As the world looks to diversify its risks by depending on one country especially in technology hardware, the biggest issue to resolve is the rare earth mineral supply. As per data it is estimated to have a global market value of $5.5Bn. Though comparing it to other minerals market size it is not big but they are elements that are critical to everything we use. And not so surprisingly China has 61% of this market and this becomes the biggest hurdle to cross.
That is why the present state of the supply chain is next to impossible to change in a short time. And being aware of that, China has already put restrictions on the export of Gallium and other minerals. This action is looked at as a reply to the USA restricting its AI Chip exports to China.
For now, the physical availability has been maintained but as we enter next year the supply of certain minerals will start to get tightened. This would result in price rises if events that no corporation worried about for decades.
Such a shake-up has led to various countries like India. Japan, South Korea and Australia are to take their policy actions so that some levels of supply might be assured just in case China pulls the plug or gets sanctioned someday.
This level of focus on these minerals would support a new cycle of investments and even new players that might result in the growth acceleration of this category over the medium to long term.