At Natural Resource Stocks, we often encounter misconceptions about rare earth elements.
Despite their name, these 17 elements are not actually rare in the Earth’s crust.
So why are rare earth elements called rare? We’ll explore this misnomer, delve into the challenges of extraction and processing, and highlight their critical role in modern technology.
What Are Rare Earth Elements?
The 17 Rare Earth Elements
Rare earth elements (REEs) comprise a group of 17 metallic elements found in the Earth’s crust. These elements include scandium, yttrium, and the lanthanides. Scientists categorize REEs into two groups: light rare earth elements (LREEs) and heavy rare earth elements (HREEs). LREEs span from lanthanum to europium, while HREEs include gadolinium to lutetium, plus yttrium.
Industry frequently uses elements like neodymium, praseodymium, dysprosium, and terbium. These REEs play critical roles in various high-tech applications, from smartphones to electric vehicles.
Unique Properties of REEs
The value of rare earth elements stems from their unique chemical and physical properties. REEs exhibit strong magnetic properties, special optical characteristics, and distinctive electronic configurations. These attributes make REEs indispensable in many modern technologies.
For example:
- Neodymium creates powerful permanent magnets (found in wind turbines and electric vehicle motors)
- Europium provides the red color in television and computer screens
- Erbium enables fiber optic communication systems
Abundance and Distribution
Despite their name, rare earth elements occur relatively abundantly in the Earth’s crust. Cerium, the most common REE, exists in greater quantities than copper. However, REEs rarely concentrate in deposits, which complicates economically viable extraction.
China is responsible for around 61 percent of global mine production of REEs. This concentration of production in one country raises concerns about supply chain security and prompts efforts to develop REE resources in other parts of the world.
Impact on Modern Technology
REEs revolutionize various technological sectors. Their unique properties enable the miniaturization of electronics, the development of powerful magnets for renewable energy technologies, and advancements in medical imaging equipment.
Some key applications include:
- Smartphones and tablets (for screens, speakers, and vibration mechanisms)
- Electric and hybrid vehicles (for batteries and motors)
- Wind turbines (for generators)
- MRI machines (for powerful magnets)
- Lasers and fiber optics (for telecommunications)
The growing demand for these technologies drives the increasing importance of REEs in the global economy.
As we explore the reasons behind the misleading name of these elements, we’ll uncover the fascinating story of their discovery and the challenges associated with their production.
Are Rare Earth Elements Actually Rare?
Abundance in the Earth’s Crust
Rare earth elements (REEs) are not as scarce as their name suggests. In fact, some REEs occur more frequently than many well-known metals in the Earth’s crust. The term “rare earth” is a historical misnomer that continues to persist despite our improved understanding of these elements’ prevalence.
REEs exist in relatively high quantities in the Earth’s crust. Rare earths are relatively abundant in the Earth’s crust, but minable concentrations are less common than for most other mineral commodities. Even the least common REEs, such as thulium and lutetium, appear nearly 200 times more often than gold.
Comparison to Other Elements
To illustrate this point, let’s compare the abundance of some REEs with other well-known elements:
- Cerium: 60 parts per million (ppm)
- Copper: 60 ppm
- Neodymium: 38 ppm
- Lead: 14 ppm
- Tin: 2 ppm
- Silver: 0.075 ppm
- Gold: 0.004 ppm
This comparison clearly shows that many REEs occur far more frequently than precious metals like gold and silver, which people typically don’t consider “rare.”
Origins of the Misleading Name
The term “rare earth” dates back to the late 18th and early 19th centuries when scientists first discovered these elements. At that time, they found them in uncommon oxide minerals, which chemists called “earths” in the archaic terminology of that era. The early chemists who isolated these elements believed they had discovered rare minerals, hence the name “rare earths.”
This misconception continued partly due to the difficulty in separating REEs from their ore. REEs often mix together in minerals, and their similar chemical properties make them challenging to isolate. This complexity in extraction and processing, rather than actual scarcity, contributes to their perceived rarity.
Economic Rarity vs. Geological Abundance
Economically viable concentrations of REEs occur less frequently than their overall crustal abundance might indicate. While REEs spread widely, they rarely form concentrated deposits that miners can profitably extract. This economic rarity (rather than geological scarcity) plays a key role in the supply challenges associated with REEs.
Understanding the true abundance of REEs holds great importance for investors and industry stakeholders. The real value of these elements lies not in their scarcity, but in their unique properties and the growing demand for their use in advanced technologies.
As we explore the challenges in extracting and processing rare earth elements, we’ll uncover why these abundant elements can still pose significant production difficulties.
The Extraction Conundrum: Why Rare Earth Elements Pose Production Challenges
Low-Grade Deposits
Rare earth elements (REEs) occur abundantly in the Earth’s crust, but their extraction presents significant challenges for mining companies. The geological distribution of REEs often results in low-grade deposits, which complicates economically viable extraction.
Most REE-bearing minerals contain less than 10% REEs by weight. This low concentration necessitates the processing of large amounts of ore to obtain relatively small quantities of REEs, which increases production costs. For instance, the Mountain Pass mine in California (one of the largest REE deposits outside China) has an average grade of about 8% rare earth oxides.
Complex Separation Processes
The chemical similarity of REEs makes their separation a complex and costly process. After mining, the ore undergoes multiple stages of physical and chemical processing to isolate individual REEs.
Solvent extraction stands out as a common method. This process involves dissolving the ore in acid and passing it through hundreds of mixer-settler units. Each unit extracts certain REEs preferentially, gradually separating them from the mixture. This process can take several days to weeks and requires significant energy input.
The U.S. Department of Energy provides cost estimates for REE production, with typical percentage variations of actual costs from the cost estimate after application of contingency.
Environmental and Regulatory Hurdles
REE mining and processing can have significant environmental impacts. The extraction process often involves the use of strong acids and produces large volumes of waste (including some radioactive materials).
China’s mine production of REEs was 240,000 tonnes in 2023, nearly six times that of the US, the next leading producer and its main rival. Environmental concerns have led to stricter regulations in China. These regulations have increased production costs and reduced output, affecting global supply.
Similarly, in the United States, environmental regulations have influenced the closure and reopening of the Mountain Pass mine. The mine’s operators have invested heavily in environmental protection measures to comply with California’s strict environmental laws.
Innovations in Extraction
The environmental challenges drive innovation in the REE industry. Companies develop new, cleaner extraction methods, such as bio-leaching and recycling of REEs from electronic waste. These innovations could reshape the REE market in the coming years, potentially opening up new investment opportunities.
The complex interplay of geological, technical, and regulatory factors makes REE production a challenging endeavor. However, the growing demand for these elements in high-tech applications ensures ongoing efforts to overcome these obstacles.
Final Thoughts
The question “Why are rare earth elements called rare?” originates from a historical misnomer. These elements are actually abundant in the Earth’s crust, with some even more common than copper. The term “rare” stems from their initial discovery in uncommon oxide minerals, not their actual prevalence.
Rare earth elements face significant extraction and processing challenges despite their abundance. Low-grade deposits, complex separation processes, and environmental concerns make economically viable production difficult. These factors contribute to their perceived rarity in the marketplace, even though they’re geologically common.
The rare earth element industry will continue to evolve with improved extraction techniques and increased recycling efforts. Natural Resource Stocks offers valuable insights and analysis on this dynamic sector. Our platform provides expert commentary on market trends, geopolitical factors, and emerging opportunities in the rare earth element industry.
