from electric vehicles to mobile phones and even fighter jets.

However, China dominates the supply chain.

And as relations between the US and China deteriorate,

western countries fear they don't

have an alternative, which could have

serious implications for the future of manufacturing.

Rare earths are a group of 17 metallic elements

with obscure names such as lanthanum and terbium.

They're actually relatively plentiful in the earth's crust.

However, their geochemical qualities

mean they tend to be widely dispersed, making them

relatively difficult to mine and process profitably, hence

the name.

As a group, they tend to have high melting

and boiling points.

But it is when they react with other elements

that they become really useful.

In fact, they're indispensable for many electronic, optical,

and magnetic applications and currently irreplaceable

for modern devices such as electric vehicles

and mobile phones.

They're also vital for the defence industry.

Half a century ago, the Mountain Pass mine in California

was the world's leading source of rare earths.

But a successful push by Beijing to become the global leader

in the sector means it now produces about 80

per cent of the world's rare earths.

The sharp deterioration in relations between the US

and China is fueling concerns that Beijing

could cut off the supply.

In July, China threatened to impose sanctions

on Lockheed Martin, the biggest US arms manufacturer.

This has prompted the US, Australia, and the EU

to step up efforts to create an alternative supply chain.

Currently, there is just one major non-Chinese supplier

of rare earths, Lynas, an Australian-listed company.

But Lynas can only handle the so-called light rare earths

at its Malaysian processing facility,

leaving western companies totally

reliant on Chinese suppliers for heavy rare earths.

In July, the Pentagon provided funding to Lynas and US-based

MP Materials to design heavy rare earths processing

facilities that could be based in the US.

The US and Australian governments

have also signed an agreement to source new rare earth deposits

to boost security of supply.

The task of establishing a non-Chinese supply chain

will not be easy, however.

Even though rare earths are relatively abundant the process

of separating them poses technical and environmental

challenges.

China's dominance of the market enables

it to control prices and put pressure on challengers.

Beijing's Made in China 2025 strategy

is to create a vertically integrated supply chain

that dominates mining magnates in high-tech manufacturing,

such as electric vehicles.

But an increasing number of western experts

say this is exactly why the west needs

to begin producing its own supply of rare earths

and also the high high-performance magnets

required to power the digital age.

Otherwise, millions more high-tech jobs

could migrate to China.