De-Risking Rare Earths

Understanding Rare Earth Elements

Rare earth elements, despite their name, are not particularly rare in terms of abundance in the Earth's crust. They consist of 17 metallic elements, including neodymium, cerium, and dysprosium, which are integral to modern technologies such as electric vehicles, wind turbines, and smartphones. The misconception of their rarity arises from the difficulty in finding them in economically viable concentrations.

The geological formation of these elements is complex. As magma rises from the Earth's interior, it carries a mix of elements. However, rare earths are often left behind during the crystallization process due to their larger atomic sizes, making them incompatible with common minerals. This results in their concentration in specific geological environments, such as carbonatites and peralkaline igneous rocks, which are crucial for forming economically viable deposits.

Carbonatites, for example, are rare volcanic rocks that release fluids rich in rare earths as they cool, forming minerals like bastnäsite and monazite. Notable deposits include Mount Weld in Australia and Mountain Pass in California. Additionally, weathering processes in tropical regions can create ion absorption deposits, commonly found in southern China, which have made it a leading producer of rare earths.

Mining these elements is not solely about finding them in nature but involves a combination of geological, geographical, and economic factors. Although rare earth elements are widespread, the specific conditions needed to create mineable deposits are uncommon. The rarity lies in the perfect geological conditions that allow for their concentration, making the search for these elements a significant challenge in mineral exploration today.

In conclusion, while rare earths are abundant in the Earth's crust, their economic rarity stems from the geological processes required to concentrate them into viable deposits. Understanding this distinction is essential as these elements play a crucial role in advancing modern technology and sustainable energy solutions.

Rare earth elements (REEs) are a collection of 17 metallic elements, which include neodymium, cerium, and dysprosium. Despite the term 'rare', these elements are not actually scarce in the Earth's crust. In fact, elements like cerium are as abundant as copper, and neodymium is roughly as common as nickel. Even some of the so-called heavy rare earths, such as dysprosium, are found in concentrations that are greater than silver. The misconception stems from the fact that while these elements are widely distributed, they are not typically found in rich concentrations necessary for economical mining.

To illustrate this, the speaker likens the distribution of rare earth elements to gold dust on a beach: gold may be present everywhere, but if it is scattered too thinly, it cannot be mined effectively. This is due to the geological processes that dictate their concentration. Rare earths are often left behind during the crystallization of magma, as they do not fit well into the minerals that solidify first. Instead, they remain dissolved in the magma until specific conditions allow them to crystallize into their own minerals.

Thus, when we discuss 'rare earth deposits', we are referring to locations where geological conditions have combined perfectly to allow these elements to concentrate sufficiently for mining. This rarity of economically viable deposits is what truly makes them 'rare'.

• [00:21] "Rare earths are a group of 17 metallic elements that include names like neodymium, cerium, and dysprosium."
• [01:46] "Their atoms are a bit too big and a bit too awkward. So, they get left behind in the remaining melt."
• [07:00] "For every thousand places on Earth with rocks containing rare earths, maybe one or two will have enough concentrated to make a mine worthwhile."

The formation of rare earth elements is heavily dependent on specific geological conditions. When molten rock or magma rises from deep within the Earth, it carries a mix of chemical ingredients, including rare earths. As the magma cools, most elements crystallize into minerals, but rare earths, due to their larger and more awkward atomic structures, do not fit well into these minerals and remain dissolved in the magma. This is where they begin to concentrate.

Geologists refer to the rare earths as incompatible elements since they do not integrate easily into common minerals. Instead, the process of crystallization and cooling must be just right, allowing rare earths to crystallize into minerals like bastnasite and monazite—the primary sources of rare earths today. The conditions necessary for this process include the right type of magma, slow cooling, and the presence of specific elements and gases, such as fluorine, carbon dioxide, and chlorine.

Rare earth deposits are predominantly found in two types of geological environments: carbonatites and peralkaline igneous rocks. Carbonatites, which are volcanic rocks formed from magmas rich in carbon dioxide, release fluids loaded with rare earth elements during cooling. Meanwhile, peralkaline rocks evolve over extended periods, concentrating heavy rare earth elements, which are particularly valuable for high-tech applications.

• [01:22] "The answer lies in the geology behind it all. When molten rock or magma rises from deep inside the planet, it’s carrying a whole mix of chemical ingredients."
• [02:09] "If the process continues long enough, and if the chemistry is just right, those rare earths can finally start to crystallize into their own minerals."
• [02:36] "The biggest and richest rare earth deposits in the world come from something called carbonatites."

The mining, extraction, and refining of rare earth elements involve several complex processes. First, the minerals containing rare earths must be located and extracted from the earth. This requires a detailed understanding of geological processes such as magmatic differentiation, fluid movement, and weathering. After extraction, the rare earth minerals are processed to separate the valuable elements from other materials.

The extraction process can be challenging due to the presence of other elements that may complicate the mining process. For instance, rare earths are often found in conjunction with thorium, which is radioactive, necessitating careful handling and processing to ensure safety and compliance with environmental regulations. The transcript highlights that advanced chemistry and environmental management are crucial in processing these elements safely and cleanly.

Furthermore, the transcript emphasizes that while rare earths are common in the crust, turning them into usable materials is still a rare achievement due to the technical complexities involved. The need for modern processing methods and the presence of other tricky elements make this endeavor challenging. Countries like Australia, Canada, and the US are ramping up exploration efforts, indicating a growing emphasis on developing efficient mining and processing technologies to reduce reliance on imports, particularly from China.

• [06:01] "To turn scattered elements into an ore body, a few key things need to happen."
• [07:53] "Processing them safely and cleanly requires advanced chemistry and careful environmental management."
• [08:05] "So, while they’re common in the crust, turning them into usable materials is still a rare achievement."

The environmental costs and health effects associated with rare earth mining are significant concerns. The transcript does not delve deeply into specific pollutants or biological risks; however, it does mention that the presence of thorium—a radioactive element—alongside rare earths can pose serious health risks to miners and nearby residents. This highlights the need for stringent safety measures during extraction and processing.

Moreover, the environmental management required for safe processing of rare earth elements is critical. The complexities involved in mining these materials often lead to environmental degradation if not properly managed. The transcript implies that geologists and mining companies must prioritize environmental considerations to mitigate the risks associated with pollution and health hazards.

While specific pollutants are not cataloged, it is clear that the mining processes can lead to contamination of local water sources and soils, which can have long-term consequences for local ecosystems and human health. This underscores the importance of developing cleaner and more sustainable mining practices as the demand for rare earth elements continues to grow.

• [07:55] "Processing them safely and cleanly requires advanced chemistry and careful environmental management."
• [08:01] "So, while they’re common in the crust, turning them into usable materials is still a rare achievement."

China occupies a unique position in the rare earth market, having become the world’s top producer of these elements. This dominance is largely attributed to the presence of low-grade ion absorption deposits, primarily found in southern China. Although these deposits are not rich in rare earths, they are relatively easy to mine compared to other sources. The transcript notes that mining these deposits does not require explosives or heavy machinery, which lowers operational costs.

However, the situation is complicated by illegal mining activities, which further disrupt the market and pose environmental risks. These illegal operations can undermine regulated mining efforts and create challenges for sustainable practices in the industry. The scale of illegal mining in China has raised concerns about the sustainability of rare earth supplies and the potential impact on global markets.

China’s monopoly on rare earth production has significant implications for global supply chains and international politics. As other countries, particularly the US, seek to reduce their dependency on Chinese imports, the dynamics of the rare earth market are shifting. This has led to increased investment in rare earth exploration and production in countries like Australia and the US.

• [05:04] "This is why China became the world’s top producer of rare earths."
• [05:54] "These deposits can be an easy source of rare earth elements, especially in beach sands already being mined for titanium minerals."

The role of rare earth elements in international politics is becoming increasingly significant, particularly as countries seek to secure their supply chains against over-reliance on China. The transcript mentions that the US strategy under the Trump administration aimed to reduce dependency on Chinese imports, highlighting the geopolitical stakes involved in the rare earth supply chain. The need for these elements is critical for various technologies, including green technologies, which are vital for future sustainability efforts.

As the US ramps up exploration and production efforts, there is a clear shift towards enhancing domestic capabilities. This includes looking for geological signs that could indicate the presence of rare earth deposits, such as magnetic anomalies and carbonatite rings. The goal is to establish a more self-sufficient supply chain that can support the technological and industrial demands without relying heavily on imports.

Furthermore, the competition for rare earths can also affect diplomatic relations, as countries vie for access to these essential materials. The growing emphasis on rare earth exploration in countries like Australia and Canada reflects a broader strategic initiative to counterbalance China's market dominance.

• [07:41] "Projects like Mount Weld and Nolan’s bore show that the right geology can make a big difference, especially when paired with modern processing methods."
• [07:27] "The search for rare earths has become one of the biggest mineral exploration challenges of our time."

Several countries are known to have significant reserves of rare earth elements, with Australia, Canada, and the US being key players in the global market. Australia is noted for having some of the highest-grade rare earth deposits, particularly at Mount Weld, while California's Mountain Pass has historically been a major supplier. The transcript indicates that both of these locations are examples of carbonatites, which are rich in rare earths due to their unique geological formations.

Emerging players in the rare earth market include several nations that are ramping up exploration efforts to capitalize on their geological advantages. Countries such as India and Sri Lanka are also mentioned, particularly with regard to their placers deposits, which can be an easier source of rare earth elements.

As the demand for rare earths increases, these countries are working to establish themselves as competitive suppliers in a market that has been historically dominated by China. The strategic importance of rare earths in modern technology drives this exploration, as nations seek to secure their own supplies and reduce dependency on single-source countries.

• [03:14] "One of the best examples is Mount Weld in Western Australia, one of the highest grade rare earth deposits on the planet."
• [03:26] "Another famous one is Mountain Pass in California, which was the main global supplier for decades."

