Global reserves of rare earth elements are highly concentrated, and production even more so, often exceeding 70% and sometimes approaching 90% in a single country, usually China. This creates extraordinarily fragile supply chains, where a natural disaster or political disruption can effectively cut off global supply, triggering rapid contraction in product availability and sharp price spikes.
The reverse is equally true. Resolution of a disruption, or deliberate flooding of the market, can drive prices down just as quickly.
Connections
Saudi Arabia Can Control The Price of Oil With Not A Lot Of Market Share
Rare Earth Elements Are Not Rare
Why Metalloids Are Needed For Technology
Reference
� The Elements of Power