Access to rare earth materials (REM) — lithium, cobalt, tungsten, nickel, and graphite — is key in the production of batteries, semiconductors, wind turbines, high-tech defense equipment, and medical devices. Geopolitical struggles for access to these materials dominate the world scene. China has about half of the world’s reserves of these elements; Ukraine’s deposits are estimated at around 5 percent but are located mostly in the east and south regions of the country, areas controlled or contested by Russia. China’s dominant position in the supply chain for these materials gives it significant global influence and leverage. It has shown a willingness to use this influence.
The vulnerability of advanced economies to the unequal distribution of REM has spurred investment in developing alternatives. Innovation in battery technologies is one example. Recycling is another strategy to reduce dependance on REM imports.
Europe has made “urban mining,” the process of extracting valuable materials from used electronics and buildings, a major approach to increase its resource independence and climate resilience. A 2024 European Union (EU) law, the Critical Raw Materials Act, aims to recapture 25 percent of these vital materials through recycling by 2030 — a big increase from the current one percent. A recent study estimates there are about 700 million unused smartphones in European homes. On average, there are 74 electronic devices in each home, 13 of which are unused and stashed away.