In the context of rare earth elements, the term 'critical' often refers to specific elements that are essential for modern technology yet are subject to supply chain vulnerabilities. The transcript does not specify which elements are labeled as 'critical', but it does emphasize that rare earths are crucial for technologies such as electric vehicles, wind turbines, and other green technologies.

Given the supply chain dynamics, the organizational structure is characterized by a few dominant players, primarily China, which has a near-monopoly on the production of rare earths. This creates vulnerabilities for countries dependent on imports, as disruptions in supply from China could have significant repercussions on global technological development.

The need for a diversified supply chain is critical, as countries like the US and Australia work to establish their own sources of rare earths, aiming to mitigate the risks associated with reliance on a single country. As exploration intensifies, understanding the vulnerabilities in the existing supply chains will be essential for ensuring a stable supply of these important elements.

• [07:19] "Without them, much of our high-tech world would grind to a halt."
• [07:54] "Rarity isn’t always about quantity. Sometimes it’s about circumstance."

The transcript does not mention any specific alternative technologies or innovations that reduce or eliminate the need for rare earth elements. It focuses primarily on the geological formation, mining, and processing challenges associated with these elements. The discussion is centered around the importance of rare earths in various technologies and the geopolitical implications of their supply.

As such, there is no detail provided regarding any substitutes or alternative materials that could potentially replace rare earth elements in technology. The emphasis remains on the critical role these elements play in modern applications and the ongoing search for economically viable deposits.

• [07:25] "The search for rare earths has become one of the biggest mineral exploration challenges of our time."
• [07:41] "The right geology can make a big difference, especially when paired with modern processing methods."

The transcript provides limited information regarding the recycling of rare earth elements. It does not delve into specific methods or processes for recycling, nor does it outline economic and technical criteria that countries or companies must consider before initiating mining operations. However, it does indicate that the complexity of processing rare earth elements poses challenges that must be addressed to make mining viable.

Moreover, the focus remains on the extraction and processing challenges faced by the industry, emphasizing the need for safe and environmentally responsible practices. As such, while recycling of rare earths is a relevant topic in the broader discussion of sustainability, it is not explored in detail within the transcript.

• [08:01] "So, while they’re common in the crust, turning them into usable materials is still a rare achievement."
• [08:07] "Turning them into usable materials is still a rare achievement."

[00:00] Rare Earths. The name sounds mysterious,
[00:03] doesn't it? It makes you think of
[00:04] something hidden deep inside the planet.
[00:06] Strange metals found only in tiny
[00:08] amounts in secret mines halfway around
[00:11] the world. You'd imagine they must be
[00:13] incredibly scarce. But here's the funny
[00:15] thing. Rare earths aren't actually rare
[00:17] at all. But let's start with what these
[00:19] things actually are.
[00:21] Rare earths are a group of 17 metallic
[00:24] elements that include names like
[00:25] neodymium, serium, and dprosium. They're
[00:28] the unsung heroes of modern technology,
[00:30] hiding in everything from electric cars
[00:32] and wind turbines to smartphones,
[00:35] headphones, and even fighter jets.
[00:37] They're what make electric motors
[00:38] powerful, magnet strong, and screens
[00:41] glow with color. So, you'd think these
[00:43] elements must be incredibly scarce to
[00:44] make them so valuable. But here's the
[00:46] surprising bit. Elements like serium are
[00:49] about as common in the Earth's crust as
[00:51] copper. Neodymium, the one used in
[00:53] magnets, is roughly as common as nickel.
[00:55] Even some of the so-called heavy rare
[00:57] earths like Dprosium are more abundant
[00:59] than silver. They're not hard to find,
[01:01] they're just hard to find together in
[01:03] rich concentrations. It's like gold dust
[01:06] sprinkled evenly through a beach. You
[01:08] might have gold everywhere, but if it's
[01:10] spread one atom thick across a
[01:11] continent, you're not setting up a mine
[01:13] anytime soon. That's exactly how rare
[01:15] earths exist everywhere, but too thinly
[01:18] spread to matter. So, if they're common,
[01:20] what stops us from mining them anywhere?
[01:22] The answer lies in the geology behind it
[01:24] all. When molten rock or magma rises
[01:27] from deep inside the planet, it's
[01:28] carrying a whole mix of chemical
[01:30] ingredients. Silicon, iron, aluminium,
[01:33] and lots of others, including rare
[01:34] earths. As that magma cools and starts
[01:37] to crystallize, most of those elements
[01:39] fit neatly into the minerals that form
[01:41] first. Things like felspar and pyroxine.
[01:44] But the rare earths, they don't fit.
[01:46] Their atoms are a bit too big and a bit
[01:47] too awkward. So, they get left behind in
[01:49] the remaining melt. Geologists call
[01:52] these incompatible elements because
[01:53] they're incompatible with most common
[01:55] minerals. Instead, they stay dissolved
[01:57] in a leftover magma, getting more and
[01:59] more concentrated as everything else
[02:01] turns solid. It's like making syrup. As
[02:03] you boil off the water, the sugar
[02:05] becomes thicker and more concentrated.
[02:07] If the process continues long enough,
[02:09] and if the chemistry is just right,
[02:11] those rare earths can finally start to
[02:12] crystallize into their own minerals. But
[02:14] that takes a very unusual set of
[02:16] conditions. The magma has to be the
[02:18] right type. The cooling has to happen
[02:20] slowly, and there needs to be the right
[02:22] mix of other elements and gases, things
[02:24] like florine, carbon dioxide, and
[02:26] chlorine, to keep the rare earths moving
[02:28] in fluids instead of being locked away
[02:30] too early. It's a geological balancing
[02:32] act, and nature doesn't pull it off very
[02:34] often. That's why economic rare earth
[02:36] deposits, ones rich enough to mine, are
[02:38] genuinely rare. But there are a few main
[02:41] environments where this magic
[02:42] combination happens. The biggest and
[02:44] richest rare earth deposits in the world
[02:46] come from something called carbonetites.
[02:49] These are strange volcanic rocks that
[02:50] form from magmas rich in carbon dioxide
[02:53] instead of the usual silica. They're
[02:55] incredibly uncommon, less than 1% of all
[02:57] ignous rocks, but they're powerhouses
[02:59] when it comes to rare earths. As these
[03:01] carbonide magmas cool, they release
[03:03] fluids loaded with rare earth elements.
[03:06] Those elements crystallize into minerals
[03:08] like basnosite and monazite, which are
[03:10] the main sources of rare earths today.
[03:12] One of the best examples is Mount Weld
[03:14] in Western Australia, one of the highest
[03:16] grade rare earth deposits on the planet.
[03:18] I've made a video on this deposit and
[03:20] you can find a link to that below.
[03:22] Another famous one is Mountain Pass in
[03:24] California, which was the main global
[03:26] supplier for decades. Both are cabonetes
[03:29] and both owe their richness to that rare
[03:31] blend of carbonri magma and latestage
[03:33] fluid activity that concentrated the
[03:35] elements into minimal ore. So when we
[03:37] say rare earth deposit, what we're
[03:39] really saying is this place had the
[03:40] perfect geological chemistry and
[03:42] depositional setting for rare earths and
[03:44] almost nowhere else did. Another kind of
[03:47] rare earth deposit forms in peralkaline
[03:49] ignous rocks. These are magmas that are
[03:51] unusually rich in sodium and potassium
[03:53] and poor in aluminium. A very odd mix.
[03:56] They evolve slowly like a thick stew
[03:58] simmering for ages and as they do they
[04:01] become packed with all sorts of exotic
[04:03] elements. zirconium, nobbium, uranium,
[04:06] and of course, rare earths. These rocks
[04:09] tend to concentrate the heavy rare earth
[04:11] elements, which are especially valuable
[04:12] for magnets and high-tech electronics.
[04:15] Deposits like Nolan's bore in the
[04:16] Northern Territory, and some deposits in
[04:18] green land form this way. They're rare
[04:21] because they need a long, stable
[04:22] geological setting where magma can
[04:24] evolve without being disturbed. A
[04:26] patient process measured in millions of
[04:27] years. Then there's a completely
[04:30] different kind of deposit, one that
[04:31] forms not from magma, but from weather.
[04:34] In warm tropical regions, rocks slowly
[04:36] break down over millions of years under
[04:38] constant rain and humidity. As this
[04:40] happens, small amounts of rare earths
[04:42] are leeched out of the minerals and
[04:43] carried downward by water. But instead
[04:45] of being washed away, they stick or
[04:47] absorb to the surfaces of clay particles
[04:49] in the soil. This creates what
[04:52] geologists call ion absorption deposits.
[04:54] Soft earthy layers where the rare earths
[04:56] are held loosely enough that they can be
[04:58] washed off with mild chemical solutions.
[05:01] Most of these are found in southern
[05:02] China, which is why China became the
[05:04] world's top producer of rare earths.
[05:06] They're lowgrade, but they're easy to
[05:08] mine. You don't need explosives or big
[05:10] crushes, just the right kind of gentle
[05:12] leeching. However, these deposits can
[05:14] only form where the climate stays hot,
[05:16] wet, and stable for millions of years.
[05:18] So they're geographically limited.
[05:21] Lastly, some rare earths are found in
[05:22] placida deposits much like gold. When
[05:24] rocks weather and erode, heavy minerals
[05:26] like monzite or xenotime wash
[05:28] downstream. Because they're dense, they
[05:30] settle in river beds or along
[05:32] coastlines. Over time, waves and
[05:34] currents sort these heavy grains into
[05:36] sandy layers rich in rare earth
[05:38] minerals. These deposits are common in
[05:40] places like India, Sri Lanka, and parts
[05:42] of Australia. In fact, there's currently
[05:44] a dispute between miners and farmers in
[05:46] Australia over the mining of rare earth
[05:48] plaet deposits in Victoria. I made a
[05:51] video on this, and you'll also find that
[05:52] in the description below. These deposits
[05:54] can be an easy source of rare earth
[05:56] elements, especially in beach sands
[05:58] already being mined for titanium
[05:59] minerals. So, what actually makes a
[06:01] deposit minable? To turn scattered
[06:03] elements into an or body, a few key
[06:05] things need to happen. The rock or magma
[06:08] has to contain rare earths. To begin
[06:09] with, the elements must be separated and
[06:12] gathered by geological processes like
[06:13] magmatic differentiation, fluid
[06:15] movement, or weathering. The deposit has
[06:18] to remain intact long enough for us to
[06:19] find it, not eroded away or buried too
[06:22] deep. It must be located in a way that
[06:24] makes mining practical. Good grade,
[06:26] reasonable depth, and stable ground.
[06:28] Even a rich deposit can be useless if
[06:30] it's too costly or damaging to extract.
[06:33] That's why rare earth mining isn't just
[06:35] about finding the right rocks. It's
[06:36] about finding the right balance of
[06:38] geology. geography and economics. So,
[06:41] now that we know these elements aren't
[06:42] rare in the crust, why do we still call
[06:44] them rare earths? The short answer is
[06:46] habit and a bit of truth. Even though
[06:48] the elements themselves are common, the
[06:50] deposits that can be mined economically
[06:52] are not. It's those deposits that are
[06:54] truly rare. For every thousand places on
[06:56] Earth with rocks containing rare earths,
[06:58] maybe one or two will have enough
[07:00] concentrated to make a mine worthwhile.
[07:02] That's what the name really means today.
[07:04] Rare Earths isn't about chemistry
[07:06] anymore. It's about geology and
[07:07] economics. the rarity of finding
[07:09] nature's perfect concentration. And that
[07:11] rarity matters because these minerals
[07:13] are essential to modern life. They're in
[07:15] wind turbines, electric vehicles,
[07:17] satellites, and all the green technology
[07:19] that's driving our future. Without them,
[07:21] much of our high-tech world would grind
[07:23] to a halt. The search for rare earths
[07:25] has become one of the biggest mineral
[07:27] exploration challenges of our time.
[07:29] Geologists are looking for subtle hints,
[07:31] magnetic anomalies, carbonetite rings,
[07:33] trace mineral patterns that point to
[07:35] hidden deposits underground. Australia,
[07:38] Canada, and the US are all ramping up
[07:40] exploration to reduce reliance on
[07:41] imports from China. Projects like Mount
[07:44] Weld and Nolan's bore show that the
[07:45] right geology can make a big difference,
[07:48] especially when paired with modern
[07:49] processing methods. But it's not easy.
[07:51] Rare earths often occur with other
[07:53] tricky elements like thorium, which is
[07:55] radioactive, or in minerals that are
[07:57] hard to separate. Processing them safely
[07:59] and cleanly requires advanced chemistry
[08:01] and careful environmental management.
[08:03] So, while they're common in the crust,
[08:05] turning them into usable materials is
[08:07] still a rare achievement.
[08:09] In the end, rare earths are a perfect
[08:11] reminder that rarity isn't always about
[08:13] quantity. Sometimes it's about
[08:15] circumstance. The Earth made plenty of
[08:17] these elements. They're sprinkled
[08:18] through almost every rock, every
[08:20] mountain range, and every grain of sand.
[08:22] But nature seldom gathered them in one
[08:24] place. And when she did, she made us
[08:26] work hard to find them. So the next time
[08:28] you're using your phone, driving an
[08:30] electric car, or turning on a wind
[08:31] powered light, remember you're using
[08:34] something built from metals that aren't
[08:35] rare because there's little of them, but
[08:37] because it's rare for nature to serve
[08:38] them up in a minable form. The rare
[08:41] product of perfect geological conditions
[08:43] that only come together once in a blue
[08:45] moon. Hope you found this as interesting
[08:47] as I did. And as always, thanks for
[08:50] watching.
[08:53] Before I end this video, I'd like to
[08:54] give a big shout out to my Patreon and
[08:56] YouTube members. Thank you so much to
[08:58] everyone that helps to support this
[09:00] channel.

