Rare earths are a critical minor constituent of many advanced materials that are essential inputs to the manufacture of items such as mobile telephones, computers, televisions and autocatalysts. Although rare earths have a relatively high unit value, the impact of this cost has little, if any, impact on the selling price of the final item. Furthermore, as they are generally present in minute concentrations they are not recycled. It is for these reasons that rare earths are considered strategic materials. China dominates the market as it supplies over 85 per cent of world demand. It has recently taken steps to increase prices through the restriction of exports and support for minimum prices by an association of the major producers. This paper provides an overview of future opportunities for Australia in the context of the current dynamics of world supply and demand.