Rare Earth Minerals - What They Are and Why They Matter
- E for mobility
- Apr 23
- 8 min read
Rare earth minerals, often referred to as rare earth elements (REEs), are a group of 17 chemically similar elements that play a pivotal role in modern technology, from smartphones to renewable energy systems and advanced military equipment. Despite their name, these minerals are not particularly rare in the Earth’s crust, but their extraction and processing are complex, costly, and environmentally challenging, making their supply chain a critical geopolitical issue. This blog post delves into what rare earth minerals are, provides examples, explores where they are found, and examines which countries hold leverage through their control over these resources and their supply chains.
What Are Rare Earth Minerals ?
Rare earth elements are a set of 17 metallic elements in the periodic table, including the 15 lanthanides—lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), and lutetium (Lu)—plus scandium (Sc) and yttrium (Y). These elements are grouped together due to their similar chemical properties, which stem from their electron configurations. They are prized for their unique magnetic, luminescent, and electrochemical properties, making them essential in high-tech applications.
The term “rare earth” is somewhat misleading. Elements like cerium are as abundant in the Earth’s crust as copper, while even the least common, thulium and lutetium, are more plentiful than gold. However, REEs are rarely found in economically viable concentrations, often dispersed within other mineral deposits. Extracting and refining them requires complex processes, including mining, milling, chemical separation, and conversion into usable forms like oxides, metals, or alloys. These processes are energy-intensive and can produce toxic and radioactive byproducts, raising environmental concerns that complicate their production.
REEs are critical to industries such as electronics, renewable energy, and defense. For example, neodymium and praseodymium are used in powerful magnets for electric vehicle motors and wind turbines, while dysprosium enhances magnet performance at high temperatures. Europium and yttrium are key in LED lighting and phosphors, elements like cerium and yttrium are vital for processes such as chemical mechanical planarization (CMP) and lithography and gadolinium is used in medical imaging. Their irreplaceable roles in cutting-edge technologies make securing their supply a strategic priority for nations worldwide.
Examples and applications of Rare Earth Minerals
Here are some key rare earth elements, their properties, and their primary uses:
Neodymium (Nd): A critical component in neodymium-iron-boron magnets, used in electric vehicle motors, wind turbine generators, and hard disk drives. Its strong magnetic properties are essential for compact, high-performance devices.
Praseodymium (Pr): Often combined with neodymium in magnets, praseodymium enhances corrosion resistance and is used in aircraft engines and high-strength alloys.
Dysprosium (Dy): Added to magnets to maintain performance at high temperatures, making it vital for electric vehicles and industrial motors.
Cerium (Ce): The most abundant REE, used as a catalyst in petroleum refining and catalytic converters for vehicles, as well as in glass polishing.
Europium (Eu): Used in phosphors for LED lights, television screens, and fluorescent lamps due to its luminescent properties.
Yttrium (Y): Not a lanthanide but included as an REE, yttrium is used in ceramics, superconductors, and phosphors for displays and lighting.
Gadolinium (Gd): Employed in MRI contrast agents and neutron capture in nuclear reactors due to its unique magnetic and neutron-absorbing properties.
REEs are critical to:
Semiconductors: Enabling wafer polishing and lithography equipment.
Renewable Energy: Magnets for wind turbines and electric vehicles.
Defense: Guidance systems and radar.
Medical Technologies: MRI contrast agents.
These examples highlight the diverse applications of REEs, from consumer electronics to green energy and medical technologies, underscoring their importance in modern economies.
Where Are Rare Earth Minerals Found ?
Rare earth elements are found globally, but economically viable deposits are less common, often occurring in specific mineral ores like bastnaesite, monazite, and lateritic ion-adsorption clays.
Below is an overview of key locations and their significance:
China: The world’s largest producer and processor of REEs, China holds approximately 44 million metric tons (MT) of reserves, primarily in the Bayan Obo mine in Inner Mongolia. In 2023, China accounted for over two-thirds of global rare earth mine production and 85-90% of refining capacity.