Overview of Rare Earth Elements

Rare earth elements (REEs) are a group of soft metals primarily found in the lanthanoid series. Contrary to their name, they are not particularly rare in terms of abundance in the Earth's crust, as their concentrations are comparable to more familiar metals like copper and nickel. The term "rare" refers to the complexities involved in concentrating these elements into economically viable deposits, which is challenging due to their unique chemical properties.

Challenges in Extraction

REEs require specific geological conditions to form deposits, and their strong chemical bonds with other compounds make them stable and difficult to extract. Processing these elements often demands significant energy, typically involving strong acids and high temperatures. As a result, mining REEs necessitates handling large volumes of ore with low concentrations.

Applications of Rare Earth Elements

REEs are crucial in various modern technologies, earning the label "high-tech metals." They are integral to the manufacturing of electronics, including touch screens, flat-screen TVs, and high-performance magnets used in smartphones and electric vehicles. Notably, neodymium and praseodymium are essential for producing powerful permanent magnets in wind turbines and electric vehicle engines.

Geological Occurrence

REEs are found in three main types of deposits: sedimentary, magmatic, and weathering products. Sedimentary deposits, like placer deposits, accumulate through water flow sorting heavier minerals. Magmatic deposits arise from specific types of alkaline rocks and carbonatites. Weathering processes can also enrich REEs at the Earth's surface, forming laterite deposits.

Global Supply and Recycling Challenges

China dominates the global production and refining of REEs, raising concerns about supply chain vulnerabilities. Furthermore, recycling rates for REEs remain low, with less than 1% being reclaimed from waste due to technological and economic challenges. As demand for REEs grows, particularly driven by the energy transition, research into more efficient extraction and recycling methods is ongoing.

Rare Earth Elements (REEs) are a group of soft metals primarily belonging to the lanthanoid series. Despite their name, they are not particularly rare in terms of their abundance in the Earth's crust. In fact, many rare earth elements occur in concentrations similar to more familiar metals like copper, cobalt, and nickel. The term 'rare' reflects the challenges associated with the extraction of these elements rather than their scarcity.

The unique characteristics of rare earth elements include their particular chemical properties that make it challenging for them to concentrate into economically minable deposits. Unlike other metals such as copper or gold, which are easier to react with other compounds and form deposits through various geological processes, rare earths require very specific conditions to create viable concentrations. This difficulty arises because the chemical bonds formed by rare earth elements with other compounds are notably strong, making them chemically stable and requiring significant energy input, typically involving strong acids and high temperatures, for processing.

As a result, the extraction of rare earth metals is complex and energy-intensive. The presence of rare earth elements in the environment often requires processing large volumes of ore to obtain even small quantities of the metals. Thus, while they are not rare in abundance, the complexity of their geological and chemical properties contributes to their classification as rare.

• [00:29] 'Rare earth elements or rare earth metals are a group of soft metals mostly belonging to the so-called lanthanoid series.'
• [01:30] 'So rare earths are not called rare because they are scarce. The term is actually reflecting the difficulty for these elements to form minable or deposits.'
• [02:30] 'This means that rare earth minerals are chemically very stable.'

The formation of rare earth elements is contingent upon specific geological processes that allow for their concentration in a form that is economically viable for mining. These elements do not easily react with common compounds, which complicates their incorporation into mineral deposits. Their ions are relatively large and possess high field strength, leading to their incompatibility with many common rock-forming minerals like feldspars or mica.

Rare earth elements can be found in three main types of deposits: sedimentary, magmatic, and weathering products. Sedimentary deposits, particularly placer deposits, are formed through the sorting of sediments by water flow, where denser minerals accumulate in slower-flowing sections of rivers. Magmatic deposits originate from alkaline rocks and carbonatite magmas, which are known for their ability to incorporate significant amounts of rare earths during partial melting processes deep within the Earth.

In terms of technological developments, the transcript does not specify detailed advancements that make prospecting and mining more efficient or viable. However, it does mention that the geological conditions under which these elements form are vital in determining their location and concentration. Understanding these conditions helps guide exploration efforts in search of economically viable deposits.

• [06:30] 'Compared with most other metals, rare earth elements don’t easily react with compounds that would allow them to get enriched into or deposits.'
• [08:17] 'These rare earth or deposits can be broadly divided into three categories: sedimentary, magmatic and weathering products.'
• [12:34] 'The melt then rises through the crust and typically undergoes a process called fractional crystallization as it cools down.'

The mining, extraction, and refining of rare earth elements are complex processes characterized by significant technical challenges. The transcript outlines that rare earth elements require concentrated deposits to be economically viable for extraction. This process often involves mining large volumes of ore due to the low concentrations of these elements in the earth's crust.

Once the ore is extracted, it undergoes a refining process that includes the use of strong acids and high temperatures to break the chemically stable bonds of the rare earth minerals. The transcript emphasizes that this processing is energy-intensive, which poses logistical and environmental challenges. The technical complexity of these processes is a notable barrier, particularly for countries seeking to enter the rare earth market.

Moreover, the transcript indicates that refining capabilities are largely concentrated in China, which controls a significant portion of the global supply chain. This centralization poses risks for other countries that rely on these elements, particularly if geopolitical tensions arise. Countries are encouraged to enhance their refining and mining capabilities to mitigate the impact of potential supply disruptions, which are not explicitly detailed in the transcript.

• [18:22] 'This is due to inefficient collection infrastructure for waste containing rare earth elements, low rare earth concentrations in most waste products and technological difficulties.'
• [17:10] 'The refining of rare earth elements ores and the production of permanent magnets are almost completely controlled by just one country, China.'
• [10:56] '...the concentrations are too low to allow for economic extraction.'

The transcript does not provide specific details regarding environmental costs or health effects related to rare earth mining. It does mention that the extraction and processing of rare earth elements are energy-intensive and require the use of strong acids and high temperatures. This implies potential environmental risks due to chemical usage and energy consumption, although the transcript does not explicitly discuss pollutants or biological risks associated with mining activities.

