Core Viewpoint - Rare earth elements are critical strategic resources with significant economic and strategic importance, often referred to as the "vitamins of modern industry" and the "new material treasure trove of the 21st century" [15][13]. Group 1: Importance of Rare Earth Elements - Rare earth elements possess unique magnetic, optical, and electrical properties, making them essential in various high-tech applications across 13 fields and over 40 industries, including aerospace, new energy vehicles, and defense [15][18]. - The U.S. Department of Defense has identified five rare earth elements as critical for clean energy technologies and supply chain risks [18]. - China holds the largest reserves of rare earth elements, accounting for over 90% of global market demand despite having only 23% of the world's total reserves [27][36]. Group 2: Global Competition and Strategic Significance - The competition for rare earth resources is intensifying globally, with countries like the U.S., Japan, and Australia implementing strategic plans to secure their supply chains [20][18]. - Rare earths are indispensable in the production of advanced military technologies, including missiles, radars, and satellites, highlighting their strategic military importance [97][98]. Group 3: China's Dominance in Rare Earth Production - China has established itself as the world's leading producer of rare earth elements, with production levels exceeding 85% of global output in 2019 [75][27]. - The Baiyun Obo mine in Inner Mongolia is the largest rare earth mine globally, contributing significantly to China's production capacity [37][27]. Group 4: Challenges and Sustainable Development - The rare earth industry faces challenges such as low extraction efficiency, environmental pollution, and a lack of high-end products, necessitating improvements in technology and sustainable practices [42][90]. - There is a pressing need for efficient and balanced utilization of rare earth resources to address global sustainability concerns [79][80]. Group 5: Applications of Rare Earth Materials - Rare earth magnetic materials are crucial in various applications, including clean energy, satellite communication, and medical technologies, with a significant portion of their use in high-end sectors [63][70]. - The demand for rare earth permanent magnets is increasing, with China being the largest producer and consumer in this sector [75][70].