth processed materials from China. This dependence is particularly troubling because these elements form the backbone of the Pentagon’s most advanced weapons platforms. Recognizing the strategic risk, US is now attempting to rebuild its rare earth supply chain through revival of old mines such as Mountain Pass in California, investment in domestic refining capacity and forging supply partnerships with Australia, Japan, and European allies. Yet these efforts remain in early stages and experts warn that reducing dependence on China may take a decade or more.
Russia is also a part of the race, though through a different lens. The conflict in Ukraine has overshadowed another geopolitical dimension, Ukraine holds significant reserves of rare earth elements and other critical minerals. For Moscow, securing access to these resources enhances long-term strategic autonomy and diversifies its export base, particularly as Western sanctions restrict its traditional energy markets. Rare earths thus intersect with regional conflicts, expanding their relevance beyond economics and into strategic territorial ambition.
Amid this global race, Pakistan emerges as a country with significant yet underexplored rare earth potential. Geological surveys estimate Pakistan’s total mineral wealth at over $6 trillion, spanning copper, gold, coal, chromite, marble and extensive salt deposits. Critically, rare earth metals and strategic minerals, including lithium, cobalt, nickel, and light rare earth elements have been detected across multiple regions.
Recent surveys by the Geological Survey of Pakistan (GSP), often in joint collaboration with China, indicate the presence of rare earth-bearing minerals in:
- Gilgit-Baltistan (Skardu–Chilas corridor)
- Azad Kashmir (Neelam Valley)
- Khyber Pakhtunkhwa (Tarbela, Swat, Buner)
- Punjab’s Potohar Plateau, which hosts monazite-rich placer deposits
- Balochistan’s Chagai and Makran coast, holding rare earth elements (REE)-bearing sands and igneous bodies
- Sindh’s Thar coal region, where REE extraction from coal ash is under assessment
According to Commerce Minister Jam Kamal, over 95% of Pakistan’s mineral wealth remains unexplored, with REEs now elevated to the national strategic agenda. The Pakistan Mineral Investment Forum (8–9 April 2025) attracted attention from the United States, China, Saudi Arabia and European partners signaling growing global interest. However, despite its resource potential, Pakistan has historically underutilized its mineral sector. Weak governance, inconsistent policy frameworks, technological gaps and absence of investment have kept Pakistan dependent on raw mineral exports. The National Mineral Policy (last updated in 2013) urgently requires revision, particularly with a dedicated REE strategy.
Notwithstanding, Pakistan’s mineral wealth offers a unique strategic advantage. Its geographic location at the pivot of South Asia, the Middle East and Central Asia makes it a natural corridor for mineral trade and processing. Infrastructure expansion under CPEC provides a rare opportunity to integrate mining with transport, export and industrial zones.
At the same time, Pakistan’s rare earth resources are becoming increasingly important in foreign policy. As the United States seeks to diversify global supply chains away from China, the US has signaled openness to deeper critical minerals cooperation with Pakistan. The ongoing US-Pakistan tariff relief discussions are now tied to collaboration on minerals, a development that highlights Pakistan’s growing relevance.
Simultaneously, China, already the world’s largest REE processor and Pakistan’s strategic partner, offers technological capacity, investment and operational experience unmatched by any other major power. Therefore, navigating these competing interests requires a calibrated, state led approach. The National Security Committee (NSC) should oversee the strategic direction of Pakistan’s critical minerals sector to ensure sovereignty, protect national interests and negotiate. Pakistan must avoid becoming entangled in the new “Great Game” over rare earths. Instead, Pakistan should position itself as a neutral, development-oriented partner for all powers.
Pakistan’s mineral wealth, especially rare earth metals represents one of the greatest untapped opportunities for economic growth and global relevance. By adopting a transparent, well-governed and geopolitically balanced approach, Pakistan can transform these resources into engines of national development. In this era where minerals are reshaping global power, Pakistan must not choose sides, it must choose progress. Through steady diplomacy and a focus on national interest, Pakistan can emerge not as a pawn in global rivalry but a pivotal, resource rich state shaping its own destiny.
