Rare earth elements (REEs) are a group of 17 chemically similar elements that are critical components in a wide range of modern technologies, including renewable energy systems, electric vehicles, defense systems, and consumer electronics. Despite their strategic importance, the United States has become increasingly dependent on imports of rare earths, primarily from China. As geopolitical tensions and supply chain disruptions highlight the risks of this dependence, there is growing recognition of the need to develop a domestic rare earth supply chain and reduce reliance on foreign sources.
The Importance of Rare Earth Elements
Rare earth elements are crucial for the production of high-performance magnets, which are used in the generators of wind turbines and the motors of electric vehicles. Neodymium, for example, is a key component of neodymium-iron-boron (NdFeB) magnets, which are the strongest permanent magnets available and essential for high-efficiency electric motors. Samarium-cobalt (SmCo) magnets, which rely on another rare earth element, samarium, are resistant to high temperatures and used in applications such as aerospace and defense systems.
In addition to their use in magnets, rare earth elements are also critical components in other advanced materials and technologies. Lanthanum, for instance, is used in the production of high-refractive-index glasses for optical applications, while europium and terbium are essential for the red and green phosphors in energy-efficient lighting systems. Rare earths are also used in catalytic converters for automotive emissions control, as well as in the production of high-strength, lightweight alloys for aerospace and defense applications.
The United States’ Rare Earth Dependency
Despite being the birthplace of rare earth mining and processing, the United States has become increasingly reliant on imports of rare earth elements and finished products containing rare earths. In the 1990s, the U.S. was the world’s leading producer of rare earths, with Mountain Pass in California accounting for a significant share of global production. However, due to a combination of factors, including environmental regulations, labor costs, and competition from China, U.S. rare earth production declined sharply in the early 2000s. By 2018, the U.S. was estimated to import 100% of its rare earth needs, with China supplying 80% of those imports.
This dependence on foreign sources, particularly from China, has raised concerns about the U.S. rare earth supply chain’s security and resilience. In recent years, geopolitical tensions between the U.S. and China have underscored the risks of relying on a single, potentially unstable source for critical materials. Additionally, the COVID-19 pandemic has highlighted the vulnerabilities of global supply chains and the need for greater diversification and resilience in critical material supply chains.
Unlocking America’s Rare Earth Potential
Recognizing the strategic importance of rare earth elements and the risks associated with dependence on foreign sources, the U.S. government and private sector have begun to take steps to unlock America’s rare earth potential and reduce reliance on imports. Key initiatives and opportunities in this effort include:
- Domestic rare earth exploration and mining
- Processing and refining capacity expansion
- Recycling and material recovery
- Research and development of new technologies and substitutes
- Strengthening international partnerships and diversifying supply chains
Domestic Rare Earth Exploration and Mining
Revitalizing the U.S. rare earth mining industry is a critical first step in reducing dependence on foreign sources. The U.S. is home to significant rare earth reserves, with the Mountain Pass mine in California and the Bokan-Dotson Ridge deposit in Alaska among the most promising sources. In 2020, the Mountain Pass mine was acquired by MP Materials, which has announced plans to invest $300 million in the site to increase production capacity and establish a domestic rare earth processing facility by 2025.
In addition to reactivating existing mines, there is also potential for discovering new rare earth deposits in the United States. The U.S. Geological Survey (USGS) continues to conduct surveys and exploration programs to identify and assess domestic rare earth resources, with a focus on identifying deposits with high concentrations of critical elements and low levels of radioactive thorium and uranium impurities.
Processing and Refining Capacity Expansion
While the United States has significant rare earth reserves, it currently lacks the domestic processing and refining capacity necessary to convert raw rare earth ores into refined elements and metals. In 2019, the U.S. Department of Defense (DoD) identified this bottleneck in the rare earth supply chain as a significant vulnerability and announced plans to invest in the development of domestic rare earth processing and refining capabilities.
In response to this initiative, several private companies have announced plans to develop rare earth processing facilities in the United States. In addition to MP Materials’ plans for a processing facility at Mountain Pass, other companies, such as Texas Mineral Resources Corp. and USA Rare Earth LLC, are also developing rare earth processing and refining projects in the United States. These initiatives aim to create a more resilient and secure rare earth supply chain by reducing reliance on overseas processing facilities and reducing the risk of supply chain disruptions.
Recycling and Material Recovery
Another promising opportunity for unlocking America’s rare earth potential is through the development of advanced recycling and material recovery technologies. Rare earth elements are found in a variety of end-of-life products, including magnets from discarded hard drives and other electronic devices, as well as in spent catalytic converters from automobiles. Recovering and recycling rare earths from these sources can help to reduce reliance on primary mining and imports while also contributing to a more circular and sustainable economy.
Researchers at the U.S. Department of Energy’s (DOE) Argonne National Laboratory have developed a novel recycling process called Hydrometallurgical Recovery of Rare Earth Elements (Hydromet process) that uses aqueous chemistry to recover rare earths from magnets with a recovery rate of over 90%. Other research efforts, such as the DOE’s Critical Materials Institute (CMI), are also exploring novel recycling and recovery technologies for rare earth elements and other critical materials.
