Crucial resources shaping our technological future

The rare earth elements, a group of 17 metallic elements located in the middle of the periodic table, possess unique fluorescent, conductive, and magnetic properties. These characteristics make them highly valuable when alloyed in small quantities with more common metals like iron. Although geologically abundant, rare earth elements are seldom found in high concentrations and are often mixed with one another or with radioactive elements such as uranium and thorium. This makes their extraction and purification complex and environmentally harmful, generating toxic waste and radioactive by-products.

In modern society, rare earth elements have become indispensable due to their wide range of applications in everyday technologies. They are found in smartphones, LED lights, hybrid cars, wind turbines, and electric vehicles, among other uses. Despite their growing importance, the reliance on rare earths largely goes unnoticed by the average consumer.

The term “rare earth” originated in the late 18th century when an unusual black rock was discovered in Ytterby, Sweden. This ore was named “rare” due to its unfamiliarity and “earth” as it was a type of rock dissolvable in acid. Over time, the identification and separation of rare earth elements became a prestigious endeavour among European chemists, though it remained a difficult task.

In the late 19th century, Carl Auer von Welsbach, a student of the famous chemist Robert Bunsen, began working with rare earth elements, eventually developing a gas mantle that utilised their incandescent properties. This discovery led to the mass production of gas mantles and the creation of ferrocerium, a material used in cigarette lighters and automotive ignition devices, marking the first commercial use of rare earth elements.

The 20th century brought new significance to rare earth elements, particularly with advances in atomic physics. They played a crucial role in the development of nuclear technology, as rare earths needed to be removed from uranium to facilitate nuclear reactions. This led to the establishment of the Ames Laboratory in the United States, which became a leading research facility for rare earths.

The discovery of rare earth deposits at the Mountain Pass Mine in California in the 1950s marked a turning point in their commercialisation. The mine supplied rare earths for the production of colour televisions and later expanded to include other elements crucial for various technologies. During the Cold War, rare earth elements were integral to military advancements, including the development of powerful magnets for radar systems and materials for fighter planes.

As the global economy evolved, the production and manufacturing of rare earth elements shifted, particularly in the 1980s and 1990s. The United States, once a leader in rare earth production, saw much of its manufacturing move overseas to countries with lower labour costs and fewer environmental regulations. This shift resulted in lower prices for consumers but led to job losses and factory closures in the U.S. Meanwhile, countries like Japan and the so-called Asian Tigers focused on importing raw materials to manufacture products for global export.

Looking ahead, rare earth elements are poised to remain crucial, particularly in green technologies and efforts to combat climate change. The demand for elements used in wind turbines, electric vehicles, and other sustainable technologies is expected to grow. However, the environmental and ethical challenges associated with their production remain pressing concerns. Some proposed solutions include developing new mining techniques, designing more sustainable technologies, and improving recycling methods to reduce reliance on newly mined materials.

The future of rare earth production is also closely tied to decisions made by the Chinese government, as China currently dominates the industry. There is potential for China to relocate the most polluting aspects of rare earth production to other countries, raising concerns about the environmental and social impacts. Ultimately, the sustainable and ethical production of rare earth metals will depend on consumers and manufacturers’ willingness to support more responsible practices, along with effective oversight and regulation.

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.

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