Technological progress is steadily increasing our need for new resources. In recent years, headline issues from combating climate change to artificial intelligence and military defense have continuously driven the development of new technologies, in turn boosting demand for underground riches such as rare earth elements (REEs) and other critical minerals. As demand rises, competition among nations grows fiercer, and, as it has for more than a century, those who control the resources retain a decisive advantage.
China alone commands a vast share of this supply chain, while other major players such as the United States and the European Union are racing to secure their place in the contest. Türkiye is one of them. With the world’s second-largest reserve concentrated at a single site, Türkiye stands to become a meaningful actor in the evolving geopolitics of critical minerals.
Although rare earth elements (REEs) and critical minerals are most often discussed in the context of energy today, they are indispensable across a wide range of industries, from space technologies and defense to telecommunications and automotive manufacturing. Designing a production network without these inputs is almost impossible. Among the minerals that matter to nearly every sector, lithium, copper, nickel, aluminum, cobalt and manganese stand out.
Lithium, used primarily in electricity storage and battery technologies, is found in the largest quantities (by reserves) in Chile, Australia, Argentina, China and the U.S., respectively. Australia supplies roughly one-third of global lithium output, while China commands the largest processing capacity, at around 60%. Looking beyond lithium to include nickel, cobalt, graphite and the full basket of REEs, just three countries control about 86% of global processing capacity – a dominance projected to persist through 2030. China is expected to remain the single largest supplier across these minerals, a concentration that poses significant geopolitical risk. In response, signs of intensifying competition were evident the moment U.S. President Donald Trump returned to office, as Washington imposed quotas and steep tariffs on multiple countries – measures aimed squarely at reshaping the strategic landscape of critical minerals supply chains.
Commanding supply chain
While control over traditional energy sources such as oil, natural gas and coal still matters given their dominant share in primary energy consumption, securing reliable supplies of rare earth elements (REEs) and other critical minerals – now core inputs to clean-energy technologies – has vaulted to the top of the global agenda. Their strategic role extends beyond energy: because they are also vital to space and defense industries, two of the fiercest arenas of interstate competition, their importance has only grown.
Trump has declared open season on renewables – especially offshore wind – yet he places major emphasis on nuclear power (often grouped within clean-energy technologies) and on the defense sector. To safeguard supply chains for reactor construction, uranium enrichment, and a range of weapons systems from submarines to F-35s he treats REEs and critical minerals as a national-security priority. At home, he is spending billions in incentives to reshore production; abroad, he is seeking to exert influence over production beyond U.S. borders. Making REEs and critical minerals a pillar of foreign policy, Trump has been explicit about eyeing reserves in Greenland, Ukraine, Latin America and Africa.
Most recently, China’s decision to restrict exports of REEs and critical minerals, taken in response to the Trump administration’s higher tariffs and the EU’s announced “carbon-free trade” measures, sparked concern across many governments and markets. The move has already begun to squeeze the U.S. defense industry, while leading European automakers warn they may have to scale back output. As a countermeasure, some EU governments have moved to seize China-based chip manufacturers operating within their borders, and Trump appears poised to return from a five-day Asia tour claiming success.
During that trip, the president signed cooperation agreements on REEs and critical minerals with several Asian countries, including Japan and South Korea. To reverse Beijing’s curbs, Trump met China’s President Xi Jinping in South Korea on Oct. 30. He announced that, in exchange for lowering U.S. tariffs on China, Washington would retain access to China’s REE and critical-mineral supplies for another year, an announcement expected to cool market tensions.
Türkiye’s bid to refine, not just mine
In 2022, Türkiye discovered a rare earth element (REE) deposit in Beylikova, Eskişehir, believed to be the world’s second-largest single-site reserve. Since then, a pilot plant established under ETİ Maden has been refining REEs domestically using local capabilities. With an industrial-scale facility slated for completion within two years, the initial goal is to produce 10,000 tons of REEs annually.
Thanks to the enabling framework of the Renewable Energy Support Mechanism (YEKDEM) and the Renewable Energy Resource Zone (YEKA), Türkiye today ranks among Europe’s leading producers of wind-turbine components and solar panels. Beyond meeting domestic demand, it has become a regional manufacturer for clean-energy technologies through steady exports. Its first homegrown EV initiative, Togg, has marked a rapid entry into electric mobility – now poised to be crowned by the start of exports. Building on this position, Ankara aims to bring the newly discovered REE deposit into the economy, crossing a crucial threshold in the process. The stated ambition to become one of the world’s top five producers underscores that resolve. What we are witnessing is an evolution from mere equipment manufacturing toward a supply hub anchored in critical raw materials.
Reaching the top five, however, requires more than extracting ore. It demands investment in refining, technology partnerships, environmental permitting, and predictable incentives. Because production methods are more complex and costly than those for conventional minerals, collaboration will be essential to bring these resources online.
REEs, now a headline item in Türkiye’s energy diplomacy, are the subject of active talks with multiple countries to secure the best available technologies. China is one of them. In addition to holding the largest reserves, Beijing also commands the largest processing capacity, and in 2023 moved to restrict technology exports to protect its edge. Even so, bilateral cooperation agreements can offer pathways around these constraints. The U.S., Australia and Canada – each with significant experience in chips and semiconductors – also figure among potential partners. Beyond technology and know-how transfer, Ankara seeks local production, signaling that foreign investment will be welcomed on the condition that partners commit to building and producing in Türkiye.
Doing so while providing demand certainty for the domestic industry is key to balancing local-foreign interests and deepening economic “national content.” With an estimated 12.5 million tons in reserves, Türkiye can position itself as a supply center, especially for nearby European automakers, if it couples smart industrial policy with well-structured partnerships on the best possible terms.
The views and opinions expressed in this article are solely those of the author. They do not necessarily reflect the editorial stance, values or position of Daily Sabah. The newspaper provides space for diverse perspectives as part of its commitment to open and informed public discussion.
