Rare earth elements (REEs) have become indispensable in modern technology due to their exceptional magnetic, phosphorescent, and catalytic properties. These elements are key components in devices we use daily, from smartphones and LED lights to wind turbines and electric vehicles. At present, there are no effective substitutes for REEs, making their availability critical for technological and renewable energy advancements.
These elements play vital roles in high-tech applications. For example, neodymium powers the magnets used in electric vehicles and wind turbines, while europium and terbium are integral to LED lighting and display screens. Lanthanum, meanwhile, is essential for catalytic converters, which reduce vehicle emissions. As global technology demands grow, the importance of these materials continues to rise, yet their limited availability poses challenges. Over the past 15 years, the demand for REEs has doubled and is projected to grow significantly by 2030, driven by the widespread adoption of green technologies.
REEs are a group of 17 metallic elements, including the lanthanides, scandium, and yttrium, and are categorised into light and heavy REEs based on atomic weight. Although these elements are abundant in the Earth’s crust, they are rarely found in concentrations high enough to be mined economically. China dominates global production, accounting for approximately 70% of the supply. This concentration poses risks to international supply chains, particularly during geopolitical tensions. Efforts to diversify sources include exploring unconventional materials like coal ash, which contains recoverable amounts of REEs, as demonstrated by recent studies in the United States.
These elements are essential for creating efficient and sustainable technologies. In consumer electronics, they are used in the magnets of smartphone speakers, camera lenses, and computer hard drives. Their applications extend to renewable energy and defence technologies. For example, neodymium is crucial for wind turbines and electric vehicles, while dysprosium enhances magnet durability under high temperatures. Lanthanum is a key material in hybrid vehicle batteries, and terbium and europium enable bright, energy-efficient lighting.
The demand for REEs is further amplified by their role in combating climate change through green technologies. They are integral to electric vehicles, wind turbines, and solar panels, all of which require REEs for improved performance and efficiency. The NdFeB magnet market, driven by the electric vehicle sector, is expected to grow significantly, with China leading global efforts in production and application.
Sustainability is a pressing concern for REEs, given their rising demand. Recycling and reusing materials from products like batteries, wind turbines, and EV motors offer a viable path forward. For instance, recycling lithium-ion batteries can recover valuable materials, reducing reliance on mining. Similarly, the reuse of large magnets from retired wind turbines or EV motors can offset the need for new resources. Companies such as Tesla and BMW are investing in closed-loop recycling systems to address this challenge.
Improving material efficiency in solar PV systems and developing advanced recycling technologies, such as bioleaching, could further enhance the sustainability of REEs. These initiatives aim to streamline recycling processes, reduce environmental impact, and support the transition to a greener economy.
Rare earth elements are a cornerstone of modern and renewable technologies, playing a pivotal role in achieving net-zero emissions by 2050. The increasing demand for REEs underscores the urgency of sustainable practices, including recycling and innovative extraction methods. By prioritising these efforts, we can secure the materials necessary for a sustainable and technologically advanced future.
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.
