A Problem Is Lurking Around The Corner
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Rare earth elements (REEs) are a group of 17 chemically similar elements. These elements are found and mined in the Earth’s crust. REE have unique magnetic, luminescent, and electrochemical properties, they are used in a wide range of technologies, such as smartphones, wind turbines, electric vehicles, and even military equipment. Some examples of REE include cerium, dysprosium, and yttrium. REEs have become strategically important materials recently due to these unique properties, applications, and growing demand.
Of the 17 rare earth elements, some are considered more important than others. The most important REEs are:
- Neodymium (Nd): used in the production of magnets for wind turbines, electric vehicles, and other renewable energy technologies.
- Dysprosium (Dy): used to improve the temperature stability of neodymium magnets.
- Europium (Eu): used in the production of TVs and energy-efficient lighting.
- Terbium (Tb): used to improve the performance of fiber-optic networks.
- Yttrium (Y): used in the production of phosphors for TVs and energy-efficient lighting.
- Lanthanum (La): used in the production of catalysts for gasoline refining and in hybrid car batteries.
- Praseodymium (Pr): used to produce special alloys and glasses with unique optical properties.
Now, the reality is that the largest reserves of rare earth elements are found in China, then this is followed by Russia, then the United States, Brazil, and India. However, China is currently the dominant producer of REEs, accounting for more than 80% of global production. It also important to note that other major producers include Australia, Russia, and the United States.
REE Got Renewables By Their Throat
REEs play an important role in several aspects of renewable energy technology production. REEs are used in the field of renewable energy in:
- Wind turbines: REEs are used to make powerful, permanent magnets for wind turbines. Neodymium and dysprosium are particularly important in this application.
- Electric vehicles: REEs are used in the production of electric motors and battery components for EVs. Neodymium and dysprosium are again key elements.
- Solar energy: REEs are used in the production of photovoltaic cells and the manufacture of energy-efficient lighting. Europium, terbium, yttrium and lanthanum are used in this field.
- Geothermal energy: REEs are used in the production of heat exchangers and other components for geothermal power plants.
- Nuclear energy: REEs are used in the production of control rods and other components for nuclear power plants.
All these applications have REEs in commo due to their magnetic properties and ability to improve energy efficiency. In general, finding substitutes for REEs in these technologies is challenging, as REEs have properties that are difficult to replicate. However, with the increasing demand for REEs and the concerns about supply chain risks, it is important to find sustainable alternatives to these elements.
Finding substitutes for REEs in these technologies is challenging, as REEs have unique properties that are difficult to replicate.
Recycling REEs from the end of life products like batteries, wind turbines, and other electronic devices, can also be an effective way to reduce the dependency on REEs and decrease the environmental impact of mining them.
Risks and Opportunities
Geopolitics can have a significant impact on the REEs industry within the renewable energy context, as the majority of REEs are mined and produced in just a few countries.
As we mentioned before, China is currently the dominant producer of REEs, accounting for over 80% of global production. However, China has recently been tightening its export policies and increasing its domestic consumption, which has led to concerns about supply chain risks. This has also led to increased investment and exploration in countries like Australia, and the United States to develop their own resources.
Moreover, the heavy reliance on a single supplier, such as China, can lead to price volatility and supply disruptions that can affect the cost and availability of REEs for renewable energy technologies. In addition, trade tensions between countries such as USA, China and Russia can also impact the REE industry, as tariffs and other trade barriers can make it more difficult and expensive to import REEs from certain countries. Due to the environmental impact of mining REEs, some countries may have stricter regulations or bans on REE mining, which can affect the availability of REEs for renewable energy technologies.
All these factors can lead to at least some uncertainty in the REE market, which can make it difficult for renewable energy companies to plan for the long-term and can affect the cost and availability of REEs for renewable energy technologies.
Despite the challenges, there are also opportunities within the REEs industry. The growing demand for REEs in renewable energy technologies presents an opportunity for companies that can supply REEs at a competitive price and on a reliable basis. Exploration and development of new REE sources can create opportunities for mining companies and other businesses involved in the REE supply chain. There may also be opportunities for companies that specialize in recycling REEs from end-of-life products like batteries and wind turbines.
Despite the challenges, there are also opportunities within the rare earth elements (REEs).
As mentioned before, finding substitutes for REEs in these technologies is challenging, but if successful, it can provide an opportunity for companies to produce products that are more sustainable.
The need for new and more efficient technologies to extract and process REEs can lead to innovation and the development of new technologies that can reduce the environmental impact of REE mining and processing.
