China mines roughly 60 percent of the world’s rare earths and handles more than 85 percent of the processing capacity. Those two numbers explain why governments from Brussels to Washington are now hunting for ore outside Chinese hands.
The name misleads. Rare earth elements are fairly common in the Earth’s crust. What makes them scarce in practice is the expensive, multi-stage work of extracting them, separating them and refining them into usable material. Neodymium and praseodymium, the two most sought after, go into permanent magnets that let electric vehicle motors and wind turbine generators run with higher power density and better efficiency. Smartphones, defense systems and high-performance electronics depend on the group as well.
Demand has climbed over the past decade as clean energy and electrified transport expanded. Industry analysts estimate that demand for the elements used in permanent magnets could rise three to five times by 2040.
China’s grip goes past the mine
Beijing’s position is not limited to digging. It also covers refining, chemical separation and magnet manufacturing. Manufacturers and governments in Europe, North America and Asia have grown uneasy about that, particularly now that rare earths are treated as strategic materials tied to economic security. Control of their supply is increasingly compared to energy security.
The European Union’s Critical Raw Materials strategy sets a target of sourcing at least 10 percent of Europe’s rare earth consumption from domestic production by 2030. The United States has classed the elements as critical minerals and has several public-private efforts under way to build domestic refining plants that turn concentrates into high-purity material.
Projects outside China
In Sweden, the Norra Kärr deposit holds substantial heavy rare earth resources, which are needed for high-temperature magnets. Plans call for a processing facility producing rare earth oxides. Norway’s Fen deposit has seen recent exploration raise its resource estimates sharply, and geological studies suggest it could become one of Europe’s largest rare earth operations if development goes ahead.
Canada’s Wicheeda project in British Columbia is moving through feasibility studies. It carries significant quantities of neodymium and praseodymium. Developed, it could anchor a North American chain linking mines to refining and magnet production.
Greenland’s Tanbreez deposit, in the south, also contains zirconium and other strategic minerals. It could supply European industry if better logistics link the island to processing plants on the continent.
Why new mines are slow
Ore bodies tend to hold tangled mixtures of minerals, and turning raw rock into individual elements takes several rounds of refining and chemical treatment. That makes projects capital-intensive. China’s industry grew up under lighter environmental rules and with heavy state backing, an edge Western producers never had.
Some deposits also carry radioactive thorium, which has to be handled carefully and needs strict oversight and advanced waste systems. Regulation in Western countries is often tougher, and that has slowed development there. Shifting policy priorities are gradually changing the picture, according to the same industry assessment.
Meeting the demand forecast will take new mines, new refineries and processing technology able to cope with complex deposits.
