Global Data Pod Global Data Pod: Rare Earths
Feb 26, 2026
Jahangir Aziz, Co-Head of Economic Research at J.P. Morgan Global Research, offers expert analysis on rare earths and policy. He discusses why tiny amounts of rare earths are vital across electrification, defense, and electronics. He explains that processing, not mining, is the main supply-chain choke point. He outlines policy options like allied partnerships and a government-set playbook for industry action.
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Tiny Volumes Power Critical Technologies
- Rare earths are critical despite tiny volumes because they enable supermagnets used across electronics and defense.
- Jahangir Aziz explains 17 rare earth elements power magnets in microwaves, cars, satellites, and chips, making them pivotal to many industries.
Processing Not Mining Is The Choke Point
- The real choke point is processing, not mining, because extracting rare earths from ore requires massive input and complex separation.
- Aziz emphasizes mining is just the start; building midstream processing capacity is where supply security fails.
How China Won The Rare Earth Ecosystem
- China built an end-to-end ecosystem from mining to downstream industries, scaling processing and magnet manufacturing to drive prices down.
- Aziz recounts the 1980s shift: the U.S. retreated while China invested in processing, EVs, batteries, and legacy chip manufacturing.