No, rare earths are not rare. Deposits with adequate concentrations for economic mining are rare, though. And the best deposit is in Australia.
Nor are they particularly essential in electronics any more. The demand destruction caused by Chinese pricing five/six years ago has led to alternatives for most applications, leaving Nd/Pr/Dy for magnets the main commercial products. The problem is then extracting what you want from all the other REE elements, as chemically they are all almost identical. Which is expensive.
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