Core Insights - Rare earths have become a significant leverage for China in the ongoing trade war, while the U.S. is attempting to form a "global critical minerals trading club" to create a supply chain excluding China [1] - Russia has decided to enter the rare earth competition, with President Putin approving a directive to accelerate the establishment of its own rare earth mining and processing industry to reduce dependence on China and the U.S. [1][3] Group 1: Russian Rare Earth Strategy - Putin has instructed the Russian government to approve a long-term development plan focused on the mining and production of rare earth and rare metals by December 1 of this year [3] - The core objective of this plan is to develop a self-sufficient rare earth industry, minimizing reliance on other countries [3] - Rare earths are crucial for Russia's electronics, defense, and automotive sectors, making them a priority for technological development [3] Group 2: Resource Availability and Challenges - Russia has identified 18 rare earth deposits with a total reserve exceeding 28 million tons, positioning it as the second-largest holder of rare earth reserves globally, following China's 44 million tons [5] - Despite the rich reserves, Russia's current rare earth extraction is minimal, with less than 2% of the proven reserves being mined [7] - The extraction process is complicated due to the low concentration of valuable components in many deposits, requiring advanced technology and significant investment [7] Group 3: Political and Technical Hurdles - Russia's rare earth refining technology has lagged since the Soviet Union's dissolution, necessitating substantial investment in talent, technology, and funding to catch up with global standards [7] - The current political climate has made cooperation with the U.S. in the rare earth sector nearly impossible, complicating Russia's ambitions [9] - The country faces the challenge of wanting to achieve a lot while lacking the capacity to support its ambitions, indicating a need for a practical implementation of its plans [9]