Introduction
Every phone, laptop, battery in electric vehicles, and other electronics have some rare earth metals in them. They are vital for most electronics and are the most essential metal in the energy transition. For developing countries and advanced economies alike, this metal is essential. Rare earth metals have emerged as an important component in manufacturing, energy, and transportation supply chains. In this article, we are going to define rare earth metals, illustrate their uses and importance for key industries, and outline countries with the largest deposits.
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What are Rare Earth metals?
Rare earth elements (REE) are a group of 17 metallic elements that include the fifteen lanthanides on the periodic table, scandium, and yttrium. Their unique properties such as magnetic, luminescent, and electrochemical characteristics, make them essential for various high-tech applications. They are not rare in quantity but are challenging to extract from the ground. Rare earth elements are strategically important as they are used in a wide range of technologies ranging from consumer electronics to clean energy, advanced transportation, healthcare, national defense, and more. They are important due to their ability to improve technology performance by reducing weight, emissions, and energy consumption, thereby improving efficiency, performance, miniaturization, speed, durability, and thermal stability
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Common uses of Rare Earth Metals
Rare earth elements can be used in a wide variety of ways due to their unique properties, which include;
Magnets
Rare earth magnets range from neodymium, praseodymium, samarium, and dysprosium and can be used in several applications that require strong magnets such as electronic motors, generators, wind turbines, and computer hard drives.
Electronics and Optics
Rare earths are equally used in the production of LCD and plasma screens, fiber optics, lasers, and medical imaging. Europium is equally used for red phosphors for color television sets and computer monitors while erbium is used to dope fiber optic cables to amplify signals.
Catalysts
Cerium and lanthanum are important catalysts that are used in petroleum as well as diesel additives in other to reduce particulate emissions.
Glass and Polishing
Cerium is used as a polishing agent for glass in camera lenses and LCD screens while lanthanum is used to make specialty glass for cameras and other optical instruments.
Metallurgy
Rare earths are used to improve the properties of various metal alloys. Lanthanum, cerium, neodymium, praseodymium, and yttrium are used across several industries to improve the strength, heat resistance, and corrosion resistance of steel. Similarly, scandium is used to make high-performance aluminum alloys for aerospace applications.
Ceramics
Rare earths are used in the production of specialized ceramics and glazes while lanthanum and cerium are used to produce camera lenses and glass for high-powered camera flashes.
Other Uses
Rare earths are also used in permanent magnets for electric engines in hybrid and electric vehicles, as well as in the batteries for portable electronics like laptops and iPads. They are equally used in fluorescent and LED lights, lasers as well as medical devices such as MRI machines used for scans.
Due to their unique properties, rare earth metals have a significant impact on the global economy. Here are some ways rare earth metals could impact or influence the global economy.
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Impact of Rare Earth Metals on the Global Economy
Strategic Importance
REEs are considered critical raw materials with strategic significance to almost all countries. They are useful for the production of high-tech equipment, modern electronics, military applications, and clean energy technologies. As a result, disruptions to the rare earth industry can ripple across the global economy.
Economic Activity and Employment
The rare earth industry is responsible for a substantial portion of economic activity and employment across the world. In the United States, for example, the rear earth industry generates billions in revenue and supports thousands of jobs across a variety of industry sectors, including healthcare, transportation, electronics, and defense.
Dependence in China
China currently dominates the global rare earth industry, accounting for over 90% of production. This heavy reliance on China for rare earth supplies poses a serious threat to countries such as the United States that lack domestic mining capacity and processing capabilities.
Price Fluctuations
Few Major suppliers mean that disruptions in the rare earth metals market can cause significant price fluctuations. This was evident in 2010-2011 when China imposed the export restrictions causing rare earth metal prices to spike and such swings negatively impact rare-earth-dependent industries such as electronics, energy, and electric vehicles to name a few.
Environmental and Social Costs
The mining and processing of rare earths have substantial environmental and social impacts, especially in countries with lax mining regulations. Rare earth extraction tends to generate toxic waste and radioactive byproducts that can contaminate soil and water and harm local communities. These environmental costs can undermine the economic benefits of rare earth mining.
In summary, rare-earth metals are critical to the modern economy, but their supply and production come with economic, environmental, and geopolitical challenges that policymakers must navigate carefully. Diversifying supply sources and developing more sustainable mining practices are important steps to mitigate the risks associated with rare earth dependence.
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What Industries Depend the Most on Rare Earth Metals
Electronics: Electronic devices such as smartphones, computers, and televisions rely on rare earth metals due to their unique properties that enhance performance and efficiency.
Automotive: The automotive industry depends heavily on rare earth metals for the manufacturing of electric vehicles, hybrid cars, and a range of components like batteries and motors.
Clean Energy: In the clean energy or renewable energy sector, rare earth metals are used in the production and generation of wind power and solar energy, through turbines and solar panels.
Defense Technologies: Rare earth elements are essential for various defense technologies, including radar systems, sonar transducers, and military communication equipment.
Healthcare: The healthcare sector uses rare earth metals in medical devices, imaging technologies, and pharmaceuticals, highlighting their importance in the healthcare industry.
Optics and Glass: Rare earth elements are used in the production of advanced optics, glass products, and camera lenses, demonstrating their significance in the optics industry.
Catalysts and Metallurgy: Industries like petroleum refining, metallurgy, and catalyst production rely on rare earth metals for their unique catalytic properties and ability to enhance material properties.
These industries showcase the diverse and critical role that rare earth metals play in modern technology, manufacturing, and innovation across various sectors.
What Countries Have the Largest Deposits of Rare Earth Metals
Below is a list of the countries with the largest countries across the world.
- Reserves: 44 million MT.
- Reserves: 22 million MT.
- Reserves: 21 million MT.
- Reserves: 10 million MT.
- Reserves: 6.9 million MT.
- Reserves: 5.7 million MT.
- United States. Reserves: 1.8 million MT.
- Reserves: 1.5 million MT.
Meanwhile, there are nearly 100 REE mineral deposit sites found in half the countries of Africa. Just five countries—Mozambique, Angola, South Africa, Namibia, and Malawi—hold half of all the sites of REE deposits in Africa.
Henri Kouam
Founder & Executive Director
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Mr. Henri Kouam
Founder & Executive Director
Facebook: @Cameroon Economic Policy Institute – CEPI || Twitter: @CameroonCepi
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Mr. Henri Kouam is the Founder of the Cameroon Economic Policy Institute (CEPI) of the Henri Kouam Foundation based in Yaounde. He was a consultant for the North American Treaty Organization (NATO) for Africa in 2023 and currently works as a contributor for the Economist Intelligence Unit (EIU).