Introduction
The rare earth elements (REEs) are a group of 17 metals that are vital to the production of many emerging clean energy technologies, including wind turbines, electric vehicles, and energy-efficient lighting. However, the world now faces a potential rare earth elements crisis due to China's dominance over REE mining and supply. This crisis threatens to limit the global transition to renewable energy and a clean energy future.
What Are Rare Earth Elements?
The 17 rare earth elements are scandium, yttrium, lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium and lutetium.
While abundant in total quantities in the earth's crust, REEs are often dispersed making them difficult to mine and extract economically. Their unique magnetic, luminescent and electrochemical properties make REEs irreplaceable for many clean energy technologies.
China's Monopoly on Rare Earth Mining and Processing
China currently produces over 70% of the world's supply of rare earth elements. This near monopoly is due to China's abundant REE deposits and its relatively lax environmental regulations that allow lower cost mining.
No other single country comes close to China's REE production. The United States produced no rare earth oxides in 2021 as it lacks developed rare earth mines.
Why China's Monopoly is Problematic
China's dominance over rare earths supply poses major risks to the global clean energy transition including:
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Supply restrictions - China has restricted rare earth exports during past diplomatic disputes. Further restrictions could severely impact REE availability.
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Price volatility - With most supply centered in China, rare earth prices can fluctuate wildly based on Chinese policies. Price instability threatens clean energy technology growth.
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Slower clean energy adoption - Limited access and unpredictable pricing reduces incentives for clean energy investment outside China. Renewable energy development could stall.
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Geopolitical leverage - China's near monopoly grants it leverage over other nations dependent on rare earths, allowing it to potentially advance its broader geopolitical goals.
The Vital Role of Rare Earths in Clean Energy
REEs play a crucial role in enabling many emerging clean energy technologies:
Wind Turbines
Neodymium and dysprosium are used to make the powerful permanent magnets inside wind turbine generators. They enable turbines to operate at high efficiencies.
Electric Vehicles
Motors and batteries in electric vehicles use neodymium, praseodymium, dysprosium and terbium. These REEs enable weight reductions and extend driving range.
Energy Efficient Lighting
Europium, terbium and yttrium are used in phosphor coatings that make LED lights possible. They help lighting become more energy efficient.
Rare earths are irreplaceable in enabling these transformative technologies. A lack of access to REEs would significantly slow their adoption.
Diversifying Supply to Solve the Crisis
To address the rare earth crisis and prevent impacts on the global clean energy transition, nations must diversify REE supply chains beyond China including through:
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New mines - The United States, Australia, and other nations must invest in new rare earth mines. Although expensive to develop, more mines reduce dependence on China.
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Recycling - Recycling rare earths from technology waste streams will provide additional supply. However, recycling alone cannot meet demand.
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Alternative technologies - Continued research into alternative technologies that minimize rare earth use could provide technological solutions. But alternatives remain far off.
A combination of these solutions is required to diversify supply and solve the rare earth elements crisis. But it will take years to implement them. Time is running short to secure the rare earths needed for our clean energy future.
Conclusion
Rare earth elements are essential to key renewable energy technologies like wind turbines and electric vehicles. China currently dominates global REE mining and supply. This concentration of supply threatens to constrain the global transition to clean energy. Diversifying supply chains and reducing dependence on China is crucial to avoid a rare earth crisis. The future of affordable, accessible clean energy for all hangs in the balance.