China presently has significant influence over the REE supply chain since it owns between eighty and ninety percent of the worldwide REE manufacturing and processing capacity. Western countries, especially the United States and the European Union, are concerned regarding the supply chain shortcomings in the first place. This study examines the reasons for China's monopoly and longstanding and present supremacy in the worldwide REE marketplace, evaluates both the financial and geopolitical threats that China's monopoly on REEs poses and investigates the methods used by the US, EU, Japan, and other countries to lessen their reliance on Chinese REEs. Finally, this thesis assesses the actions that should be taken from Westen nations for the long-term feasibility and efficacy in guaranteeing a steady, varied supply of REEs. The scope of this study is to explore China's strategic utilization of exports and its position in the worldwide REE marketplace, explore the ways in which the United States, the European Union and Japan should respond to the need to secure alternate REE supply and explore the legislative and technological steps to lessen dependency on Chinese REEs.