Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals'. Why? 1. China, which is the largest producer of these elements, has imposed some restrictions on their export. 2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements. Which of the statements given above is/are correct?

1. Statement 1 is correct. Around 2010-2012, China, being the dominant producer (over 90% of global supply at the time), significantly restricted the export of rare earth metals through quotas, causing international alarm and price spikes. This directly contributed to the concern over short supply. 2. Statement 2 is incorrect. While China, Australia, Canada, and the USA (not Chile prominently) are significant players, rare earth elements are geologically found in numerous other countries, including India, Brazil, Russia, Vietnam, Malaysia, etc. The issue was more about concentrated production and processing capacity rather than geological absence. 3. Statement 3 is correct. Rare earth metals are essential components in a wide range of modern technologies, including magnets for wind turbines and electric vehicles, catalysts, alloys, phosphors for screens and lighting, and various electronic items. The increasing demand for these applications fuels the concern over supply stability. 4. Since statements 1 and 3 accurately describe the reasons for concern over the supply of rare earth metals, option (C) is the correct answer.