In the sprawling industrial landscape outside Wuxi, China, a refinery hums with quiet intensity. Within its walls lies the world's only source of ultrapure dysprosium, a rare-earth metal now indispensable for artificial intelligence chips. This unassuming facility is a key piece in a much larger puzzle: China's six-decade campaign to secure dominance over rare earths, a collection of 17 elements vital to modern technology.

The story begins in April 1964, at an iron ore mine near Baotou, a city nestled 50 miles from the Mongolian border. Chinese geologists stumbled upon a remarkable discovery: the world's largest deposit of rare earths. Deng Xiaoping, a rising star in the Communist Party, recognized the strategic importance of this find. "We need to develop steel, and we also need to develop rare earths," he proclaimed during a visit to the remote mine. This marked the beginning of a long-term strategy to control these critical resources.

Rare earths are not actually rare in terms of their abundance in the Earth's crust. However, they are rarely found in concentrated, economically viable deposits. These elements, with names like neodymium, praseodymium, and dysprosium, possess unique magnetic and conductive properties that make them essential for a wide range of applications, from smartphones and electric vehicles to wind turbines and, increasingly, AI.

China's approach to rare earths has been multifaceted. Initially, the focus was on extracting and processing the raw materials. Over time, the country invested heavily in research and development, creating a sophisticated supply chain that spans from mining to manufacturing advanced components. This vertical integration has given China a significant competitive advantage.

The ultrapure dysprosium produced in Wuxi exemplifies this strategy. Dysprosium is a key ingredient in high-performance magnets used in electric vehicle motors and wind turbine generators. More recently, it has become crucial for AI chips, where its unique properties enable faster processing speeds and greater energy efficiency. The ability to produce this highly refined material gives China a strategic edge in the rapidly evolving AI landscape.

"China's dominance in rare earths is not just about geology; it's about policy," explains Dr. Alicia Eastman, a resources expert. "They recognized the strategic value of these materials early on and invested accordingly. This has allowed them to build a comprehensive industry that is difficult for other countries to replicate."

The implications of China's rare earth dominance are far-reaching. It gives the country significant leverage in global trade and technology. Concerns have been raised about potential supply disruptions and the impact on industries that rely on these materials.

The West is now playing catch-up. Governments and companies are investing in domestic rare earth projects and exploring alternative supply chains. However, these efforts face significant challenges, including environmental regulations, high costs, and the technical expertise required to process these complex materials.

Looking ahead, the demand for rare earths is only expected to increase as AI becomes more pervasive and the world transitions to a green economy. The race to secure access to these critical resources will continue to shape global geopolitics and technological innovation. China's six-decade campaign has positioned it as a key player in this arena, but the future of rare earths remains uncertain as other nations strive to diversify supply and develop alternative technologies.