Rare Earths Trade refers to the market and exchange of rare earth elements (REEs), which are a group of 17 chemically similar metallic elements found in the Earth’s crust. These elements are essential for various high-tech applications, including electronics, renewable energy technologies, defense systems, and advanced manufacturing. The trade involves the extraction, processing, and distribution of rare earth materials from production sites to consumers and manufacturers globally. The rarity of these elements, coupled with the dominance of specific countries in their production (notably China), creates a complex trade environment influenced by geopolitical factors, supply chain dynamics, pricing fluctuations, and environmental considerations. The Rare Earths Trade is critical for the advancement of modern technologies, making it a focal point of economic and strategic interest.
Trump's proposal focuses on exchanging critical rare earth metals for increased U.S. aid to Ukraine. Ukraine holds about 5% of the world's mineral resources, essential for technology sectors like smartphones…