Rare earth metals are powering the future of technology, making them one of the most sought-after commodities in global markets. From smartphones and electric vehicles to wind turbines and defense systems, these critical elements are essential for innovation and sustainability.
As demand skyrockets and supply chains tighten, rare earth metals are becoming a strategic asset, shaping industries and economies worldwide. Their rising value is not just about scarcity, it’s about their irreplaceable role in the technologies driving modern life.
What Are Rare Earth Metals?
The 17 elements that make up the rare earth group include 15 silvery-white metals known as lanthanides or lanthanoids, as well as scandium and yttrium, which have comparable metallic properties but are different from other metals. Consumer electronics, electric cars, aviation engines, medical devices, oil refineries, and military applications are just a few of the many goods that use them.
What Is the Most Common Rare Earth Metal Commodity?
Lanthanum and cerium are among the most common rare earth metals. Lanthanum is used in camera lenses and lighting. Cerium is used in catalytic converters, which reduce combustion engine emissions. Neodymium and praseodymium are in demand for permanent magnets used in EV motors and wind turbines.
Why Are Rare Earth Metals the New Hot Commodity?
Due to their vital role in high-tech and low-carbon technologies, especially for renewable energy and electric vehicles, rare earth metals are becoming a hot commodity worldwide, including in the UK. As the world moves toward a low-carbon economy, demand for these metals is expected to increase.
Rare earth elements are essential components in a wide range of technologies, including magnets for electric vehicles and wind turbines, batteries, semiconductors, and LED lighting.
The transition towards a low-carbon economy, including the widespread adoption of renewable energy and electric vehicles, is driving up demand for rare earth metals, as these technologies heavily rely on them.
In the upcoming years, there will likely be a major increase in demand for rare earth metals due to the growing demand for electric vehicles and renewable energy technologies worldwide.
What Environmental Impact Do Rare Earth Metal Commodities Have?
Solvents are frequently used in rare earth processing, which can result in hazardous waste that contaminates the land, water, and air. Although they are not yet commonly utilized, more ecologically friendly technologies are being developed. Acid is frequently used to remove radioactive uranium or thorium that is present in some rare earth ore types.
Because of this, the sector’s growth is hampered by environmental and health regulations.
Are Rare Earth Metals Uncommon?
Here, “rare” is a little misleading. Since these rare earth elements are typically present very frequently in the Earth’s crust, there may be instances where a better word for rare is concealed.
Despite being extensively distributed in extremely minute amounts, several rare earth elements are actually as common as tin, nickel, copper, or zinc. These elements are concentrated enough by natural processes to be extracted in a limited number of locations. So, “rare” refers to the fact that there aren’t enough of them in one location.
Nevertheless, rare earths have become a very hot commodity on the world’s markets and prices for some of them are rising rapidly.
Who Mines the Most Rare Earth Metals?
China dominates global rare earth metal mining, accounting for over two-thirds of global production, with the United States, Myanmar, and Australia following in production volume.