United States: The U.S. has 1.5 million MT of reserves, with the Mountain Pass mine in California being the only active REE mine. The Round Top deposit in Texas and sites in Wyoming and Alaska are also promising.
Australia: With 5.7 million MT of reserves, Australia is a major producer, led by the Mount Weld mine operated by Lynas Rare Earths. It also hosts processing facilities in Malaysia.
Vietnam: Holding 22 million MT of reserves, Vietnam is an emerging player, with deposits along its border with China and eastern coastline. Production was 300 MT in 2024, but the country aims to scale up to 2 million MT annually by 2030.
Brazil: With 21 million MT of reserves, Brazil has significant potential, particularly in heavy rare earths, but its production remains low at 1,000 MT annually.
India: India’s 6.9 million MT of reserves are largely in beach and sand deposits rich in monazite. It produced 2,900 MT in 2024, with plans to expand refining capacity.
Russia: Ranking fifth with 10 million MT of reserves, Russia produced 2,600 MT in 2024, primarily for domestic use.
Greenland: With 1.5 million MT of reserves, Greenland’s deposits, especially in the southwest, are attracting attention as a potential Western supply source.
Africa: Countries like Madagascar, South Africa, and Tanzania have untapped potential, with projects like the Toliara deposit in Madagascar gaining traction.
Other regions, such as Kazakhstan (with a recently discovered 20 million MT deposit) and the Fennoscandian Shield (Norway, Finland, Sweden), also show promise but face challenges in development due to technical and environmental hurdles.
Countries with Leverage in Rare Earth Supply Chains
The global rare earth supply chain involves mining, processing, refining, and manufacturing, with each stage presenting opportunities for geopolitical leverage.
Below are the key players and their influence:
China: The Dominant Force
China’s dominance in the rare earth market is unparalleled, controlling approximately 70% of global mined production and 85-90% of refining capacity in 2023. Its strategic consolidation, led by state-run companies like China Rare Earth Group, Northern Rare Earth Group, and Shenghe Resources, has solidified its grip. China’s leverage stems from:
Production and Refining: China mines 140,000 MT annually and processes the majority of the world’s REEs, including critical elements like neodymium, dysprosium, and terbium. Its Bayan Obo mine is the largest single source.
Export Controls: China has used export restrictions as a geopolitical tool, notably in 2010 against Japan during a diplomatic dispute, causing a sevenfold price spike. Similar threats were made against the U.S. in 2019.
Cost Advantage: Lower labor costs, faster permitting, and less stringent environmental regulations allow China to produce REEs at lower costs, undercutting competitors.
Market Manipulation: China has flooded global markets with low-priced REEs to discourage foreign investment, as noted by the U.S. Department of Defense.
This dominance gives China significant influence over global prices and supply availability, posing risks to nations reliant on its exports, particularly for defense and clean energy technologies.
United States: Seeking Independence
The U.S. is heavily reliant on Chinese imports, with over 95% of its REE consumption imported between 2019 and 2022. However, efforts to reduce this dependency are accelerating:
Mountain Pass Mine: Operated by MP Materials, this is the only active U.S. REE mine, producing 38,000 MT in 2024. Plans to restore on-site refining by 2025 aim to create a full domestic supply chain.
Government Support: Executive Order 13817 (2017) and subsequent grants from the Department of Defense and Department of Energy are funding domestic mining and processing, including a $9.6 million grant to MP Materials.
Challenges: High capital costs, technical complexity (with a 1.5% success rate for REE projects from 2011-2021), and stricter environmental regulations hinder rapid expansion.
The U.S. aims to secure its supply chain for national security and climate goals, but scaling up refining capacity remains a bottleneck.
Australia: A Key Ally
Australia is the second-largest producer, with 17,000 MT mined annually, led by Lynas Rare Earths. Its leverage includes:
Reserves and Production: The Mount Weld mine and processing facilities in Malaysia make Australia a critical non-Chinese supplier.
