Rare earth elements are the new oil. of this group 17 types of metal elements It has become essential to the clean energy transition and modern manufacturing in general. These elements include: unique characteristics These will be essential to the future of technology.
“[Rare earths]just change everything about cars. About green technology. About precision in weapon systems. And they just became essential.” President of rare earth consultancy Three Consulting, Jim Kennedy says: “You want a Prius? You need rare earths. You want a long-range Tesla? You need rare earths. You want a cruise missile with one meter accuracy? You need rare earths.”
The special utility of rare earth elements primarily comes from their use as catalysts and magnets in traditional low-carbon technologies. Other important uses of rare earth elements are in the production of special metal alloys, glasses, and high-performance electronics. Rare earth elements “have remarkable physical and chemical properties that make them arguably the superheroes of the periodic table,” Ryan Castilleux, managing director of mineral consultancy Adamus Intelligence, told Foreign Policy. Ta.
Rare earths are actually not as “rare” as their name would lead you to believe. These minerals occur naturally throughout the world, but the key is finding them in sufficient concentrations to make it worth the time and expense required to extract them.
All of this helps make rare earths a new axis of global geopolitical power. Countries with natural reserves of these elements and the capacity and resources to extract and refine them will wield enormous financial and political influence in the coming years.
So which country will rise to the top of this new geopolitical totem pole?
China is by far the largest producer of rare earth elements. After China, which supplies about 38% of the world’s raw rare earth minerals, Vietnam has the largest rare earth reserves, accounting for about 19%. This is followed by Brazil with 18.1 percent, Russia with 10.4 percent, India with 6 percent, Australia with 3.5 percent, and finally the United States and Greenland, tied for 1.3 percent each. No other country has more than 1% of its rare earth reserves.
But of all these countries, only China actually has geopolitical control over the rare earth supply chain and all the secondary markets that depend on those materials.
China supplies about 85 to 95 percent of the world’s refined rare earth minerals and has dominated the global market since the late 1990s. This is because Beijing has a near monopoly on rare earth refining capacity. As we know, a small number of other countries also have large reserves of important rare earth elements, but they do not have the necessary resources to process them for use in an efficient or cost-effective manner. Lack of established infrastructure.
occupied only by China 85-90% It will become the center of the world for refining rare earth mines into metals. Additionally, Chinese refineries supply 68 percent of the world’s cobalt, 65 percent of its nickel, and 60 percent of its EV battery-grade lithium. As a result, a whopping 75 percent of all EV batteries are manufactured in China.
There are major concerns that if other rare earth-rich countries do not step up to compete with China, it will give Beijing completely too much influence and create a less-than-free market. But so far some experts argue that such concerns are overblown. But rare earths are the new oil, and Western countries rushing to regain control. Global tensions over rare earths are certain to arise It will get hotter in the next few yearsAlleviating such lopsided market control is important for maintaining a balanced trade mechanism.
Written by Hayley Zaremba, Oilprice.com
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