The Looming Dependence on China: A Warning from Dera on Rare Earths
China's Dominating Role in Rare Earths Supply Expected to Persist in the Short Term - Anticipated Medium-Term Reliance on China for Rare Earth Elements: Scientists' Predictions
Hey there! Let's dive into the world of rare earths, shall we?
According to the experts at Dera, a research institute under the Federal Institute for Geosciences and Natural Resources, we've got approximately 470 known deposits of these rare elements scattered around the globe. That's a decent number, right? Well, here's the kicker: Around 200 of those deposits reside outside of China, but guess who's got the lion's share? You guessed it! China possesses the largest reserves and production quantities.
The Dera scientists classify 16 elements as rare earths, think lanthanum, neodymium, dysprosium, and terbium. These guys are our go-to for magnets, metal alloys, and catalysts, just to name a few. Why's this important? Well, they're crucial for our energy and mobility transition, powering wind turbines and electric motors, among other things.
Now, here's where it gets intriguing. Despite the anticipated monumental increase in the demand for rare earths for electric vehicles and wind power, the market doesn't seem to be responding yet. Study co-author Harald Elsner puts it this way, "The demand is expected to surge, but the market isn't showing much signs of it just yet." Odd, isn't it? Other markets, like non-electric vehicle and wind power applications, are steady or even declining, yet prices for rare earths remain low, making new projects unaffordable.
The Dera also points out the concentration of mining and refining expertise in China. Many companies have been making promises about new projects, but a lack of action persists.
The study sheds light on a concerning situation regarding so-called 'heavy rare earths' (like dysprosium and terbium). Currently, these are solely sourced from China or mined unsustainably in Myanmar and refined in China. The importance of these elements, particularly for the US defense industry, is seen as a major reason behind US President Donald Trump's interest in Greenland. It's rich in dysprosium and terbium, but it remains untouched.
- China
- Global Economy
- Federal Institute for Geosciences and Natural Resources
- United States
- Greenland
- Despite having approximately 470 known deposits of rare earth elements worldwide, China possesses the largest reserves and production quantities.
- The Dera researchers have identified 16 elements as rare earths, such as lanthanum, neodymium, dysprosium, and terbium, which are crucial for various applications like magnets, metal alloys, and catalysts in our energy and mobility transition.
- The US defense industry highly depends on 'heavy rare earths' like dysprosium and terbium, which are solely sourced from China or mined unsustainably in Myanmar and refined in China, as seen in the US President Donald Trump's interest in Greenland.
