Rare Earth Elements: A Strategic Investment for the Future

Rare earth metals, comprised of 17 elements, are found only rarely in nature, where their concentration can reach high concentrations. As they are difficult to separate, sophisticated processing methods must be utilized - which can be costly and environmental damaging.

China was until recently responsible for 95% of rare earth production worldwide; however, recently they have eased up on exports.

1. Electric Vehicles

Rare Earth Elements (REEs), sometimes referred to as the "seeds of technology", play an indispensable role in today's emerging technologies. With their magnetic, phosphorescent, and catalytic properties - including increasing permanent magnet strength in electric motors as well as improving LED lighting efficiency and batteries' life expectancies - REEs provide a boost for new innovations.

Rare earth elements (REEs) can be hard and expensive to extract, making their use an indispensable component in green technology products and mining companies' supply chains. With increasing demand for REEs due to climate collapse mitigation efforts and electric vehicle switching driving growth in demand for magnet-grade neodymium and dysprosium for magnet use.

As demand for rare earth elements continues to increase, countries need strategies that ensure sustainable supply. One such solution would be developing alternative battery chemistries which allow EV manufacturers to decrease their reliance on REE-rich minerals by opting for lighter materials with fewer elements present.

Recycling will also help decrease the need for new mining operations, with some REEs such as neodymium and praseodymium available from recycled electronic waste. One study revealed that 30 percent of future demand could be met through recycling from this source alone.

Though China now dominates the global rare earths market, that wasn't always the case. Over the years, economic forces pushed production and manufacturing operations around the globe, for instance Magnequench was owned by American investors but moved to China in 1995 where Chinese firms bought controlling shares to gain entry and take control over supply - eventually becoming the dominant supplier.

https://sv.wikipedia.org/wiki/S%C3%A4llsynta_jordartsmetaller

2. Energy Storage

Rare earth elements are crucial components of renewable energy industries. Compounds like neodymium and praseodymium (exposed at Lynas Rare Earths Ltd) were once used only in gas lamps but are now employed to make some of the world's strongest magnets that make up essential components in electric vehicles and wind turbines.

Minerals play an essential role in other emerging technologies as well. Phosphorescent and catalytic properties of yttrium and erbium helped color television in the 1980s; while neodymium, dysprosium, lanthanum enhanced signal strength of fiber-optic cables used to transport internet data and long-distance phone calls during the 1990s;

China's dominance as an ore to finished product supplier isn't just an abstract geopolitical trend; it carries profound technological and security ramifications for industrialised countries on both sides of the Pacific. A single country exploiting strategic raw materials in trade negotiations should alarm any policymaker invested in maintaining a secure and sustainable future.

Japan learned first-hand in 2010 the perils of being over-reliant on one rare earth supplier, when an incident between Chinese and Japanese boats led to an embargo that drove prices and demand up dramatically, prompting companies to scramble for alternatives as quickly as possible.

To avoid repeating this scenario, the US must reshore its rare earths supply chain - and that means mining only being one step in this complex process; refining is also required. In order to build domestic capacity MP Materials is working closely with Shenghe Resources--the Chinese firm responsible for processing, distributing and refining--to develop a separation facility in the US.

3. Electronics

Rare earth elements have become indispensable components of green technology since their introduction. Used to produce powerful magnets for applications ranging from computers and loudspeakers to loudspeakers and wind turbines, rare earth elements play an essential role in helping reduce greenhouse gas emissions enough to avoid climate collapse - as well as powering new battery systems on electric vehicles - thus becoming essential elements in sustainable mobility solutions. Both the US and EU have classified rare earths as critical or strategic raw materials with significant economic significance but a high supply risk profile.

However, when it comes to mining rare earths and processing them into components, China has long dominated this industry. China accounted for 80% of exports in 2019 alone. Their monopoly can be seen from initial mining through production of components or even final products; this dominance being enabled by low production costs, company takeovers, subsidies from governments as well as technology transfers.

Chinese dominance poses significant implications for global economies and security, especially given the ongoing trade war with Beijing. The idea that one state can use control of critical materials as leverage against its trading partners should be deeply troubling to both political and economic decision makers alike.

