Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals'. Why? 1) China, which is the largest producer of these elements, has imposed some restrictions on their export. 2) Other than China, Australia, Canada and Chile, these elements are not found in any country. 3) Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements. Which of the statements given above is/are correct?

The answer is C (1 and 3 only). Statement 1 is true: China dominates rare earth mining and processing, and from 2010 it began restricting exports through quotas and licensing, which caused the supply scare. Statement 3 is true: rare earths such as neodymium, dysprosium and europium go into magnets, displays, batteries, lasers and many electronic devices, so demand keeps rising.

Statement 2 is false. Rare earths occur in many countries, including the USA, Russia, India, Brazil, Vietnam and several African states. China, Australia, Canada and Chile are not the only sources. The real issue is that processing is concentrated in a few places, not that the ore exists only there.

The core concept is supply chain concentration in critical minerals. This links to the Economy and International Relations syllabus, and in Mains it connects to India's import dependence and the National Critical Mineral Mission launched in 2025.

Trap: Aspirants often accept Statement 2 because it sounds plausible. Confusing where a resource is found with where it is mined or refined is the common error.