Seventeen rare earth elements, including neodymium and cerium, are vital for modern technology, powering devices like smartphones and electric vehicles. Despite their name, these elements are relatively abundant, with significant reserves primarily in China, Brazil, and Vietnam. Extracting them poses environmental challenges, and China’s dominance in production has geopolitical implications, as highlighted by past export halts. The U.S. has become reliant on imports, emphasizing the strategic importance of rare earths in global trade and industry.
Essential for modern technology: 17 elements known as rare earths play a crucial role in devices like smartphones, electric vehicles, and drones. But what makes them so precious? And are they truly rare? Here’s a closer look at these fascinating elements.
Understanding Rare Earths
Rare earth metals consist of 17 distinct elements, including neodymium, praseodymium, cerium, and dysprosium. Although their individual characteristics vary, these metals are often found together in nature, which is why they have been collectively classified as rare earths.
The Value of Rare Earths
The significance of rare earths in the economy cannot be overstated. They are vital for producing semiconductors and for manufacturing devices such as smartphones and electric vehicles. In our increasingly digital world, these elements are strategically important. Each metal possesses unique properties that render it valuable to various industries. For instance, europium is essential for television screens, cerium is used for glass polishing, and lanthanum serves as a catalyst in gasoline engines. Neodymium and dysprosium are critical in creating magnets for offshore wind turbines, and rare earths can be found in drones, hard drives, telescope lenses, rockets, and fighter jets.
Are Rare Earths Truly Rare?
Surprisingly, rare earths are not as rare as their name suggests. Most of these elements are relatively abundant in the Earth’s crust. According to a 2024 evaluation by the United States Geological Survey (USGS), global reserves are estimated to be over 110 million tons, with China accounting for 44 million tons as the leading producer. Other significant reserves include 22 million tons in Brazil, 21 million in Vietnam, ten million in Russia, and seven million tons in India.
Germany has a substantial deposit located in northern Saxony, which remains untapped. Additionally, Europe has vast, unexploited reserves in Scandinavia, with Sweden announcing a notable discovery in 2023. However, the economic viability of mining these resources is a pressing concern, given the high costs and environmental impacts involved.
The Challenges of Production
Extracting rare earths presents numerous challenges. These elements are mainly found within ore layers, requiring complex chemical processes to isolate them in a pure form. This often involves the use of acids, which can produce harmful byproducts, such as radioactive isotopes and toxic wastewater. Consequently, production sites can be left in devastated states. Experts argue that the extraction of rare earths in Germany poses significant environmental challenges that render it unfeasible.
The Dominance of China in Rare Earth Production
China is the undisputed leader in the global rare earth market. The country not only possesses extensive reserves but has also heavily invested in refining capabilities, establishing a robust infrastructure over the years. Furthermore, China holds numerous patents for the technology required for processing these materials, which has led many other producers to export their raw materials to China post-extraction. By accepting higher environmental costs for its own production, China has solidified its dominance in this sector.
The strategic use of rare earths as leverage was first evident in 2010, when China halted exports to Japan amid a territorial dispute. A similar threat emerged in 2019 during trade tensions with the United States, highlighting the geopolitical significance of these resources. Currently, approximately two-thirds of the rare earths imported by the U.S. originate from China.
The Importance of Rare Earths for the United States
The renewed trade conflict initiated by former U.S. President Donald Trump has amplified the significance of rare earths for American industry. Historically, the U.S. was a leader in the global market for these elements, but it has since become heavily reliant on imports. Notably, Ukrainian President Volodymyr Zelensky has recognized this issue, proposing the exchange of rare earths for military aid, which he had suggested even before the U.S. elections in the fall.
Source: AFP
This topic was covered extensively on February 4, 2025, at 5:00 PM.