Without rare earth minerals, modern manufacturing, technology, and defence industries simply cannot function.
These critical materials are essential for producing semiconductors, EV batteries, pharmaceuticals, aerospace components, and AI-driven technology. Discussions for the US to access Ukraine’s vast reserves of rare earth minerals have recently stalled, leaving a key supply chain opportunity in limbo.
While negotiations remain uncertain, one thing is clear – the US must secure stable and diversified sources of rare earth minerals to protect supply chains and maintain global competitiveness.
“Supply chains don’t exist without rare earth minerals – without them, there are no semiconductors, no AI, no clean energy solutions, and no advanced defence systems,” said Lisa Anderson, MBA, CSCP, CLTD, President of LMA Consulting Group, Inc., and recognised supply chain expert. “We hope that discussions resume because securing reliable access to these materials is not just an economic advantage – it is a necessity for innovation, national security and supply chain resilience.”
Why rare earth minerals matter
Supply chains rely on natural resources – they are the foundation of manufacturing, technology, and energy production. Without critical minerals such as silicon, gallium, germanium, palladium, lithium and rare earth elements, production grinds to a halt. These materials are used in:
✔ Semiconductor chips – the foundation of modern electronics and AI
✔ Pharmaceuticals – essential for active drug ingredients
✔ Medical devices/technologies – required for medical imaging technologies & in some devices
✔ Electric vehicles (EVs) – key to lithium-ion battery production
✔ AI and data centres – high-energy demand requiring vast natural resources
✔ National defence – used in military technology and aerospace manufacturing
“Natural resources aren’t just about availability – they’re about accessibility and investment,” Anderson added. “Ukraine’s reserves, along with domestic and allied sources, present strategic opportunities to reduce dependence on adversarial nations while strengthening US manufacturing.”
The push for domestic and allied sourcing
The US has untapped reserves of critical minerals, but policy, environmental regulations, and long lead times have hindered extraction efforts. Meanwhile, China continues to dominate the global market, controlling up to 80% of rare earth processing capacity. To reduce dependence on geopolitical adversaries, manufacturers must explore multiple sourcing strategies:
✔ Nearshoring and friendshoring – sourcing from allied nations
✔ Investing in domestic resources – exploring US-based mining and refining operations
✔ Strengthening supply chain visibility – understanding where key materials originate, mitigating risks
✔ Leveraging AI & digital technologies – optimising supply chain resilience through data-driven planning
“With AI, clean energy, and advanced manufacturing driving demand for rare earth minerals to unprecedented levels, securing access to these materials is no longer optional – it’s essential for long-term success,” Anderson said.
To learn more about navigating supply chain vulnerabilities and future-proofing your business, download LMA Consulting Group’s special report: ‘FutureScape: Crafting Tomorrow’s Supply Chain Today’.
