Significant defense applications include electronic displays, guidance systems, lasers, and radar and sonar systems. Although the amount of HREE used in a product may not be a significant part of that product by weight, value, or volume, the HREE can be necessary for the device to function. For example, magnets made of HREE often represent only a small fraction of the total weight, but without them, the spindle motors and voice coils of desktops and laptops would not be possible.
In 1993, 38 percent of world production of HREE's was in China, 33 percent was in the United States, 12 percent was in Australia, and five percent each was in Malaysia and India. Several other countries, including Brazil, Canada, South Africa, Sri Lanka, and Thailand, made up the remainder.
However, in 2008, China accounted for more than 90 percent of world production of HREE's, and by 2011, China accounted for 97 percent of world production. Beginning in 1990 and beyond, supplies of HREE's became an issue as the Government of China began to change the amount of the HREE's that it allows to be produced and exported. The Chinese Government also began to limit the number of Chinese and Sino-foreign joint-venture companies that could export HREE's from China.
And now, serious supply chain concerns have arisen with HREE's, because China has a stranglehold on global supply. This is of particular concern due to the need for HREE's by the military. The typical F-35 fighter contains nearly 1,000 pounds of rare earths. Reliance on China jeopardizes U.S. national security, and growing demand has EV makers on edge.