However, it is important to highlight that mining activities, in general, can pose risks to both miners and surrounding communities, including exposure to hazardous materials, air and water pollution, and habitat destruction. The absence of specific health effects or pollutants in the transcript indicates a need for further research and investigation into these aspects.

• [16:40] '...the concentrations are too low to allow for economic extraction.'
• [19:36] '...potentially posing a little bit of a challenge in terms of resourcing our modern way of life and the energy transition.'
• [18:11] 'Recycling of rare earths is at present not very efficient.'

China's position in the rare earth market is notably dominant, as it is currently the largest producer of rare earth elements globally. The transcript outlines that while the USA and Myanmar follow in production, the scale of China's operations significantly overshadows others. This monopoly extends to the refining of rare earth elements and the production of permanent magnets, which are largely controlled by China. Such a concentration of power raises concerns about market disruptions and the vulnerability of the global supply chain.

The transcript notes that there have been instances where China has restricted the export of refined rare earth elements, which raises alarms for countries dependent on these materials for various industrial applications. In response, other nations are beginning to enhance their mining operations, but the transcript highlights that refining and manufacturing capabilities also need to be significantly improved to ensure a stable supply chain. This suggests that while efforts are underway to diversify sources, the geopolitical landscape remains fraught with challenges.

• [16:49] 'At present, China is the largest producer of rare earth elements ores followed by the USA and Myanmar.'
• [17:14] 'The reliance on a single country means that the global supply chain for rare earth elements is very susceptible to disruption.'
• [17:34] 'China having a history of restricting the export of refined rare earth elements and permanent magnets.'

The transcript does not specifically mention the role of rare earth elements in international politics or the US strategy under the Trump administration to reduce dependency on China. However, it does highlight the growing concerns regarding the global availability of these elements and the reliance on a single country for their supply. The implications of this dependence suggest potential geopolitical tensions, especially as other nations seek to establish their own mining and refining capabilities.

While direct details about the US strategy are absent, the context implies a push for greater independence in sourcing rare earth elements. This is likely driven by the recognition of the strategic importance of these materials in technology and energy transition, as highlighted by the ongoing efforts in various countries to enhance their rare earth production capabilities.

• [17:26] 'The global supply chain for rare earth elements is very susceptible to disruption.'
• [18:06] '...recycling of rare earths is at present not very efficient.'
• [19:34] '...potentially posing a little bit of a challenge in terms of resourcing our modern way of life and the energy transition.'

The transcript outlines that rare earth reserves are primarily located in countries such as China, the USA, and Myanmar, with production from these nations being the most significant on a global scale. While other countries are mentioned to have minor production capabilities, the focus remains on these three nations as the main players in the market. The transcript does not specify any 'new players' entering the market but implies that other countries are stepping up their efforts to mine rare earth elements as they seek to reduce dependency on China.

This development suggests that nations are recognizing the strategic importance of securing their own sources of rare earths, particularly in light of the geopolitical factors affecting supply chains. However, specific countries or companies that are emerging as 'new players' are not explicitly detailed in the transcript, indicating a potential area for further exploration and research.

• [16:58] 'At present, China is the largest producer of rare earth elements ores followed by the USA and Myanmar.'
• [17:04] 'Production elsewhere is very minor.'
• [17:48] 'Other countries are stepping up their efforts to mine rare earth elements...'

The transcript does not explicitly label which specific rare earth elements are deemed 'critical' nor does it provide a detailed breakdown of the organizational structure and vulnerabilities of the global supply chains. However, it does emphasize the importance of rare earths in modern technology and their essential role in various applications, such as electronics, magnets, and renewable energy technologies. The growing demand for these elements, particularly in the context of the energy transition, highlights the need for a robust supply chain.

While vulnerabilities are implied through the discussion of China's dominant position in the market, specific details on organizational structures or critical elements are not provided in the transcript. This leaves a gap for further inquiry into which elements are considered critical and the related supply chain dynamics.

• [06:18] 'The demand for most rare earth elements is growing and much of this is driven by the energy transition.'
• [17:22] 'The global supply chain for rare earth elements is very susceptible to disruption.'
• [17:12] 'The production of permanent magnets are almost completely controlled by just one country, China.'

The transcript does not mention any alternative technologies or innovations designed to reduce or eliminate the need for rare earth elements. Instead, it focuses on the essential role that these elements play in current technologies, particularly in high-performance magnets, electronics, and renewable energy applications. The discussion around rare earths primarily revolves around their extraction, processing, and the geopolitical implications of their supply, rather than exploring potential substitutes or alternative materials.

Given the growing demand for rare earth elements, further exploration into alternative technologies or innovations is warranted. The absence of this information in the transcript indicates an area where additional research could be beneficial, particularly in the context of sustainability and reducing reliance on rare earth materials.

• [19:34] 'Rare earth elements, not so rare in fact, but nevertheless potentially posing a little bit of a challenge in terms of resourcing our modern way of life.'
• [19:56] 'It’s going to be really exciting to see what the future holds for these intriguing earth resources.'
• [18:54] '...we still need to produce pretty much all of our rare earths from mining.'

The recycling of rare earth elements is currently a significant challenge, as highlighted in the transcript. It states that commercial recycling rates of rare earths are extremely low, with less than 1% being recycled from waste. This inefficiency arises from multiple factors: inadequate collection infrastructure for waste containing rare earth elements, low concentrations of rare earths in most waste products, and technological difficulties in extracting these elements once they have been blended with other metals.

Moreover, the transcript emphasizes that extracting rare earth elements from electronic waste, for instance, requires processing similar to that of primary ore, which can be economically unviable given the small quantities involved. This lack of economic incentive and technical viability poses significant barriers to recycling efforts. Researchers are actively working on new techniques aimed at improving the efficiency of rare earth recycling, but as of now, the industry remains heavily reliant on mining as the primary source for these critical materials.

• [18:14] 'Commercial recycling rates of rare earths is still extremely low with less than 1% of rare earths being recycled from waste.'
• [18:44] 'Extracting them out again can be very hard because you essentially have to process the material as you would process primary ore.'
• [19:24] '...we still need to produce pretty much all of our rare earths from mining.'

