Contribution of Rare Earth Elements Is Key to the Economy of the Future

Abstract

An econometric model was developed to analyze the contribution of various factors to the gross value added to the agricultural, manufacturing, and service sectors in the United States. The study found that variables such as rare earth element mining, the employment it generates, the domestic consumption, imports, and prices of certain elements significantly impact economic sectors. The models showed a good fit and met the necessary statistical assumptions. Rare earth elements are essential for a wide range of technological products, with China being the leading producer and consumer. This has raised concerns about the dependence on other countries. These elements significantly impact the economy’s primary, secondary, and tertiary sectors used in agriculture, manufacturing, and services. Rare earth elements’ mining and processing are complex and expensive processes, and demand is expected to continue to increase in the future.