
Decreasing rare earths dependency: how the Five Eyes alliance can minimise rare earth trading risk with China
Think tank: The Henry Jackson Society
Author(s): Dr Helena Ivanov
July 30, 2024
This report from UK think tank the Henry Jackson Society explores strategies for Five Eyes Alliance countries to diversify away from China for the importing of rare earth elements.
This report explores strategies for Five Eyes Alliance countries (the United Kingdom, the United States, Canada, Australia and New Zealand) to diversify away from China for the importing of rare earth elements (REEs).
Our research highlights China’s exploitation of its market dominance, emphasising the risks of relying on adversarial states for critical resources. We examine the measures that Five Eyes Alliance countries have taken to reduce this dependency, and present public opinion research among voters in Five Eyes Alliance nations which shows that the public values a secure supply of REEs-dependent goods and services; that there is strong public support for the diversification of REEs supply, particularly towards other Five Eyes Alliance nations; and that greater Five Eyes collaboration and incentives are strongly supported.
Based on these findings, we propose two key policies: broadening the scope of the Five Eyes Alliance to include increased trade and cooperation on REEs and REEs-dependent goods and services, and actively seeking alternative sources, whether through new import sources or substitutes for REEs.