Pakistan’s Rare Earth Minerals: A New Era of Geopolitical Power
When Pakistan’s Chief of Army Staff, General Asim Munir, presented Rare Earth Mineral (REM) samples to U.S. President Donald J. Trump at the White House, the gesture transcended the realm of mere ceremonial diplomacy. Nestled in a world rapidly shifting towards clean energy, electric vehicles, and AI-driven technologies, this exchange encapsulated a crucial geopolitical reality: minerals are becoming contemporary instruments of power.
A Shift from Oil to Minerals
In the 20th century, oil was the lifeblood of nations, influencing wars and shaping economies. Today, rare earths symbolize similar significance for the 21st century. These 17 critical elements—including neodymium, dysprosium, and lanthanum—are vital for technologies ranging from electric vehicles and wind turbines to smartphones and missile guidance systems. Despite their name, these minerals are not geologically rare; rather, the processes of extraction, refining, and processing are complex and environmentally challenging, granting considerable power to nations capable of controlling these stages.
China’s dominance is striking, with over 70% of global REM production and 90% of refining capacity, allowing it to weaponize supply chains. This was starkly evident during the 2010 restrictions on exports to Japan amid a diplomatic dispute. Consequently, the U.S., EU, and Japan now view REM diversification as a national security measure, instigating what analysts refer to as "the new Great Game beneath the surface."
The Global Race for Resources
As countries scramble to secure non-Chinese sources of REMs, initiatives like the Minerals Security Partnership (MSP) have been launched by the U.S. with allies such as Australia, Canada, and South Korea. Meanwhile, nations like India and Vietnam are engaging in joint ventures to exploit their resources. This competition isn’t merely economic but deeply strategic, linked to the future of technology, green transitions, and military superiority.
Geopolitical power is increasingly rooted underground, as the modern economy hinges on AI, military advancements, and electric vehicle production. In this context, alliances, trade regulations, and diplomatic agendas are evolving, with mineral resources becoming pivotal in the geopolitical landscape.
Pakistan’s Potential as a Strategic Player
Geologically rich regions within Pakistan, particularly the Chagai district in Balochistan, Gilgit-Baltistan, and parts of Khyber Pakhtunkhwa, are believed to hold substantial quantities of REMs, including neodymium and lithium. These minerals are essential for developing renewable energy technologies and defense systems.
However, Pakistan’s mineral wealth has remained largely untapped due to poor governance, inadequate infrastructure, and hesitance from international investors. Recognizing the strategic value of its subterranean resources, Islamabad is now initiating efforts to position itself as a dependable ally amid the global resource race.
General Asim Munir’s presentation of REM samples to President Trump symbolizes a shift in Pakistan’s diplomatic focus—aligning itself with emerging competition for resources between the U.S. and China. This action reflects an intent to merge economic diplomacy with national security, stepping away from traditional security paradigms.
Navigating the Geopolitical Landscape
Pakistan’s strategic location at the nexus of China, the Arabian Sea, and Central Asia enhances its potential. The China-Pakistan Economic Corridor (CPEC) has already introduced significant infrastructural investments that could facilitate mineral extraction and transport. However, Islamabad must tread carefully, balancing western partnerships while capitalizing on Chinese collaboration to avoid dependency on a single bloc.
Challenges to Mineral Utilization
While the potential for leveraging REMs exists, several institutional and strategic bottlenecks hinder Pakistan’s path. Chief among them is the absence of a cohesive mining policy linking geological exploration to economic and foreign policy initiatives. Currently, less than 10% of Pakistan’s mineral potential has been thoroughly explored, leaving vast untapped resources.
The lack of technological capability for processing and refining is another pressing concern. Pakistan’s current infrastructure does not support advanced REM processing, risking its future role to that of a mere raw material supplier, thereby forgoing potential profits from high-value manufacturing.
Moreover, security concerns in mineral-rich regions, alongside regulatory inconsistencies and overlapping jurisdictions, deter foreign investments and stall sustainable development initiatives.
Towards a National Strategy for Rare Earths
To capitalize on its REM resources, Pakistan requires a multifaceted national strategy focused on building capacity, institutional reform, and strategic alignment. Establishing a National Rare Earth Authority could enhance transparency and foster investor confidence, setting clear environmental regulations and governance frameworks.
By promoting public-private partnerships with technologically advanced nations, Pakistan can facilitate knowledge transfer and cultivate local talent. It’s essential to integrate environmental considerations and local community involvement to avoid the "resource curse" that has plagued other developing regions.
Aligning mineral policy with broader industrial objectives and climate strategies can transform potential commodities into instruments of economic sovereignty and strategic diplomacy.
The Future of Mineral Diplomacy
Rare earth minerals have emerged as pivotal in defining power dynamics in the evolving global order, where energy transitions and technological advances dictate influence. Should Pakistan harness its indigenous mineral wealth effectively and cultivate institutional resilience, it could revitalize its geopolitical stature and economic landscape.
The trajectory Pakistan chooses now will determine its economic sovereignty and global relevance for generations. This moment marks a confluence of geology and geopolitics, and the decisions made today will reshape the strategic map of power in the years ahead.