The Final Frontier

Shrikumar Sangiah

The world is steadily moving away from fossil fuels towards more sustainable solutions to meet its energy needs. This has led to an increase in the demand for rare earth elements (REEs). REEs are critical for the manufacture of batteries and electric vehicles. This shift towards sustainable sources of energy comes with serious security implications arising from China’s disproportionately large hold on the REE industry. The majority of the world’s REE reserves are found in China—making the world heavily reliant on China for its REE needs.

Many key defence equipment rely on parts made from REEs. REEs are essential for the manufacture of GPS equipment, cell phones, fibre optics, computers and missiles. Rare earth elements yttrium and terbium are used for laser targeting and weapons mounted on combat vehicles. According to a 2013 United States Congressional Research Service report, 920 pounds of REEs are used on each F-35 Lightning II aircraft.

China already dominates the land-based global supply chains of REEs and is now rapidly expanding its presence in deep-sea mining (DSM), accentuating existing energy and military security concerns. Until very recently, 70 per cent of all the cobalt (a key ingredient in the manufacture of Li-ion batteries) used worldwide was sourced from the Democratic Republic of Congo (DRC). Chinese companies own 15 of DRC’s 19 cobalt mines. Almost all the cobalt from DRC’s mines is shipped to China to be refined before it is sold in the world’s markets. The DRC is losing jobs and its fair share of the profits while China has gained a stranglehold on the world’s cobalt supply chain.

Recently, a Congolese court barred a Chinese firm from operating one of the cobalt mines, for cheating on royalty payments. There has also been growing public resentment, in the DRC, against the loss of jobs and the flight of profits to China. Increasing difficulty in sourcing REEs from overseas mines has fuelled China’s concerted push in DSM to maintain its dominance in the REEs market.

Greater investments in DSM further key strategic objectives for China. It helps solidify the world’s dependence on China for REE supply. Control of the supply of REEs hands China the leverage over the world’s ability to manufacture EV batteries, solar panels, semiconductor chips and guided missiles—potentially providing China with an enormous strategic advantage over its adversaries.

The Deep Sea

The deep seas, once considered the last frontier of exploration, have increasingly become the focus of militarisation efforts by nations across the globe. The concept of militarising the deep seas traces back to the emergence of naval power in ancient civilisations. From the Phoenicians to the Greeks, and Romans, maritime dominance played a pivotal role in the expansion of territory and shaping of the course of history. However, it wasn’t until the 20th century that advancements in technology enabled nations to explore and exploit the depth