The rare earth elements (REE) are a group of seventeen metallic elements. These include the fifteen lanthanides found on the periodic table, along with scandium and yttrium. While these elements may not be well-known to many people, they play a crucial role in modern technology and various industries.
Rare earth elements are indispensable in the production of numerous high-tech devices. According to the U.S. Geological Survey’s “Going Critical” news release, REEs are vital components in more than 200 different products. They are especially important in high-tech consumer goods such as mobile phones, computer hard drives, and hybrid or electric vehicles. They are also used in flat-screen monitors and televisions. In the defence sector, REEs are essential for systems like electronic displays, guidance systems, lasers, and radar and sonar systems. Although the actual quantity of REEs in these products may be minimal in terms of weight or volume, their absence would make it impossible for certain devices to function properly. For instance, REE-based magnets may only form a small portion of a device’s weight, yet they are essential for enabling the operation of spindle motors and voice coils in both desktop and laptop computers.
In the early 1990s, global production of REEs was more distributed. In 1993, China produced around 38 percent of the world’s supply, while the United States contributed 33 percent. Australia was responsible for 12 percent, and Malaysia and India each accounted for five percent. Other nations, including Brazil, Canada, South Africa, Sri Lanka, and Thailand, contributed smaller amounts to the global market.
However, by 2008, China had significantly increased its dominance in REE production, accounting for more than 90 percent of the world’s supply. By 2011, China’s share rose to 97 percent. Since the 1990s, the supply of REEs has become a more pressing issue as China began to adjust the quantity of REEs it permits for production and export. Additionally, the Chinese Government introduced restrictions on the number of domestic and Sino-foreign joint-venture companies that were allowed to export REEs from China.
The increasing concentration of REE production in China has raised concerns about supply chains and the availability of these crucial materials for industries around the world.
Pensana plc (LON:PRE) explores and mines neodymium, praseodymium, and rare earth minerals. The Company’s flagship assets are the Saltend rare earth refinery project in the United Kingdom and Longonjo neodymium and praseodymium (NdPr) Project in Angola.
