Rare Earth Elements: Global Distribution and Importance

Rare earth elements (REEs) are a group of 17 metals that play a crucial role in advancing a greener economy. As demand for these elements grows, the location and availability of their reserves have become increasingly significant.

What Are Rare Earth Metals?

REEs, also known as rare earth metals or lanthanides, include 17 soft, silvery-white heavy metals: lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu), scandium (Sc), and yttrium (Y).

Although scandium and yttrium are not part of the lanthanide series, they are often included with REEs due to their occurrence in the same mineral deposits and their similar chemical properties. Despite their name, rare earth metals are relatively abundant in the Earth’s crust. However, they are seldom found in concentrated deposits, making their extraction more challenging.

Applications of Rare Earth Elements

REEs are vital for various modern technologies, particularly in the production of catalysts and magnets used in both traditional and low-carbon technologies. Other significant applications include the manufacturing of special metal alloys, glass, and high-performance electronics.

Neodymium (Nd) and samarium (Sm) alloys are particularly valuable for creating strong magnets that can withstand high temperatures, making them ideal for mission-critical electronics and defense applications.

Global Demand for Rare Earth Elements (2019)

- Permanent Magnets: 38%

- Catalysts: 23%

- Glass Polishing Powder and Additives: 13%

- Metallurgy and Alloys: 8%

- Battery Alloys: 9%

- Ceramics, Pigments, and Glazes: 5%

- Phosphors: 3%

- Other: 4%

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The strongest known magnet, an alloy of neodymium, iron, and boron, is enhanced by other REEs like dysprosium and praseodymium to modify its properties. These magnets are essential for hybrid and electric vehicle engines, wind turbines, hard disks, portable electronics, and cell phones, underscoring the critical role of REEs in modern technology.

For instance, one megawatt of wind energy capacity requires 171 kg of rare earths, a U.S. F-35 fighter jet needs approximately 427 kg, and a Virginia-class nuclear submarine uses nearly 4.2 tonnes.

Global Reserves of Rare Earth Minerals

China leads the world in both mine production and reserves of rare earth elements, with 44 million tons in reserves and an annual mine production of 140,000 tons. Vietnam and Brazil follow with 22 million and 21 million tons of reserves, respectively, though their production levels are significantly lower at only 1,000 tons per year each.

Despite having 1.5 million tons in reserves, the United States remains largely dependent on China for refined rare earths.

Ensuring a Global Supply

China’s dominance in the rare earth industry is the result of years of strategic research and industrial policy, allowing the country to secure a superior position in the global market. As a result, China currently controls a significant portion of the global supply of these valuable metals.

While China’s share of global production has decreased from 92% in 2010 to 58% in 2020, the country still maintains a strong grip on the supply chain, producing 85% of the world’s refined rare earths in 2020. Production quotas in China are granted to only six state-run companies:

1. China Minmetals Rare Earth Co.

2. Chinalco Rare Earth & Metals Co.

3. Guangdong Rising Nonferrous

4. China Northern Rare Earth Group

5. China Southern Rare Earth Group

6. Xiamen Tungsten

As global demand for REEs continues to rise, the world will need to explore and develop these reserves further. The current distribution of REEs provides insight into potential future sources of these critical elements.