[00:06] Well, we all know that we need metals
[00:08] like iron, zinc, copper, and and so on
[00:12] to build all the things we need. But
[00:14] you've probably also heard about
[00:16] something called rare earth elements.
[00:19] But what are these rare earth elements?
[00:21] What do we need them for? And what's so
[00:23] rare about them in the first place?
[00:25] Well, let's find out.
[00:29] Rare earth elements or rare earth metals
[00:32] are a group of soft metals mostly
[00:35] belonging to the so-called lanthnoid
[00:37] series.
[00:39] Most of them are actually not rare at
[00:41] all. If we consider the concentration of
[00:44] elements in the earth's crust, most rare
[00:47] earth elements occur in similar
[00:49] concentrations as the more familiar
[00:51] metals like copper, cobalt, and nickel.
[00:56] Gold and platinum for instance are much
[00:58] rarer.
[01:01] So why are they called rare earths? Then
[01:06] these elements have particular chemical
[01:08] properties that makes it quite difficult
[01:10] for them to concentrate into one place
[01:12] in the earth's crust.
[01:15] And to make a minable or deposit, you
[01:17] need to concentrate an element typically
[01:20] by hundreds or even thousands of times
[01:23] compared to the average crystal
[01:24] abundance.
[01:27] Most other metals such as copper,
[01:29] cobalt, and gold have properties that
[01:32] makes it relatively easy for these
[01:34] metals to react with other compounds and
[01:36] form or deposits via various geological
[01:39] processes.
[01:41] but not so for rare earths which require
[01:44] very special conditions to form or
[01:46] deposits. And we'll look at these a bit
[01:48] more closely later in this video.
[01:52] But even where these elements do form an
[01:54] or deposit, the concentration is fairly
[01:57] low, meaning you have to process a very
[02:00] large volume of ore.
[02:03] What's more, the chemical bonds that
[02:05] rare earths form with other compounds
[02:08] are very strong, much stronger than for
[02:11] most other or minerals.
[02:15] This means that rare earth minerals are
[02:17] chemically very stable. So, you have to
[02:19] put a lot of energy into the processing
[02:22] to break those bonds, typically using
[02:25] very strong acids and very high
[02:27] temperatures.
[02:30] So rare earths are not called rare
[02:32] because they are scarce. The term is
[02:34] actually reflecting the difficulty for
[02:37] these elements to form minable or
[02:38] deposits and for us humans to extract
[02:41] the metals.
[02:44] >> So what do we need these rare earths for
[02:47] then? Let's have a closer look.
[02:51] The general term rare earth elements
[02:53] covers 15 to 17 elements depending on
[02:56] the exact definition of the term.
[03:00] Most of these you won't hear about very
[03:02] often but they all have some really
[03:04] important uses in the modern world and
[03:07] the applications of rare earths is
[03:10] continuously expanding as researchers
[03:12] find new uses for them.
[03:16] Rare earth elements are sometimes called
[03:18] high-tech metals and for a good reason.
[03:22] Rare earths are all around us in foam
[03:25] touch screens, flat screen TVs and other
[03:28] electronics, metal alloys, lead lights,
[03:32] optical fibers, lasers, self cleaning
[03:36] ovens and so on.
[03:40] Serium, neodymium and lanthanum are the
[03:43] most used rare earth elements globally.
[03:47] Most rare earths are used as catalysts
[03:49] in the chemical industry and in the
[03:52] production of high performance magnets.
[03:55] Particularly neodymium, praodmium,
[03:59] turbium and disprosium are used in super
[04:02] strong magnets which are a vital
[04:04] component in electronics including
[04:06] smartphones and electric car engines.
[04:11] Then there are various types of lasers
[04:14] where rare earth ions absorb energy and
[04:17] then remit that energy as light.
[04:21] Other important applications are for
[04:24] example fiber optics which are used in
[04:27] things like telecommunications.
[04:31] So rare earth elements are very
[04:34] important for all kinds of modern
[04:36] technology. So really really important
[04:39] for our modern way of life. But an
[04:42] increasingly important application for
[04:45] rare earth elements
[04:47] is that stuff over there.
[04:51] Wind turbines converts the kinetic
[04:54] energy provided by the wind to
[04:56] electrical energy.
[04:59] This conversion happens in the generator
[05:01] which is hosted in the N cell of the
[05:03] turbine and that generator needs
[05:06] powerful permanent magnets
[05:09] and that's where the rare earth elements
[05:11] come in.
[05:13] Neodymium and praodmium for example
[05:16] strengthen the metals used in the
[05:18] magnets and disprosium and turbium make
[05:22] them resistant to demagnetization.
[05:27] So these rare earths are essential for
[05:29] building wind turbines that can produce
[05:31] energy for longer and more efficiently.
[05:36] So rare earths play an important role in
[05:39] the energy transition not only in terms
[05:41] of the permanent magnets for the wind
[05:44] turbines but also things like electric
[05:46] vehicles.
[05:49] The engines within electric vehicles
[05:51] also need permanent magnets similar to
[05:54] those used in wind turbines.
[05:57] In addition, some rare earths are
[05:59] already used in certain types of
[06:01] batteries. But research is also going on
[06:04] into whether rare earth elements such as
[06:06] itrim could enhance the performance of
[06:09] lithium ion batteries that are used in
[06:11] electric vehicles and many other
[06:13] everyday electronics.
[06:16] The demand for most rare earth elements
[06:18] is growing and much of this is driven by
[06:21] the energy transition. So building wind
[06:24] turbines and electric vehicles.
[06:28] >> Let's now have a look at where in the
[06:30] geological environment rare earth
[06:32] elements occur.
[06:36] Compared with most other metals, rare
[06:39] earth elements don't easily react with
[06:41] compounds that would allow them to get
[06:43] enriched into or deposits.
[06:47] Rare earth element ions are essentially
[06:50] larger than many other ions and they
[06:52] also have high field strength which
[06:55] basically means that they have strong
[06:57] electromagnetic fields.
[07:00] These properties make rare earth
[07:02] elements incompatible which means it is
[07:05] difficult for rare earths to get
[07:06] incorporated into most common rock
[07:09] forming minerals like felspars or mica.
[07:14] Rare earth elements don't react with
[07:16] sulfur either. So unlike most other
[07:19] metals like copper and cobalt, they
[07:21] won't get enriched as sulfides.
[07:25] But there are some minerals that are
[07:28] capable of incorporating significant
[07:30] amounts of rare earths. The trouble is
[07:33] these minerals don't usually make up a
[07:36] very large portion of any given volume
[07:40] of rock or or sediment. There are
[07:42] exceptions.
[07:45] There are minerals that can incorporate
[07:48] rare earth elements in small amounts and
[07:50] some of these are fairly common. But it
[07:53] is rare for them to contain significant
[07:55] amounts of rare earths or for these
[07:58] minerals to occur in large enough
[07:59] quantities to make aminable or deposit.
[08:05] But sometimes in very specific
[08:07] conditions rare earth elements and
[08:09] minerals containing them do get
[08:12] concentrated in sufficient quantities to
[08:14] make an or deposit.
[08:17] These rare earth or deposits can be
[08:19] broadly divided into three categories
[08:22] sedimentary
[08:24] magmatic and weathering products.
[08:28] Let's look at the sedimentary deposits
[08:30] first.
[08:33] The most important of these are the
[08:35] so-called placer deposits, also called
[08:38] aluvial deposits.
[08:42] These form when the flow of water sorts
[08:44] the sediments depending on the
[08:46] differences in the density of the
[08:49] different minerals.
[08:52] The minerals are initially eroded from a
[08:54] source rock. So in river systems for
[08:57] example, the rivers transport the
[08:59] minerals gradually downstream from the
[09:02] source upstream.
[09:06] When the water reaches a slower portion
[09:08] of the river, the heavier minerals
[09:10] accumulate in areas where the velocity
[09:13] of the water flow drops significantly.
[09:17] This is because a slower velocity of
[09:20] water can't keep moving the heavier
[09:22] particles even when the river is
[09:24] flooding.
[09:27] So for example in meandering rivers the
[09:31] inside bends where the water flow is
[09:33] slower are ideal for depositing the
[09:36] heavier particle as the water loses its
[09:39] capability to transport the heavier
[09:41] material.
[09:44] You can see this process in action in
[09:46] any river. So the boulders and the
[09:48] gravel which are heavy tend to
[09:51] accumulate as gravel bars on the inside
[09:53] bends of rivers whilst the outside bend
[09:56] of the river is eroded and steep as all
[09:59] material gets carried away.
[10:04] Some minerals that can contain a lot of
[10:06] rare earth elements can be accumulated
[10:08] in this way because they are relatively
[10:11] dense and resist weathering in surface
[10:14] conditions.
[10:16] The most important of these is the
[10:18] mineral called monazite
[10:20] which can contain economic amounts of
[10:23] for example serium, lanthanum and
[10:26] neodymium.
[10:28] Also cenotine which contains things like
[10:32] itrium, disprosium or turbium can form
[10:35] minable placid deposits.
[10:39] Monocytes and xenotime sands are
[10:41] currently mined for example in India and
[10:44] Australia. Although in most cases
[10:47] placits are mined for other commodities
[10:50] such as tin or phosphates and the rare
[10:52] earths are a byproduct.
[10:56] And apart from these rather special
[10:58] types of sediments, there are also some
[11:00] rare types of magmas that can also
[11:03] contain significant amounts of rare
[11:05] earths.
[11:07] Magmas, which of course are volumes of
[11:10] molten rock, can form at various depths
[11:13] within the earth.
[11:16] The magmatic rocks that can be rich in
[11:18] rare earth elements are usually either
[11:20] so-called alkaline rocks such as
[11:22] cyamides or certain types of granits and
[11:25] pigmatides or carbonetite magmas.
[11:30] Carbonetite magmas are themselves quite
[11:33] special as they contain at least 50% of
[11:36] carbonate minerals which is very rare
[11:39] for magmatic rocks.
[11:42] Carbonet and alkaline magmas are closely
[11:45] related and they often occur together.
[11:49] They both originates from great depths
[11:51] within the earth, the mantle.
[11:56] Very early in the earth's history, the
[11:59] rare earth elements were incorporated
[12:01] preferentially into the mantle rocks.
[12:05] When the mantle rocks undergo partial
[12:07] melting such as happens in areas where
[12:10] the continents are rifting, the
[12:12] incompatible elements such as the rare
[12:15] earths are among the first to go into
[12:17] the melt.
[12:20] Particularly the so-called light rare
[12:22] earth elements such as serium and
[12:24] neodymium go easily into these partial
[12:27] melts because they form larger ions than
[12:30] the so-called heavy rare earths.
[12:34] The melt then rises through the crust
[12:36] and typically under goes a process
[12:39] called fractional crystallization as it
[12:41] cools down.
[12:44] This helps to further enrich rare earth
[12:46] elements.
[12:49] In this process, the crystals that form
[12:51] first do not easily incorporate the
[12:54] incompatible elements such as the rare
[12:56] earths,
[12:58] particularly those lighter rare earths
[13:00] that have larger ions.
[13:03] Instead, these get enriched in the
[13:06] remaining magma.
[13:09] Rare earth rich minerals can then
[13:11] crystallize from this remaining magma or
[13:14] the remaining magma can be transported
[13:16] elsewhere to form new rare earth rich
[13:19] intrusions.
[13:22] Magmatic rocks are at the moment the
[13:24] main source of rare earth elements
[13:26] globally. Particularly the carbonetite
[13:29] rocks and rocks around these intrusions
[13:31] that have been intruded by the rare
[13:33] earth rich magmatic fluids.
[13:37] Rare earth carbonetite ores contain very
[13:39] special rare earth minerals such as
[13:42] bastonite parasites
[13:45] and cisite
[13:47] all of which are typically enriched in
[13:49] light rare earths like serium and
[13:51] neodymium
[13:53] but even more common minerals that are
[13:55] found in these flocks such as appetite
[13:58] or monazite can contain lots of rare
[14:01] earths
[14:03] for example the bayan ober mine in
[14:05] northern China is hosted in rocks
[14:07] affected by carbonetite magmatic fluids
[14:11] and is presently the largest rare earth
[14:13] element mine on earth.
[14:17] Now the third important deposit type for
[14:20] rare earth elements forms right here at
[14:23] the earth's surface via the process of
[14:25] weathering and weathering can be a very
[14:28] efficient way of enriching all kinds of
[14:30] metals into minable or deposits.
[14:36] The deposits that are formed via
[14:38] weathering are called laterite deposits.
[14:41] Laterite is in fact a soil type that
[14:44] forms via deep weathering in tropical
[14:46] and subtropical regions, particularly
[14:49] those with alternate wet and dry
[14:51] periods.
[14:53] When the weathering rocks include rocks
[14:55] that contain rare earth elements such as
[14:57] carbonet, the rare earths can be
[15:00] enriched into nor deposit even if the
[15:03] original rock might not be very rich in
[15:05] valuable metals and elements.
[15:08] Surface waters gradually weather the
[15:10] bedrock, breaking down the minerals that
[15:13] contain the rare earth elements.
[15:16] The rare earths and other compounds then
[15:19] travel downwards and accumulate within
[15:21] specific layers within the soil profile.
[15:26] A good example of this is the Mount Weld
[15:28] mine in Australia where weathering of a
[15:32] carbonetide rock has resulted in the
[15:34] formation of a laterite zone up to 70 m
[15:37] thick enriched in specific rare earth
[15:40] minerals.
[15:42] But slerite soils also contain clay
[15:45] minerals. And clay minerals are often
[15:48] electrically slightly charged.
[15:52] So they can actually attract rare earth
[15:55] ions that have been removed from the
[15:57] original rock so that the rare earth
[15:59] ions attach themselves onto the surface
[16:02] of the clay minerals.
[16:05] These are so-called iron absorption clay
[16:08] deposits. They are not usually very high
[16:11] grade but they are relatively easy to
[16:14] process to extract the rare earth
[16:16] elements compared to rare earth
[16:18] minerals.
[16:20] The majority of the heavier rare earth
[16:22] elements such as disposium and turbium
[16:25] are actually currently extracted from
[16:27] iron absorption clay deposits.
[16:30] So geologically the sources for rare
[16:33] earth elements are quite diverse even
[16:35] though in most cases the concentrations
[16:38] are too low to allow for economic
[16:40] extraction.
[16:42] And as the demand for rare earth and
[16:44] indeed all other metals keeps increasing
[16:47] there are also some geopolitical
[16:49] concerns regarding the global
[16:51] availability of rare earth elements.
[16:55] At present, China is the largest
[16:58] producer of rare earth elements ores
[17:01] followed by the USA and Myanmar, whilst
[17:04] production elsewhere is very minor.
[17:08] What's more, the refining of rare earth
[17:10] elements ores and the production of
[17:12] paranid magnets are almost completely
[17:14] controlled by just one country, China.
[17:19] The reliance on a single country means
[17:22] that the global supply chain for rare
[17:24] earth elements is very susceptible for
[17:26] disruption.
[17:30] There have already been some concerns
[17:32] about this with China having a history
[17:34] of restricting the export of refined
[17:37] rare earth elements and permanent
[17:38] magnets. Most recently this year,
[17:43] other countries are stepping up their
[17:45] efforts to mine rare earth elements, but
[17:48] refining and magnet manufacturing
[17:51] capabilities also need to be
[17:53] significantly enhanced to reduce the
[17:56] impact of potential supply disruptions.
[18:00] So there are concerns globally about the
[18:02] availability of rare earth elements and
[18:06] this is not helped by the fact that
[18:08] recycling of rare earths is at present
[18:11] not very efficient.
[18:14] Commercial recycling rates of rare
[18:16] earths is still extremely low with less
[18:19] than 1% of rare earths being recycled
[18:22] from waste.
[18:24] This is due to inefficient collection
[18:26] infrastructure for waste containing rare
[18:28] earth elements, low rare earth
[18:31] concentrations in most waste products
[18:34] and technological difficulties.
[18:37] In electronics and permanent magnets,
[18:40] the rare earths have been blended with
[18:42] other metals. So extracting them out
[18:44] again can be very hard because you
[18:47] essentially have to process the material
[18:50] as you would process primary ore.
[18:54] But perhaps more critically, a
[18:56] computer's hard disk drive, for example,
[18:59] might contain just a few grams of rare
[19:01] earth elements. So a major hurdle in
[19:04] recycling rare earths is the lack of
[19:06] economic incentive and viability.
[19:11] Researchers are continuously working on
[19:14] new techniques that hopefully make it
[19:16] easier and therefore more viable to
[19:18] refine and recycle rare earth elements.
[19:22] But at present, we still need to produce
[19:24] pretty much all of our rare earths from
[19:26] mining.
[19:29] So rare earth elements, not so rare in
[19:32] fact, but nevertheless potentially
[19:34] posing a little bit of a challenge in
[19:36] terms of resourcing our modern way of
[19:39] life and the energy transition.
[19:42] Research into rare earth elements is a
[19:44] relatively new field in earth sciences
[19:47] and indeed in terms of their industry
[19:50] applications. So it's going to be really
[19:53] exciting to see what the future holds
[19:56] for these intriguing earth resources.

