Uncommon Chemical Elements: An Overview of Rare Earth Minerals
In the race towards carbon neutrality and the growing demand for clean energy, the focus on rare earth minerals has intensified. These elements, essential for defense, advanced technologies, and clean energy applications such as electric vehicles and renewable energy systems, are becoming increasingly strategic resources.
Currently, China dominates the production and processing of rare earth minerals, controlling about 90% of the global supply and processing capacity. This dominance gives China significant geopolitical leverage, a fact that other countries are keenly aware of. Countries like Australia, the United States, India, and Japan are rapidly expanding their production and refining capabilities, aiming to diversify supply chains.
Australia, for instance, is developing new processing hubs, including a $1.25 billion refinery expected in 2026, and mining projects backed by billions in funding to increase their rare earth oxide supply substantially between 2025 and 2027. The Mount Weld mine in Australia produces significant amounts of rare earth concentrate.
The United States is also rekindling its domestic production in response to China's export restrictions, which have caused severe supply disruptions and price spikes of more than 60-fold for some rare earth elements critical to military production.
Looking ahead, global demand for rare earths is projected to double or triple by 2040 due to energy transition and technology growth. China itself may face supply shortfalls around 2030, increasing the importance of mining and refining operations outside China, especially in Africa and other resource-rich regions. However, these face environmental and social sustainability challenges.
Rare earth mining and processing can create serious environmental problems, including radioactive waste, toxic chemicals, acid mine drainage, and large waste tailings. Developing new mines and processing facilities requires years of work and substantial investment before production can begin. Separation of rare earth elements requires extensive chemical processing due to their low concentrations and chemical similarity.
Efforts to develop "cleaner" extraction methods are ongoing, including bioleaching using bacteria and improved waste management techniques. Research into alternative materials may also reduce dependence on certain rare earths for specific applications.
Countries are now classifying rare earths as critical materials, launching initiatives to secure supply chains through strategic partnerships, government investment, stockpiling, research, and trade agreements. New discoveries, such as the Per Gejer deposit in Sweden, may help diversify supply in the future.
The push for supply chain diversification and the development of recycling technologies will continue as countries seek to reduce vulnerability. Stricter environmental standards for mining and processing will affect production costs globally. The concentration of production and processing in China creates risks for industries worldwide, intensifying as applications in defense and green technology expand.
In summary, the concerns are concentrated on supply chain security, geopolitical tensions arising from China's export controls, rising prices, technological competition, and the strategic imperative for diversified and sustainable rare earth mineral production worldwide. Russia, India, Brazil, Greenland, Canada, and Vietnam are emerging sources with significant potential deposits. The focus is on sustainable and environmentally friendly methods of extraction and processing, as well as the development of alternative materials and recycling technologies.
- Environmental-science and technology sectors are increasingly interested in finding "cleaner" extraction methods for rare earth minerals due to their environmental impacts, such as radioactive waste, toxic chemicals, and large waste tailings.
- Australia and the United States, aiming to diversify their rare earth mineral supply chains, are rapidly expanding their production and refining capabilities in the field of environmental-science and industry.
- Financial institutions and governments are investing heavily in these efforts, recognizing the general-news and strategic importance of rare earth minerals in clean energy, defense, and advanced technologies, as well as the growing demand for them in lifestyle and climate-change mitigation.
- In a world where countries are classifying rare earth minerals as critical materials and launching initiatives to secure their supply chains, technology and environmental-science partnerships will be crucial for ensuring a sustainable and economically viable future, while addressing geopolitical tensions and resource shortfalls.
