By Patience Chat Moses
As the future of energy and technology is being shaped, the growing geopolitical struggle for critical minerals also intensifies. The recent rivalry between the United States (US) and China is not just about trade tariffs or technological dominance; it increasingly concerns the very elements that power our modern world: rare earth metals. These essential minerals, vital for everything from smartphones and electric vehicles to advanced defence systems, have become a new battleground in the pursuit of global economic and technological dominance.
Despite their misleading name, rare earth elements (REEs) are not actually rare in terms of their abundance in the Earth’s crust. They are, however, seldom found in concentrated, economically viable deposits, and their extraction and processing are complex, energy-intensive, and environmentally challenging. There are 17 metallic elements classified as rare earths, characterised by their unique magnetic, luminescent, and electrochemical properties. They include Neodymium, Samarium, Yttrium, Europium, Terbium, Lanthanum, Cerium, etc. Beyond magnets, rare earths are critical for advanced radar systems, missile guidance, lasers, and other specialised military applications, making them a matter of national security.
This struggle for dominance over rare earth elements is intensifying due to several interconnected factors. First is China’s nearly exclusive control of processing. Although deposits are found worldwide, China handles over 90% of the global rare earth processing and refining capacity. The next concern is strategic vulnerability. For countries like the United States, heavy dependence on a single foreign source for materials vital to their high-tech industries and defence sectors presents a significant national security risk. Any disruption, whether caused by geopolitical tensions, natural disasters, or deliberate export restrictions, could severely impair vital manufacturing and defence capabilities.
Also, industry analysts have noted that China has long shown its willingness to use its dominance in rare earths as leverage. The 2010 halt of rare earth exports to Japan during a territorial dispute caused shockwaves worldwide, with prices soaring. More recently, in April 2025, China imposed new export restrictions on several heavy rare earth elements, requiring special licences for export. These measures, taken amid increased trade tensions, directly affect global industries reliant on these specific minerals and highlight Beijing’s strategic use of its control.
Lastly, the transition to clean energy, especially the rapid increase in electric vehicles and renewable sources such as wind power, is causing an unprecedented rise in demand for rare earth metals.
Nigeria’s Potential Role
Amid this global vulnerability and strategic rivalry, Nigeria could emerge as a compelling new contender. Long focused on its extensive oil and gas reserves, Nigeria boasts substantial, largely untapped, critical mineral resources, including rare earths. The nation is now prepared to harness its mineral wealth to diversify its economy and strategically position itself within the global supply chain for these essential elements.
A significant step forward in this area was the recent pledge by the Federal Government to boost rare metal production, highlighted by a landmark £400 million investment by Hasetins Commodities Limited. This investment is allocated for establishing what is expected to become Africa’s largest rare earth and critical minerals processing plant in Nasarawa State.
Nigeria’s venture into rare earth production and processing presents numerous opportunities, including diversifying global supply chains, encouraging economic diversification and growth, attracting further Foreign Direct Investment (FDI), advancing technology, and creating jobs.
Experts in the sector say that with sustainable mining practices, a robust regulatory framework, and infrastructure development, Nigeria’s mineral wealth, which has long been overlooked, could be on the verge of gaining global recognition. As the world navigates the complexities of rare earth supply and the urgent demands of the energy transition, Nigeria’s strategic investments in Nasarawa State offer a beacon of hope for a more diversified and resilient future.