The video discusses the critical role of rare earth elements in modern technology, including wind turbines, smartphones, and electric cars, emphasizing their importance for the global economy and the green transition. However, the rising demand for these elements is leading to resource depletion, with current mining practices being both costly and environmentally damaging. Notably, only 1% of rare earth elements are recycled, highlighting a significant gap in sustainability efforts.

A company near Paris is showcased for its innovative waste collection and recycling processes, which include electronic appliances. Despite their efforts, the company notes that extracting rare earth elements from devices is not financially viable, as the complexities and costs involved in recycling these materials remain prohibitively high.

As Europe and the US seek to reduce reliance on China, which currently produces over 60% of the world's rare earth elements, there is a growing interest in untapped resources. The video features a chemist in Zurich who identifies light bulbs as rich sources of rare earth elements, particularly europium. These bulbs, often discarded as toxic waste, contain significantly higher concentrations of europium than natural sources, indicating a lost opportunity for resource recovery.

Additionally, the video introduces Marip, a young scientist who has made a breakthrough in recycling rare earth elements without generating toxic waste. Her unexpected discovery involves using sulfur to separate these elements from other materials, achieving a high purity level in a single step, contrasting sharply with traditional methods that are slow and polluting. This innovative approach could revolutionize the recycling of rare earth elements, making the process more efficient and sustainable.

Rare earth elements (REEs) are a group of 17 metals that possess unique properties, such as magnetic, optical, and electronic attributes. They are not actually rare in terms of abundance in the Earth's crust; rather, their occurrence is highly dispersed and typically found in low concentrations. This makes mining and extraction particularly challenging. The transcript highlights that these elements include europium, scandium, and others that are vital in various modern technologies, including smartphones, electric vehicles, and renewable energy technologies.

The distinction between rare earth minerals and processed metals is crucial. Rare earth minerals are naturally occurring compounds that contain these elements, often mixed with other minerals. In contrast, processed metals are refined products obtained after extensive extraction and separation processes. The complexity of these processes is illustrated by the statement that producing one ton of rare earths generates at least 2,000 tons of toxic waste, which includes radioactive materials.

Moreover, the current recycling rate for rare earth elements is alarmingly low, at just 1%. The complexity and cost associated with recycling these elements from products such as smartphones and electronics further highlight the challenges in transitioning to a more sustainable use of rare earths. As the demand for these elements increases, the need for efficient recycling methods and new extraction technologies becomes increasingly urgent.

• [02:37] "Europium, scandium, or atrium. A group of 17 metals with unique magnetic, optical, and electronic properties."
• [03:01] "Producing one ton of rare earths generates at least 2,000 tons of toxic waste, including radioactive material."
• [00:30] "Only 1% are currently recycled."

Formation and Location of Rare Earth Elements

Rare earth elements are formed through various geological processes, primarily during the formation of igneous rocks and the weathering of certain minerals. They are typically found in granite and pegmatite formations, as well as in some sedimentary deposits. The transcript does not provide specific geological conditions or mechanisms for their formation, but it emphasizes that these elements are not necessarily rare in terms of abundance; they are simply difficult to extract due to their low concentrations and the intricate processes required for separation.

The transcript mentions that significant reserves of rare earth elements are primarily located in China, where more than 60% of the world's supply is mined. This monopolistic control over supply chains poses a geopolitical risk, especially as Western countries seek to reduce their dependence on Chinese sources. Additionally, the identification of alternative sources and the development of new mining technologies are critical for future supply security.

Although specific technical developments are not detailed in the transcript, there is a suggestion that innovations in extraction methods could enhance the viability of prospecting and mining activities. Advances in chemical processes, such as the unexpected discovery by a young scientist who used sulfur to separate rare earth elements, indicate potential pathways for improving extraction efficiency.

• [01:44] "More than 60% of the world's rare earth elements are mined in China."
• [02:06] "These light bulbs are extremely rich in rare earth elements, including one called europium."
• [04:34] "Sulfur molecules had never been applied to rare earth elements until now."

The process of mining, extraction, and refining rare earth elements is characterized by its technical complexity and substantial environmental impact. Mining typically involves extracting ore that contains rare earth minerals, which are then subjected to a series of processes to isolate the individual elements. The transcript highlights that producing one ton of rare earths generates at least 2,000 tons of toxic waste, which includes hazardous and radioactive materials, indicating the significant environmental costs associated with this industry.

Once mined, the ore undergoes crushing, grinding, and chemical processing to separate the rare earth elements from other materials. This process is not only technically intricate but also expensive, which poses a barrier to efficient extraction. The transcript mentions that recovering rare earth elements from electronic waste is currently not financially viable due to the high costs involved and the complexity of extraction methods. As a result, only a minimal percentage of these elements are recycled, leading to a waste of resources.

A significant challenge identified in the transcript is that while there is interest in recycling rare earths, the current practices remain slow, energy-intensive, and highly polluting. This has led to calls for more sustainable and efficient recycling technologies, which could help mitigate some of the environmental impacts associated with traditional mining methods.

• [03:01] "Producing one ton of rare earths generates at least 2,000 tons of toxic waste, including radioactive material."
• [01:19] "Extracting them from smartphones isn’t financially viable."
• [04:44] "The entire process could be achieved in a single container."

The environmental costs associated with rare earth mining are substantial and multifaceted. The transcript indicates that the production of rare earth elements generates a significant amount of toxic waste, with the staggering figure of at least 2,000 tons of toxic waste produced for every ton of rare earths mined. This waste often includes harmful substances such as radioactive materials, which pose serious health risks to miners and local residents.

In addition to the direct health hazards faced by workers in the mining industry, the environmental degradation resulting from mining activities can have profound impacts on surrounding communities. The transcript does not delve into specific health effects on miners or residents but implies that the presence of toxic waste and pollutants can lead to long-term ecological damage and potential health issues.

Furthermore, the current recycling rate of rare earth elements is alarmingly low, at only 1%. This inefficiency in recycling not only contributes to resource depletion but also exacerbates environmental pollution, as discarded electronic products often end up in landfills, where valuable rare earth elements are lost. The need for more efficient recycling methods is underscored as a critical component in reducing the environmental impact of rare earth mining.

• [03:01] "Producing one ton of rare earths generates at least 2,000 tons of toxic waste, including radioactive material."
• [00:30] "Only 1% are currently recycled."
• [02:30] "It’s a huge waste of resources."

