The recent discovery in Sweden of the largest deposit of "rare earths" in Europe, and the major dispute in the field: economic, diplomatic and technological between the USA and China has made these minerals increasingly relevant. However, what are rare earths?
The term "rare earths" refers to a group of chemical elements, specifically 17 metals. These metals include lanthanides, samarium, holmium and others. These minerals are prized for their magnetic properties. This quality has made them the most widely used group of elements in a wide range of technological and weapons products in the world. These metals are present in: computers, fiber optic cables, LEDs, among other devices. As another example, lanthanum is a key element in the rechargeable batteries used in many electronic devices and hybrid vehicles.
These minerals are not difficult to find in the earth's crust, but commercially useful deposits are rare. This is because these metals are found in small quantities in other minerals that are difficult to separate. Consequently, their extraction cost is very high, and there are two problems that make them "rare earths".
Firstly, the companies that process these minerals usually do so because of the high cost of the amount of product obtained from prospecting, and secondly, because of the high environmental price. This material usually arrives contaminated with elements such as uranium or thorium.
According to information as of 2017 from CRU, there are 121.06 million tons of rare earth oxide equivalent reserves in the world. These deposits are spread all over the planet within states such as: Vietnam, Burma, Australia, Canada, Brazil, Tanzania or the United States, among others.
However, the People's Republic of China concentrates about 40% of the known reserves of rare earths. Over the last decades, Beijing has been able to use lax environmental and labor regulations to its advantage to position itself as a prominent leader in this key market, for example, in 2015-2016, Beijing was the undisputed leader, concentrating 80% of global exports.
Global consumption of rare earths has doubled between 2000 and 2016, and along with it, its increased strategic importance. During a trade dispute between China and Japan in 2010, due to a sovereignty dispute over the Senkaku/Diaoyu islets in the East China Sea; Beijing restricted rare earth exports to Japan.
The growing economic and technological tension between the U.S. and China. Rare earths and their supply are key for the different powers. 80% of the rare earths purchased by the US in 2018 came from China. Hence, both the US, the EU and other players are trying to decrease their dependence in this field with Beijing, amid increased trade and technological tension. The recent discovery in Sweden could be key for the EU to diversify raw material suppliers and reduce its dependence on China. The increased importance of these metals in the economic, technological and arms fields will make the players move their pieces more cautiously.
Recommended bibliography:
Garside, M. (2022) Rare earths: Global reserves by country 2021, Statista. Available at: https://www.statista.com/statistics/277268/rare-earth-reserves-by-country
NATIONAL MINERALS INFORMATION CENTER Rare earths statistics and information | U.S. geological survey, Rare Earths Statistics and Information. U.S. Geological Survey. Available at: https://www.usgs.gov/centers/national-minerals-information-center/rare-earths-statistics-and-information
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