However, companies have developed innovative methods of extracting and processing rare earths to lower costs while improving environmental safety. Nevada-based MP Materials developed a groundbreaking process which requires less energy-intensive than traditional methods and no hazardous acids or fumes - earning them a grant from the Department of Defense for building a rare earth separation facility in Texas and working on joint project with Lynas (an Australian rare earth processing plant operator) on another one in Malaysia.

4. Aerospace

Rare earth elements (REEs) are essential components of modern technologies, from green energy and medical technologies to defense, telecom and transportation systems. They play a critical role in shaping today's emerging technologies and helping enable green energy, medical interventions and more. Magnetic, phosphorescent, and catalytic properties give permanent magnets their distinct magnetic, phosphorescent, and catalytic qualities that boost magnet strength significantly - an advantage particularly useful in permanent car motor motors. These materials retain their magnetic properties even at extremely high temperatures, enabling them to be used effectively in radar and sonar devices. REEs can also be combined with aluminum to form lightweight, strong and conductive metals such as yttrium-aluminum-garnet for laser rangefinders for guided weapons. While REEs may not be rare as their name implies, extracting, processing, and refining them is often difficult due to various technical and environmental considerations.

Mining REEs can produce toxic byproducts that pollute air and water supplies, deplete resources and harm ecosystems. Tailings produced when extracting REEs from their host rock contain chemical residue that could seep into groundwater supplies and pollute rivers and waterways.

Manufacturers can engineer their products to use less rare earths by either engineering them out or substituting other materials in place of them. Some EV battery manufacturers have already started developing motors with less rare earth elements; other approaches may include using different magnets that don't require as many rare earth elements or altering how those magnets are designed.

The Trump administration is working towards building up domestic supplies of rare earths and other critical minerals used in battery production, such as lithium and cobalt. Last year, Vice President Joe Biden initiated a project to assess gaps in U.S. production capacity as well as build national supply chains by finding alternative ways of extracting, processing and refining rare earth elements (REE).

https://canvas.instructure.com/eportfolios/387983/investingingoldfordummieseodd744/Making_an_Investment_in_Precious_Metals

5. Automotive

As climate change and fossil fuel costs escalate, it's no secret that the United States wants to regain its leading position in supply chains for rare earth elements used for electric vehicle manufacturing, battery production, renewable energy systems and technology manufacturing. But this goal can be difficult to attain.

China dominates REEs from ore to finished product, due to low production costs, strategic company takeovers, subsidies from government support programs (subsidies), and lax environmental regulations. On the other hand, US has failed to invest enough in basic and application research related to these valuable metals since the 1980s; most material mined here in America is shipped abroad for processing; thus any attempt at reshoring would likely take years before reaching full capacity.

Oil refineries are one of the major users of REEs, employing them in their production of gasoline and diesel using fluid catalytic crackers. This energy intensive process contributes to environmental impacts associated with petroleum transportation.

Reducing greenhouse-gas emissions enough to avoid catastrophic climate collapse has created demand for new energy sources, including wind turbines and electric vehicles, that generate power efficiently while at the same time saving resources and the planet from environmental collapse. Magnets and batteries utilizing rare earth elements (REEs), including Neodymium and Dysprosium are increasingly in demand; recycling these materials is limited and expensive, so having reliable sources of raw material such as these is crucial - one promising player in this space has recently begun construction on an innovative yet environmentally-friendly REE separation and recovery plant in the US that should provide reliable raw materials to support business operations and manufacturing operations - one promising players in this space is currently underway constructing an innovative yet environmentally-friendly REE separation and recovery plant that should provide reliable sources of raw material - one promising player in this space has begun construction of an innovative, environmentally-friendly REE separation and recovery plant here in America which would serve business needs of magnets and batteries from REE material sources as part of manufacturing operations; in turn fueling growth for magnets and batteries produced from REE materials is limited and expensive so reliable sources of raw material must come from somewhere. Thankfully one promising player in this space is currently underway with plans to establish such an innovative, environmentally friendly REE separation and recovery plant to serve US business interests of REE recovery in US as source.