China's Position in the Market

China holds a dominant position in the global market for rare earth elements, as it is responsible for mining more than 60% of the world's supply. This monopolistic control has significant geopolitical implications, especially as Western countries, including the United States, seek to reduce their dependency on Chinese sources for these critical materials. The transcript notes that the race to break China's stranglehold over rare earths is intensifying, particularly in Europe and the US.

The impact of illegal mining activities is also a concern, although the transcript does not provide specific details regarding the scale or effects of these operations. However, the overarching theme suggests that illegal mining could disrupt market stability and contribute to environmental degradation.

China's extensive control over the rare earth supply chain raises questions about security and reliability for countries reliant on these materials for their technology and green energy initiatives. This situation compels nations to explore alternative sources and to invest in new mining technologies that could potentially lessen their dependence on China.

• [01:44] "More than 60% of the world's rare earth elements are mined in China."
• [00:20] "As demand rises, resources are fast depleting."
• [01:41] "As Europe and the US race to break China’s stranglehold over the precious minerals."

International Politics and Rare Earth Elements

Rare earth elements are increasingly intertwined with international politics, particularly as nations strive to secure their supplies amid growing demand. The transcript mentions the efforts by the United States, particularly under the Trump administration, to reduce reliance on China for these critical materials. This strategy was driven by concerns over national security and the implications of being dependent on a single country for essential resources that are integral to advanced technologies and green energy transitions.

The urgency to break away from Chinese dominance in the rare earth sector has led to increased exploration and investment in domestic mining operations in the United States and Europe. The race for self-sufficiency in rare earth elements is not just about economic considerations but also about ensuring national security in an increasingly competitive global landscape.

Although the transcript does not provide specific details regarding the policies implemented during the Trump administration, it highlights the broader geopolitical context in which rare earth elements operate. This context underscores the importance of these materials in shaping international relations and influencing economic strategies among competing nations.

• [01:44] "As Europe and the US race to break China’s stranglehold over the precious minerals."
• [00:15] "They’re vital for the global economy and the green transition."
• [00:20] "As demand rises, resources are fast depleting."

Global Reserves and New Players in the Market

The transcript does not provide a comprehensive list of countries where rare earth reserves are located. However, it emphasizes that China is currently the leading player, mining more than 60% of the world's rare earth elements. As the global demand for these materials increases, there is a growing interest from other nations to explore and develop their own resources.

The concept of new players entering the market is mentioned, indicating that there may be emerging countries or companies looking to capitalize on the demand for rare earth elements. Specific details regarding their current progress or strategic importance, however, are not provided in the transcript.

As nations seek to secure their supply chains and reduce dependence on China, the potential for new mining operations and investments in rare earth exploration is likely to expand. This shift could lead to a more diversified market landscape, though the transcript does not elaborate on specific developments or countries that are currently positioning themselves as alternatives to China.

• [01:44] "More than 60% of the world's rare earth elements are mined in China."
• [02:02] "We’re sitting on a pile of unexploited minerals."
• [02:30] "It’s a huge waste of resources."

Critical Rare Earth Elements

The transcript mentions specific elements such as europium and scandium as part of the group of 17 rare earth metals that possess unique properties. However, it does not provide a definitive list of which specific elements are labeled as 'critical' in the context of international supply chains.

The vulnerabilities in global supply chains for rare earth elements are significant, especially given the monopolistic control of China over production. The lack of efficient recycling processes (only 1% of rare earth elements are currently recycled) exacerbates these vulnerabilities, making countries reliant on a single source for essential materials.

The geopolitical implications of these vulnerabilities are profound, leading to increased scrutiny of supply chain security and the need for nations to develop alternative sources. The transcript does not elaborate on the organizational structure of these supply chains, but the overarching theme indicates a pressing need for diversification to mitigate risks associated with dependency on a single country.

• [01:53] "This French American chemist based in Zurich says we’re sitting on a pile of unexploited minerals."
• [02:06] "These light bulbs are extremely rich in rare earth elements, including one called europium."
• [00:30] "Only 1% are currently recycled."

Alternative Technologies and Innovations

The transcript mentions a significant breakthrough by a young scientist who has developed a method for recycling rare earth elements without producing toxic waste. This innovative approach utilizes sulfur in a chemical reaction that allows for the separation of rare earth elements from other materials. The scientist discovered that rare earth elements can interact with sulfur molecules, a finding that was previously counterintuitive to conventional chemistry.

This new method enables a high level of efficiency, achieving 90% purity of rare earth oxide in a single step, compared to the thousands of steps required by traditional industrial processes. The ability to conduct the entire extraction process in a single container not only simplifies the operation but also minimizes the environmental footprint associated with rare earth extraction.

The mechanics of this technology represent a significant advancement in the field, potentially transforming how rare earth elements are recycled and extracted in the future. By minimizing the toxic waste generated during the process, this innovation could pave the way for a more sustainable approach to managing these critical materials.

• [04:41] "We can achieve 90% purity of rare earth oxide in a single step compared to thousands of steps using industrial products currently on the market."
• [04:33] "Sulfur molecules had never been applied to rare earth elements until now."
• [03:38] "They do interact and that sulfur can break rare earth elements apart."

Recycling of Rare Earth Elements

The transcript indicates that the current recycling rate for rare earth elements is a mere 1%, highlighting a significant gap in efficient resource management. This low rate of recycling is attributed to the high costs and technical complexity involved in extracting these materials from electronic waste, such as smartphones and other appliances.

Before initiating mining operations, countries or companies must consider several economic and technical criteria, although the transcript does not explicitly list these factors. However, the challenges associated with recycling suggest that potential operators should evaluate the financial viability of their processes, the environmental impact of mining, and the technological advancements that could facilitate more efficient extraction.

As nations and companies look to secure their supplies of rare earth elements, the development and implementation of effective recycling strategies will be critical. This includes investing in technologies that can enhance the recovery of rare earths from waste, thereby reducing the reliance on primary mining and mitigating environmental damages associated with traditional extraction methods.

• [00:30] "Only 1% are currently recycled."
• [01:19] "Extracting them from smartphones isn’t financially viable."
• [04:44] "The entire process could be achieved in a single container."

[00:04] wind turbines, smartphones, drones,
[00:07] electric cars, and even missiles.
[00:12] All relying on rare earth elements.
[00:15] They're vital for the global economy and
[00:17] the green transition. But as demand
[00:20] rises, resources are fast depleting.
[00:24] Mining them is not only expensive, it's
[00:26] highly polluting. and only 1% are
[00:30] currently recycled.
[00:33] Outside Paris, this company collects all
[00:36] kinds of waste, including electronic
[00:39] appliances.
[00:41] >> Some are brand new. We truly live in a
[00:44] consumer society.
[00:46] >> Waste is sorted and [music] sent for
[00:48] recycling. From cardboard to gold,
[00:51] nothing goes to waste except rare earth
[00:55] elements.
[00:58] They're in smartphones, computer
[01:00] screens,
[01:02] and you can also find them in
[01:03] motherboards and in memory chips.
[01:10] >> The company says the highly coveted
[01:12] minerals trapped in these [music]
[01:14] appliances don't have a buyer.
[01:17] Extracting them from smartphones isn't
[01:19] financially viable.
[01:24] Recovering a small amount of rare earth
[01:26] elements from equipment like this is
[01:28] very complex and expensive. There's an
[01:31] interest in doing it, but the cost of
[01:32] recycling is too high.
[01:38] >> But perhaps not for long. As Europe and
[01:41] the US race to break China's strangle
[01:44] hold over the precious minerals, more
[01:46] than 60% of the world's rare earth
[01:49] elements are mined in China. This French
[01:53] American chemist based in Zurich says
[01:56] we're sitting on a pile of unexploited
[01:58] minerals. [music]
[02:02] >> These light bulbs are extremely rich and
[02:04] rare earth elements, including one
[02:06] called europium, known for its
[02:08] luminescent properties. When you shine a
[02:10] UV light on the bulbs, they get a
[02:12] reddish pink hue.
[02:15] This bin right here is a treasure trove
[02:17] of rare earths. Each bulb contains up to
[02:20] 20 times more europium than natural
[02:22] minerals.
[02:23] Made with mercury, they're labeled as
[02:26] toxic waste and destined to be
[02:28] landfilled.
[02:30] >> It's a huge waste of resources.
[02:37] Europium, scandium, or atrium. A group
[02:40] of 17 metals with unique magnetic,
[02:44] optical, and electronic properties.
[02:46] They're actually abundant throughout the
[02:48] Earth's crust, only highly dispersed in
[02:52] low concentrations [music] and blended
[02:54] together, making them difficult to mine
[02:57] and separate. [music]
[02:58] Producing one ton of rare earths
[03:01] generates at least 2,000 tons of toxic
[03:04] waste, including radioactive material.
[03:09] At just 28 years old, Marip has made a
[03:13] major breakthrough in efforts to recycle
[03:16] rare earth elements without any toxic
[03:19] waste. The young scientist had no
[03:22] intention of extracting the crucial
[03:23] minerals, but made the unexpected
[03:26] discovery while trying to make
[03:28] fertilizers in her lab using sulfur.
[03:32] >> This was quite counterintuitive from a
[03:34] chemist point of view because rare earth
[03:36] elements don't necessarily interact with
[03:38] sulfur molecules, but we realize that
[03:40] they do interact and that sulfur can
[03:42] break rare earth elements apart.
[03:47] >> [laughter]
[03:53] >> A light bulb is just a glass tube with
[03:55] phosphor powder. And this white powder
[03:57] contains rare earth elements like
[03:59] europium.
[04:01] Now this liquid is our extracting
[04:03] solution made with metal and sulfur.
[04:06] We're going to add a mix of rare earth
[04:08] elements which are commonly found in
[04:09] light bulbs.
[04:13] One rare earth element will crystallize
[04:15] and turn solid while the other remains
[04:17] trapped in the liquid solution. An
[04:20] almost instant chemical reaction.
[04:24] >> You can see the separation quite clearly
[04:29] commonly used in the prochemical
[04:31] industry. Sulfur molecules had never
[04:33] been applied to rare earth elements
[04:36] until now.
[04:39] We can achieve 90% purity of rare earth
[04:42] oxide in a single step compared to
[04:44] thousands of steps using industrial
[04:46] products currently on the market.
[04:49] The entire process could be achieved in
[04:52] a single container. She says installed
[04:55] within the premises of manufacturing and
[04:57] recycling companies. Radical break with
[05:00] current practices which remain slow,
[05:03] energyintensive and highly polluting.

