As defined by IUPAC, rare
earth elements ("REEs") or rare
earth metals are a set of seventeen chemical elements in the periodic table,
specifically the fifteen lanthanides plus scandium and yttrium. Scandium
and yttrium are considered rare earth elements since they tend to occur in the
sameore deposits as the
lanthanides and exhibit similar chemical properties
Terms like "rare metals" and "rare elements"
have no clear definition, and often include REEs. What makes these metals them
vitally important to our economy is that they enable modern technologies. For
example, rare earth magnets are much more powerful than ferrite ones of similar
sizes, which enables miniaturization of things like motors.
Source: US Consumer Product Safety Commission
These magnets are used in
hard drives, cd players, cell phone vibrating alerts, and headphones. More
interesting is their uses in energy and defence applications. Wind turbines use
around 1000kg of neodymium per megawatt; smart missiles use them for steering;
and they provide the motors for electric cars. Rare earth phosphors are used in
low-energy lighting to provide more natural illumination.
Source:
planbeconomics.com
Lithium is another important metal, which traditionally has been
used in glass and ceramics, and as a lubricant. Lithium demand is skyrocketing
because of its use in rechargeable batteries for both transportation and
electric grid enhancement. These uses are also driving increased demand in
other associated materials, like cobalt, vanadium and more.
I like to use the analogy that these metals are like yeast in
bread. In terms of quantity and cost, they often contribute very little, but if
you don't have them, you get crackers.
Source: US Department of Energy
Rare Metals and REE are difficult to extract in an
economically-viable and environmentally-sound manner. Furthermore there are
major differences between heavy and light REE. Comment ???
Mining rare earths is very different from other metals. It is a
multistep process that, if not executed properly, can have significant
externalities. Rare earths are often found along with radioactive elements like
thorium, which requires appropriate handling and storage. Interestingly,
thorium can also be used as an excellent nuclear power fuel. Modern extraction
processes like the ones being developed in the US and Australia are carried out
in an environmentally responsible manner. China, which produces the lion's
share of these metals, has historically had poor enforcement of its
environmental regulations. This is changing as China consolidates its control
over the rare earth industry.
Light rare earths are those found to the "left" of
Europium or Gadolinium (depending on who you ask), while the
"heavies" are found to the right (along with Yttrium). The rare
earths are found all together, but with different concentrations. Lights are
more common, and heavies are more rare. However, heavies, like Dysprosium are
of great importance.
Light rare earths are those found to the "left" of Europium or Gadolinium (depending on who you ask), while the "heavies" are found to the right (along with Yttrium). The rare earths are found all together, but with different concentrations. Lights are more common, and heavies are more rare. However, heavies, like Dysprosium are of great importance
The US used to be a major producer of REE though now most of these
resources are produced in China. How did that happen and what has been the
effect of this shift in production? Are there countries other than China that
benefit from the importance of REE? Will we see new cartels like OPEC form to
maintain prices and supply?
While China produces nearly all the world's rare earths, it has
only a third of the reserves. Early on, the Chinese government at the highest
levels recognized the strategic importance of rare earths, and used various
methods to support the domestic industry. The former premier, Deng Xiaoping is
famously quoted as saying that "The Middle East has oil, and China has
rare earths." They achieved their dominance through poor environmental stewardship,
trade intervention, and the fact that the largest source of rare earths is not
a rare earth mine, but rather an iron mine that produces rare earths as a
by-product.
Source: energydispatches.com
The effect has been that, until now, producing elsewhere has not
been feasible. However, demand has been growing within China, and so export
restrictions have been put in place. As a result, prices of the rare earths
have fluctuated wildly, and the world is waking up to the fact that dependence
on a single source of economically critical materials is a dangerous situation.
Currently, no other country benefits as much as China, which has created tens
of thousands of rare earth scientists.
As the US brings on renewed production of rare earths, and other
mines in Australia, Canada and elsewhere begin operating, we will see a shift
towards a more diverse supply. However, China will continue to be a major
player. It has attempted to purchase international companies with reserves, and
is a major consumer of these materials. The Chinese government has also started
a "Trade Association" which will set production quotas and help to
control pricing, which is quite reminiscent of OPEC's activities.
China has had a quota on rare earths for a number of years,
despite the practice not being allowed under their accession to the World Trade
Organization. However, what caught the world's attention in 2010 was the
geopolitical aspect of resource control. China has long standing territorial
disputes with Japan over the East China Sea, and with Southeast Asia over the
South China Sea, largely because of oil reserves.
In 2010, the Japanese arrested a Chinese fishing crew for entering
disputed territory, and reports emerged about shipments of rare earths no
longer leaving China for Japan which depends on these materials for its
technology industry. Subsequent statements were released by US Secretary of
State Hilary Clinton over America's support of Southeast Asia in the South
China Sea. Soon, rare earths stopped being shipped to the US. This situation,
which the Chinese government officially denied influencing, lasted for a couple
of weeks, until Japan relented and sent the captain of the fishing trawler
home.
Source : 1. wikipedia
2. kwrintl.com
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