Research and Development of New Technologies and Substitutes
In addition to efforts to expand domestic rare earth production and processing, another key component of unlocking America’s rare earth potential is investment in research and development (R&D) of new technologies and materials that can reduce reliance on rare earths or replace them altogether. While rare earth elements currently play a critical role in many advanced technologies, ongoing R&D efforts may lead to the development of alternative materials and technologies that can perform similar functions without relying on rare earths.
For example, researchers at the DOE’s Oak Ridge National Laboratory (ORNL) have developed a new family of magnets based on a combination of iron and nitrogen, which could potentially replace rare earth-based magnets in certain applications. Other research efforts are focused on developing high-performance permanent magnets that require lower amounts of rare earth elements or can function without them entirely. These R&D initiatives could help to reduce the overall demand for rare earths and diversify the materials base for critical technologies.
Strengthening International Partnerships and Diversifying Supply Chains
While the United States is rightly focused on developing its domestic rare earth resources and capabilities, it is also important to recognize that unlocking America’s rare earth potential cannot be achieved in isolation. Strengthening international partnerships and diversifying supply chains are crucial components of a comprehensive rare earth strategy. The U.S. can collaborate with allies and partners to develop new sources of rare earth elements and encourage responsible mining and processing practices that adhere to high environmental, social, and governance standards.
In 2020, the U.S. joined the Minerals Security Partnership (MSP), a multilateral initiative led by the European Union and also including Canada, Japan, and South Korea. The MSP aims to promote the responsible and sustainable development of mineral resources, diversify supply chains, and reduce reliance on single, dominant suppliers. By working closely with like-minded partners, the U.S. can help to create a more resilient and secure global rare earth market.
Conclusion
Unlocking America’s rare earth potential is essential to reducing dependence on imports and ensuring secure access to these critical materials. Achieving this goal requires a comprehensive approach that includes domestic exploration and mining, processing and refining capacity expansion, recycling and material recovery, research and development of new technologies and substitutes, and strengthening international partnerships and diversifying supply chains. By pursuing these initiatives, the United States can reduce its vulnerability to supply chain disruptions and geopolitical risks, while also supporting the growth of domestic industries and jobs.
FAQs
What are rare earth elements (REEs)?
Rare earth elements (REEs) are a group of 17 chemically similar elements that are critical components in a wide range of modern technologies, including renewable energy systems, electric vehicles, defense systems, and consumer electronics. They are called “rare” earths because they are relatively scarce in the Earth’s crust, but they are not actually rare in terms of abundance. The 17 rare earth elements are: yttrium (Y), 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), and lutetium (Lu).
What are the primary uses of rare earth elements?
Rare earth elements are critical components in a wide range of modern technologies, including:
- Permanent magnets used in wind turbines, electric motors, and generators
- High-performance magnets used in defense systems, aerospace, and medical applications
- Phosphors used in energy-efficient lighting and displays
- Catalytic converters for automotive emissions control
- High-strength, lightweight alloys for aerospace and defense applications
- Electronic components and devices, such as smartphones, hard drives, and lasers
Why is the United States dependent on rare earth imports, especially from China?
The United States was once a leading producer of rare earth elements, but a combination of factors, including environmental regulations, labor costs, and competition from China, led to a decline in U.S. rare earth production in the early 2000s. As a result, the U.S. became increasingly reliant on rare earth imports, with China emerging as the dominant global supplier. China’s dominance in the rare earth market is attributed to a combination of factors, including favorable geology, low labor costs, and government support for the rare earth industry.
What are the risks associated with dependence on rare earth imports?
Dependence on rare earth imports, particularly from a single, dominant supplier like China, poses several risks for the United States:
- Geopolitical risks: Reliance on imports from a single country can make the U.S. vulnerable to supply disruptions caused by geopolitical tensions or trade disputes.
- Supply chain disruptions: The COVID-19 pandemic has highlighted the risks of relying on global supply chains for critical materials, as disruptions in one part of the world can ripple through global supply chains and lead to shortages and price fluctuations.
- Technology and intellectual property security: Dependence on rare earth imports from countries with different intellectual property and technology transfer regulations can expose the U.S. to the risk of technology transfer and intellectual property theft.
What steps are being taken to unlock America’s rare earth potential?
To reduce dependence on rare earth imports and secure access to these critical materials, the United States is pursuing a comprehensive strategy that includes:
- Domestic rare earth exploration and mining
- Processing and refining capacity expansion
- Recycling and material recovery
- Research and development of new technologies and substitutes
- Strengthening international partnerships and diversifying supply chains
How can the United States diversify its rare earth supply chain and reduce reliance on imports?
To diversify its rare earth supply chain and reduce reliance on imports, the United States can pursue several strategies:
- Increase domestic rare earth production by investing in exploration, mining, processing, and refining capabilities
- Encourage recycling and material recovery of rare earth elements from end-of-life products
- Develop alternative materials and technologies that can replace or reduce the need for rare earth elements in critical applications
- Strengthen international partnerships with allies and partners to develop new sources of rare earth elements and promote responsible mining and processing practices