The Rare Earth Metal Conundrum

Rare earth metals have become increasingly important throughout the 21st century as they are crucial in the use of emerging technologies, such as computer processors, fiber optics, hard disk drives, and more. Historically, China has been the number one player in the refinement/processing of rare earth metals for global use, just as they have been in virtually every other manufacturing segment in the world…

According to the USGS, China accounted for 60% of rare earth production in the year 2021, up from 58.3% the year prior. Statista reports a trend of China losing its stronghold in the rare earth metal production from the past ten years, as other the U.S. (amongst others) are looking to tap into reserves and begin the processing locally, as opposed to relying on China for that work.

With a new shift in reducing carbon emissions across the globe, there is a focus on changing the paradigm and infrastructure in which we operate, most notably seen in the boom in the EV market. SAVE THE PLANET. Global mining and processing of rare earth metals is likely going to be emphasized even more within the following years, which presents a big environmental issue which is highlighted below.

The paradox that rare earth metals are the panacea of climate change and environmental destruction is quite apparent. The refining process of these elements is incredibly energy intensive, and creates unwanted byproducts which become an incredible nuisance to remedy. China’s largest operation of rare earth metal refinery in Baotou, has created a nightmare in terms of environmental consequences as a result of the chemical processes involved in the refinement. China’s Minisitry of Industry and Information Technology has estimated a total cost of $5.5 Billion to remedy and cleanup the site. Yikes.

The U.S. faces not only competing with China in terms of rare earth metal refinement, but must also do so in a way that embodies sound environmental considerations. This opens the door for innovation within this sector, because rare earths are only going to become more so integral to our daily lives as time goes on. INGENUITY BABY. LET”S MAKE IT HAPPEN.