Rare minerals: the most strategic assets of the 21st century

Critical Minerals · Market Intelligence

Rare minerals: the most strategic assets of the 21st century

Seventeen elements sit beneath every EV motor, wind turbine, and missile guidance system on Earth. Their scarcity is not geological — it is geopolitical. And that makes them one of the most compelling financial stories of the decade.

$18.2B
Global REE market 2024
$36.7B
Projected by 2034
70%
China's refining share
+503%
Terbium since Jan 2020

The IEA Critical Minerals Outlook 2025 confirmed that lithium demand rose nearly 30% in 2024 alone, while rare earth element demand grew 6–8%. Clean energy now drives 85% of total demand growth for battery metals — a structural trend locked in by climate legislation and EV adoption curves globally.

Price performance: rare earths vs. conventional assets

Element Price / kg Return since 2020 Key use
Terbium (Tb) $4,028 +503% Phosphors, fuel cells, magnets
Dysprosium (Dy) $930 +169% EV motors, wind turbines, defence
Neodymium (Nd) $218 +237% Permanent magnets for EVs & wind
Germanium (Ge) $5,670 +38% YTD 2025 Fibre optics, solar, semiconductors
Gold (benchmark) — ~+26% H1 2025 Store of value

Price data via Strategic Metals Invest and Trading Economics, April 2025.

The China chokehold — and why it matters now

According to the IEA, China leads refining for 19 of 20 key strategic minerals, averaging 70% global market share. In April 2025, Beijing imposed export controls on seven heavy rare earths including dysprosium and terbium — triggering a temporary shutdown of Ford's Chicago factory and forcing automakers across the US and Europe to scramble for supply.

"By weaponising its control over extraction, processing, and magnet production, Beijing is transforming rare earths from an economic asset into an instrument of geopolitical leverage." — SFA Oxford, 2025

The supply gap is structural: mine development takes 10–20 years, and IEA modelling shows announced projects meeting only 50% of lithium and 70% of copper needs by 2035. Total capital required across critical minerals to 2040 approaches $590 billion. The US Department of Defense became the largest shareholder in MP Materials, which simultaneously signed a $500 million supply deal with Apple for recycled rare earth magnets.

A new market takes shape: tokenized minerals on-chain

The supply crisis has not gone unnoticed in the blockchain space. A wave of platforms is now racing to bring physical critical minerals onto public ledgers — and the infrastructure is becoming real. Metals.io, built by Trilitech — the London-based R&D hub behind the Tezos ecosystem — launched in April 2026 offering tokenized exposure to a basket of five strategic metals including hafnium, rhenium, indium, neodymium oxide, and praseodymium oxide. The platform runs on Tezos' smart-rollup technology, delivering sub-50ms transaction confirmations.

It follows Uranium.io, which launched in December 2024 on Etherlink — Tezos' EVM-compatible Layer 2 — backed by uranium stored at Cameco, one of the world's largest uranium producers, and regulated by UK crypto firm Archax. The minimum entry is $10. Tezos co-founder Arthur Breitman has been explicit about the ambition: "the periodic table is going to be our product roadmap," said Bem Elvidge, Head of Commercial Applications at Trilitech, at TezDev 2026 in Cannes. Breitman himself framed it simply: commodity traders understand supply and demand — and on-chain ownership is the next logical step.

On the derivatives side, Hyperliquid has emerged as a parallel venue, offering 24/7 perpetual contracts on commodities including gold and oil — filling the gaps where traditional exchanges go dark overnight. The approach differs from physical-backing platforms: Hyperliquid provides price exposure and hedging, while projects like Metals.io and Uranium.io aim to make the token a legally enforceable wrapper around the metal itself. Both models are attracting serious attention as the tokenized commodities market has grown to approximately $7 billion.

It is into this rapidly forming market that Elementum STO is entering. Structured as a Security Token Offering backed by physically allocated rare mineral reserves, Elementum STO is positioning itself alongside Metals.io and Uranium.io as part of a new generation of regulated, asset-backed on-chain commodity vehicles. Where Metals.io focuses on a basket of five metals via the Tezos ecosystem, Elementum STO's focus is specifically on the rare earth elements most directly exposed to the geopolitical supply squeeze — the same materials that triggered factory shutdowns and government stockpiling programs in 2025.

The project is currently in its early offering stage. For investors who followed the Uranium.io model — which reduced the uranium investment minimum from institutional levels to $10 — Elementum STO represents a similar structural argument applied to rare earths: an asset class with inelastic industrial demand, constrained supply, and historically opaque access, now being opened through tokenization. Details are available at the Elementum STO project page.

Further reading: crypto.news — From uranium to rare earths: Tezos' bid to tokenize the elements · CSIS analysis · USGS Mineral Summaries 2024 · European Parliament briefing.

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