What are rare earths and why are they so important?

Move over, iron and aluminum.

Rare earth elements are critical for everyday tech, making them extremely valuable. Manufacturers rely on rare earths to produce smartphones, electric vehicles, and renewable energy components.

Though rare earth elements are abundant, they’re difficult to mine and process, leaving government officials looking for ways to increase capacity. Whoever controls rare earths will have an immense amount of political power, so China, the United States, and other producers are racing to meet the growing demand for these minerals.

Learn more about what rare earth elements are, why they're so special, and what role they play in geopolitical relations.

What are rare earth elements?

A rare earth element is one of 17 metallic substances found on the Periodic Table. Despite their name, these substances aren't all that rare. They're just difficult to extract.

These are the 17 minerals classified as rare earth elements:

• Lanthanum
• Cerium
• Praseodymium
• Neodymium
• Promethium
• Samarium
• Europium
• Gadolinium
• Terbium
• Dysprosium
• Holmium
• Erbium
• Thulium
• Ytterbium
• Lutetium
• Scandium
• Yttrium

Properties that make rare earths special

Rare earth elements have some physical and chemical properties that make them extremely useful for manufacturers:

• Magnetism: Neodymium, samarium, and dysprosium have powerful magnetic properties. For example, a magnet made of neodymium can store approximately 18 times more energy than a similarly sized iron magnet. When combined with other metals, magnetic rare earth elements retain their strength and gain durability. 
• Electrical properties: Certain rare earth minerals are highly conductive, which means they allow electrical currents to move freely. This is critical for manufacturing electronics, as high levels of conductivity are associated with efficient energy transfer and storage.
• Luminescence: Luminescent substances give off light when exposed to electromagnetic radiation. Some rare earth elements, including erbium and yttrium, are luminescent, making them essential for manufacturing lights and lasers.

Common uses of rare earth elements

Manufacturers use rare earth elements for these applications:

• Electronics: Due to their luminescence, some rare earth elements are used to make phosphors for digital scoreboards, smartphones, and televisions. Phosphors emit light when exposed to electromagnetic radiation, so they're useful for making screens. You can also find rare earth elements in hard drives, digital cameras, and LED lights.
• Defense and aerospace: Magnets made from rare earth elements are found in lasers, submarines, unmanned aerial vehicles (UAVs), and military aircraft, making them critical for the defense and aerospace industries.
• Renewable energy: Many wind turbines contain magnets made from iron, boron, and neodymium. Manufacturers use praseodymium and neodymium to strengthen the magnets, along with terbium and dysprosium to reduce the risk of demagnetization. Rare earth elements are also used to make solar panels and electric vehicles.
• Medical technologies: Rare earth elements are found in medical equipment, antitumor agents, and the medicines used in kidney dialysis. Gadolinium is also used as a contrast material in magnetic resonance imaging (MRI) and computed tomography (CT) scanning.

Where do rare earths come from?

While China, the United States, and Burma are the top three rare earth producers in the world, China has a significant advantage. It mines approximately 270,000 metric tons of rare earth elements per year, compared to 45,000 metric tons for the United States and 31,000 metric tons for Burma.

These countries also have substantial rare earth deposits:

• Australia
• Nigeria
• Thailand
• Russia
• Madagascar
• India

Rare earth metals typically occur in mineral ores, such as xenotime, bastnasite, loparite, and monazite. Deposits are small and spread all over the world, making it difficult for mining companies to extract them in the required quantities.

Because rare earth elements are found in mineral ores, they have to be separated during the refining process. Rare earth elements must also be purified into oxides or salts before they can be used for manufacturing.

Environmental and geopolitical challenges

Mining and processing activities have a significant impact on the natural environment. Some of the most common environmental challenges include:

• Water contamination. Mining and refining use a tremendous amount of water. These activities can also cause toxic chemicals to leach into the ground, contaminating local water supplies. Radium and thorium, which are radioactive, can also cause water contamination.
• Ecosystem disruption. Mining can destroy animal and plant habitats, leading to reduced biodiversity. When mining companies remove vegetation and topsoil, they also contribute to an increased risk of soil erosion.
• Air pollution. Open-pit mining sometimes releases toxic chemicals and/or harmful particles into the air. Processing plants may also emit radioactive elements and heavy metals, putting the health of local residents at risk.
• Greenhouse gas emissions. Mining and processing have been linked to increased greenhouse gas emissions (GHGs). These gases trap heat, making the planet warmer.

Rare earth mining and refining also have implications for supply chain management and geopolitical relations. China far outpaces other countries in terms of refining capabilities, so there's a chance that global shortages could make it difficult for manufacturers to obtain the rare earth elements they need.

Since China controls the rare earth industry, increasing geopolitical tensions may prompt the Chinese government to implement tighter export controls. Other countries have responded by ramping up their rare earth mining and processing efforts.

For example, the U.S. now views rare earth elements as essential for national defense. Federal agencies are offering funding for projects designed to increase rare earth production. The government is also speeding up the permitting processes to help mining companies avoid delays that could prevent them from extracting adequate quantities of rare earth minerals.

Due to high rare earth prices, several countries are also exploring ways to recycle these elements or find alternative materials.

The future of rare earths

To counteract the environmental impact of rare earth mining and processing, some companies have adopted sustainable mining practices. These practices aim to reduce waste and make the extraction process more selective, which has the potential to prevent soil erosion, air pollution, and water contamination.

Rare earth elements remain essential for revolutionizing the tech industry and transitioning to renewable energy. Mining companies, processing facilities, and national governments are working to keep the supply steady by recycling scrap and reusing these minerals whenever possible.