Disrupting China's Monopoly Over Rare Earth Elements
In the rapidly evolving world of clean energy technology, rare earth elements (REEs) such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb) play a crucial role. These elements are key to the magnets in advanced electric motors, making them essential for electric vehicles (EVs) and advanced robots, as well as wind turbines and other clean energy technologies [1][2].
China currently dominates global supply chains for both mining and refining of REEs, a situation that has led to concerns about supply reliability and geopolitical risk [1][2][4][5]. To address this dependence, several strategies and alternative sources are emerging:
- Diversifying mining and refining locations: Countries like the United States (notably MP Materials at Mountain Pass Mine), Australia, Brazil, and some African nations are expanding their rare earth production capacities to provide alternative supply chains [1][5]. The U.S. government has increased strategic investments, such as a $540 million commitment to critical mineral infrastructure and Department of Defense involvement with US-based producers, aiming to strengthen domestic supply chains [5].
- Developing recycling and circular supply chains: Recycling REEs from used electronics, EV batteries, wind turbines, and magnets is increasingly seen as vital. Recycling can help meet growing demand—expected to triple by 2035—with potential to reduce reliance on primary mining and mitigate geopolitical risks [2][4]. However, challenges remain in cost-effective magnet dismantling and recovery technologies [4].
- Material substitution and efficiency improvements: Although substitution of REEs with alternative materials such as copper coil magnets is being explored, growth in EV adoption and renewable energy installation is currently outpacing substitution efforts, making REEs highly valuable and still necessary [2].
- Strategic stockpiling and policy actions: Governments have taken measures including export restrictions, stockpiles, and funding to support domestic capabilities and incentivize alternatives to China-based supply chains [5].
Discussions of a rare earth processing plant in Nebraska at NioCorp's Elk Creek deposit are underway, and companies are scrambling to lessen their dependence on rare earths [6]. The need for political willpower, either in the U.S. or overseas, to support and fund alternatives to China's monopoly on supply cannot be overstated. As the world moves towards a more sustainable future, diversifying REE supply chains will be essential to maintain progress and ensure energy security.
References: [1] https://www.forbes.com/sites/jamesconca/2020/07/17/the-rare-earth-element-supply-chain-and-why-it-matters-to-the-clean-energy-revolution/?sh=71b231866366 [2] https://www.sciencedirect.com/science/article/pii/S0960148117301873 [3] https://www.bbc.com/future/article/20210114-the-strange-world-of-rare-earth-elements [4] https://www.sciencedirect.com/science/article/pii/S0301050219301879 [5] https://www.usgs.gov/centers/national-assessment-critical-mineral-resources/critical-minerals-list [6] https://www.reuters.com/business/energy/nio-corp-says-talks-ongoing-with-us-government-over-rare-earth-plant-2021-09-10/
- To reduce dependence on China's dominance in rare earth element (REE) supply, initiatives like the proposed rare earth processing plant in Nebraska by NioCorp are crucial, as they aim to establish new sources of REEs through the exploitation of the Elk Creek deposit.
- As technological advancements indefinitely expand the applications of REEs, particularly in the domain of clean energy technology and defi (distributed ledger technology), the development of cost-effective recycling and circular supply chains becomes increasingly vital to alleviate the burdens of primary mining and mitigate geopolitical risks.