Western Alignment: As a U.S. ally, Australia is a strategic partner in the Minerals Security Partnership, aimed at diversifying critical mineral supply chains.
Investment: Pentagon funding for Lynas to build a Texas processing facility enhances its role in reducing Western reliance on China.
Australia’s stable political environment and advanced mining infrastructure make it a reliable alternative, though its refining capacity is limited compared to China.
Emerging Players: Vietnam, India, and Africa
Vietnam: With the world’s second-largest reserves (22 million MT), Vietnam is poised to expand production, aiming for 2 million MT annually by 2030. Its proximity to China and focus on clean energy increase its potential leverage.
India: India’s 6.9 million MT of reserves and growing refining capabilities, supported by government initiatives like IREL, position it as an emerging player. Its participation in the Minerals Security Partnership strengthens its role in Western supply chains.
Africa: Countries like Madagascar, South Africa, and Tanzania are attracting investment due to untapped reserves. The African Continental Free Trade Area could enable regional processing hubs, reducing reliance on Chinese refining.
These regions face challenges like high capital costs, technical expertise shortages, and environmental concerns but offer opportunities to diversify global supply chains.
Supply Chain and Refining Challenges
The rare earth supply chain is complex, involving mining, concentration, separation into oxides, and refining into metals or alloys. Each stage presents vulnerabilities:
Mining: REEs are often found in low concentrations, requiring large-scale operations that can harm ecosystems. In-situ leaching, used for heavy REEs, can contaminate groundwater if not managed properly.
Refining: Separating REEs is technically challenging due to their similar chemical properties, requiring up to 1,500 steps and producing toxic byproducts. China’s 85-90% control of refining capacity creates a global chokepoint.
Environmental Impact: Mining and refining generate pollutants like mercury, cadmium, and radioactive thorium. In China’s Bayan Obo region, long-term processing has caused skin sores and water contamination among locals.
Geopolitical Risks: China’s dominance allows it to manipulate prices and restrict exports, as seen in 2010 and 2019. Western nations are investing in alternative supply chains, but only five non-Chinese refineries (in Nevada, Malaysia, France, Estonia, and Western Australia) are operational or under construction.
Efforts to address these challenges include recycling REEs from electronic waste, developing substitutes, and designing products for easier reuse. However, substitutes often perform less effectively, and recycling programs are not yet scalable.
The Geopolitical Stakes
The control of rare earth minerals is a geopolitical flashpoint, with implications for economic competitiveness and national security. China’s dominance gives it leverage to influence global markets and exert pressure during disputes. For example, a single U.S. F-35 fighter jet requires 427 kg of REEs, and a Virginia-class submarine needs 4.2 tonnes, highlighting their critical role in defense.
Western nations are responding by:
Diversifying Supply Chains: The U.S., Australia, and Canada are investing in domestic and allied production, with initiatives like the Minerals Security Partnership and Canada’s $162 million investment in Quebec’s processing capabilities.
Research and Development: Efforts to improve refining techniques and find substitutes are underway, though progress is slow due to high costs and technical complexity.
Environmental Regulations: Stronger regulations in the West ensure responsible sourcing but increase costs, making it harder to compete with China’s lower-cost model.
The race to secure rare earths is intensifying as demand is projected to triple or quadruple by 2040, driven by clean energy and technology needs. Countries with robust reserves and refining capabilities will hold significant economic and political influence in the coming decades.
Conclusion: A Call to Dig Deeper
Rare earth minerals are the backbone of modern technology, yet their supply chain is fraught with challenges, from environmental risks to geopolitical tensions. China’s dominance underscores the urgency for other nations to develop resilient, sustainable supply chains. As readers, consider the implications: How can we balance technological progress with environmental responsibility? What role should international cooperation play in reducing reliance on a single supplier? Exploring these questions is crucial as we navigate a future where rare earths will only grow in importance.
For further reading, visit USGS Rare Earths Statistics or explore the International Energy Agency’s Critical Minerals Outlook to deepen your understanding of this critical topic.
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