While official narratives surrounding the ongoing Iran-US negotiations emphasize nuclear de-escalation and regional stability—particularly regarding Israel—there’s an unspoken but potentially more powerful driver behind the scenes: rare earth elements.
For years, Iran was primarily recognized for its vast reserves of oil, gas, and base metals. However, a strategic pivot began around 2016, when Iran’s nuclear chief revealed plans to co-mine rare earths alongside uranium. The move was aimed at cutting costs and supplying both domestic markets and export demands. That same year, the National Center for Minerals announced the successful extraction of seven key rare earth elements from local mines, including praseodymium, neodymium, cerium, yttrium, mischmetal, ferrotitanium, and lanthanum—each critical to industries from aerospace to electronics.
Iran’s mineral awakening reached a turning point in 2023 with the discovery of an 8.5-million-ton deposit of lithium-rich hectorite clay in Hamadan Province. The find placed Iran squarely on the global map of strategic mineral resources. In April 2025, Tehran took a significant leap by launching its first fully domestic monazite-processing plant, underscoring its determination to advance independently in rare earth production.
Amid these developments, former U.S. President Donald Trump’s stated concerns about Iran’s nuclear program may be concealing deeper economic ambitions. His recent moves—including a rare earths deal with Ukraine and heightened rhetoric against China’s RE export policies—suggest a clear interest in gaining access to Iran’s critical mineral reserves.
But time may be running out for Washington. In January, Iran and Russia inked a Comprehensive Strategic Partnership, which has already expanded into lithium cooperation. Meanwhile, Iran’s strong and growing mining ties with China are setting the stage for a powerful axis of resource dominance—one that may soon leave the U.S. on the outside looking in.
