Rare Earth Elements in the Global Economy: Usage, Recovery, and the Quest for Supply Security – A Review

Abstract

Often described as the vitamins of modern industry, rare earth elements (REEs) are indispensable for the deployment of low-carbon and clean energy technologies. However, ensuring a secure and sustainable REE supply remains a major challenge due to the strong interdependence between application-driven demand, extraction and processing technologies, and the geopolitical concentration of resources. This review adopts an integrated analytical framework in which these three dimensions are treated as interconnected components shaping the resilience of global REE supply chains. First, the major application sectors of REEs are examined to clarify how emerging energy and advanced manufacturing technologies drive demand for specific elements and amplify their strategic importance. Second, extraction and processing technologies are reviewed in relation to both primary and secondary resources, highlighting how technological maturity, process selection, and material characteristics constrain or enable supply expansion. Finally, geopolitical and strategic aspects of the REE supply chain are analyzed to demonstrate how resource concentration, policy instruments, and international dependencies directly influence technological deployment and industrial competitiveness. By explicitly linking application-driven demand, technological pathways for extraction and processing, and geopolitical supply structures within a unified framework, this review provides a coherent understanding of the systemic challenges facing the REE sector and identifies key leverage points for improving the robustness and sustainability of REE supply chains in the context of the global clean energy transition.