Summary of Rare Earth Elements and Their Global Implications

The video discusses the critical role of rare earth elements in modern technology and the geopolitical tensions surrounding their supply. Rare earths, while not actually rare, are predominantly sourced from China, which controls approximately 90% of their mining and processing. This monopoly became evident in 2010 when China disrupted global supply, highlighting the reliance of countries like the United States on these essential materials.

The origins of the rare earth industry trace back to the Mountain Pass mine in California, where significant deposits were discovered in the 1960s. Initially viewed as geological curiosities, elements such as europium and neodymium became vital for various applications, including electronics, energy-efficient appliances, and hybrid vehicles. For instance, a Prius contains around 25 pounds of rare earths, underscoring their ubiquity in everyday life.

Despite their name, rare earths are found in many places but are only economically viable in a few regions due to the low concentrations required for mining. The extraction process is environmentally hazardous, leading to regulatory challenges and the temporary closure of the Mountain Pass mine in 1998. This gap allowed China to invest heavily in the rare earth industry, ultimately gaining a competitive edge through lower labor costs and fewer environmental regulations.

The U.S. has become increasingly aware of its dependence on Chinese rare earths, particularly for defense systems. The 2010 incident involving Japan served as a wake-up call, prompting the U.S. to formally address these supply chain vulnerabilities. Although efforts are underway to revive the domestic rare earth industry, such as the reopening of the Mountain Pass mine, challenges remain, including financial difficulties and a lack of substantial governmental support.

Rare earth elements are a group of 17 chemical elements that are critical in various high-tech applications. They are located in the periodic table at atomic numbers 57 through 71, encompassing elements such as lanthanum, cerium, neodymium, and europium. Despite being termed 'rare', these elements are not necessarily scarce in the earth's crust; rather, they are rarely found in concentrated forms that are economically viable for mining.

The unique characteristics of rare earth elements include their distinct chemical properties, which enable them to be used in a multitude of applications. For instance, europium enhances red color in television screens, while neodymium is crucial for the functioning of vibration motors in mobile phones. These elements possess various functionalities, including phosphorescence, magnetism, and optical amplification, making them indispensable in modern technology.

Furthermore, rare earth minerals refer to the naturally occurring forms of these elements found within ores, while processed metals are the refined forms obtained after extraction and separation processes. Mining rare earths involves complex techniques due to their low concentrations in ores, often requiring advanced separation technologies to isolate the individual elements effectively.

• [02:01] 'So, what are rare earth elements?'
• [03:38] 'What I'm getting from you is that modern life depends on these elements.'

Formation and Location of Rare Earth Elements

Rare earth elements are typically formed through geological processes that involve the crystallization of minerals under specific conditions over millions of years. This process often occurs in igneous rocks and is influenced by the presence of granite and other alkaline rocks. Rare earth minerals are often located in regions where these geological processes have taken place, such as the Mojave Desert in California, where significant deposits were identified.

Prospecting for rare earth elements can be challenging due to their low natural concentrations; however, the transcript does not specify any technical developments aimed at enhancing the efficiency of prospecting and mining operations. It does highlight that the Mountain Pass mine in California is one of the largest mines globally, indicating that certain locations have been identified as having economically viable concentrations of these elements.

• [01:18] 'Rare earth chemistry is fascinating.'
• [02:01] 'So, what are rare earth elements?'

The process of mining, extraction, and refining rare earth elements is complex and involves several stages. Initially, rare earth minerals are extracted from the earth through conventional mining techniques, including open-pit mining, as seen at the Mountain Pass mine in California. Once the minerals are collected, they undergo a series of chemical processes to separate and purify the individual elements from the ore.

The extraction process typically requires the use of toxic acids and large amounts of water, making it environmentally hazardous. The transcript notes that the Mountain Pass mine was shut down in 1998 due to radioactive contamination, highlighting the significant challenges associated with the mining process. The complexity of this extraction process can act as a barrier for countries that may lack the necessary technology or regulatory frameworks to manage these environmental risks effectively.

Moreover, the transcript suggests that there are environmental constraints in the United States that are less stringent in countries like China, where lower labor costs and fewer environmental regulations have allowed for more aggressive mining operations. This disparity has enabled China to dominate the rare earth market.

• [04:19] 'In fact, the mine was shut down by the state of California in 1998 after radioactive water seeped into the surrounding Mojave Desert.'
• [05:02] 'Those lines crossed somewhere around 1986.'

The environmental costs and health effects related to rare earth mining are significant and concerning. The transcript mentions that the extraction process is not only technically complex but also poses serious environmental risks. The use of toxic acids in the extraction process can lead to contamination of local water sources and soil, as evidenced by the incident at the Mountain Pass mine, which was closed due to radioactive water contamination.

Moreover, the mining operations in China have led to severe pollution issues. It is noted that entire villages have been relocated due to the saturation of air, land, and water with chemical toxins resulting from mining activities. This not only affects the miners but also the surrounding communities who may suffer from exposure to harmful pollutants, leading to potential long-term health effects.

In summary, the environmental and health implications of rare earth mining are profound, with the potential for widespread ecological damage and health risks for individuals living near mining sites.

• [04:22] 'In fact, the mine was shut down by the state of California in 1998 after radioactive water seeped into the surrounding Mojave Desert.'
• [06:38] '...where the air, land, and water are so saturated with chemical toxins.'

China's position in the rare earth market is characterized by a near-total monopoly, controlling roughly 90% of the global supply chain, including mining, refining, and processing. This dominance was solidified in the 1980s when U.S. production declined while Chinese production ramped up. The transcript notes that the Chinese government made a deliberate decision to dominate this sector, with Dang Xiaoping famously stating, 'The Middle East has oil. China has rare earths.' This declaration signaled China's intent to leverage its rare earth resources strategically.

Additionally, the transcript indicates that China's lower labor costs and lax environmental regulations have allowed it to offer rare earth products at significantly lower prices than competitors, thereby pushing them out of the market. The impact of this monopoly is profound, as it extends to critical industries within the United States, including defense systems. The reliance on China for rare earth elements has raised national security concerns, with officials acknowledging that many U.S. weapon systems depend on these materials.

• [05:13] 'The Chinese also had orders from the top.'
• [09:30] 'Yes, China threatens our national security unchecked.'

The role of rare earth elements in international politics is significant, particularly concerning the United States' dependency on China for these critical resources. The transcript highlights a pivotal moment in 2010 when a territorial dispute between China and Japan led to China halting rare earth shipments to Japan for 30 to 40 days. This incident served as a wake-up call for the U.S. government regarding the strategic implications of relying on a single country for such vital materials.

In response to these concerns, President Obama announced a formal complaint to the World Trade Organization against China for creating shortages for foreign buyers. This move signified an acknowledgment of the strategic importance of rare earth elements and the need for the U.S. to reduce its dependency on China.

The Trump administration's strategy to address this dependency involved efforts to stockpile rare earths and promote the development of domestic sources of these materials. However, the transcript indicates that significant government support, such as tax breaks or subsidies, is still lacking, making it challenging for the U.S. to restore its rare earth industry effectively.

• [10:14] 'Finally, 20 years after Dang Xiaoping's speech, rare earths were on the US radar screen.'
• [10:26] '...against China for creating shortages for foreign buyers.'

The transcript does not provide specific information regarding the countries where reserves of rare earth elements are located, nor does it mention any 'new players' entering the market. It primarily focuses on China's dominant position in the rare earth industry and the historical context of how the U.S. lost its competitive edge in this sector.

While the Mountain Pass mine in California is identified as one of the largest sources of rare earths, the transcript lacks details on other countries or companies that may be emerging in this industry. Thus, it is unclear what current progress or strategic importance these potential new players may hold in the global market.

The transcript identifies several specific rare earth elements that are critical for modern technology and strategic industries. Elements such as neodymium and europium are highlighted for their essential roles in various applications, including electronics and defense systems. While the transcript does not label any elements as 'critical' explicitly, it emphasizes the dependence of modern technology on rare earths.

As for the organizational structure of the global supply chains, the transcript illustrates that China has effectively established itself as the dominant supplier, creating vulnerabilities for other countries, particularly the U.S. This dependency on Chinese rare earth supplies poses risks for critical industries, including defense.

• [09:22] '...that would not have a rare earth component in.'
• [09:34] 'Yes, China threatens our national security unchecked.'

The transcript does not mention any specific alternative technologies or innovations that reduce or eliminate the need for rare earth elements. It primarily focuses on the current state of the rare earth market, the implications of dependency on China, and the extraction processes involved.

Thus, there is no detailed educational overview of substitutes or alternative technologies provided in the transcript.

The transcript does not provide detailed information regarding the recycling of rare earth elements. It primarily addresses the mining, extraction, and refining processes, along with the implications of dependency on rare earths sourced from China. As a result, there is no discussion on the economic and technical criteria that a country or company must consider before initiating mining operations.

[00:02] 60 Minutes rewind.
[00:06] Unusual metals that are sprinkled inside
[00:08] almost every piece of high tech you can
[00:11] think of. Most people have never heard
[00:13] of them, but we have become so reliant
[00:16] on rare earths that a few years ago an
[00:18] intense global power struggle broke out
[00:21] over their free flow. The reason is that
[00:24] one country has a virtual monopoly.
[00:27] roughly 90% of the mining, refining, and
[00:30] processing of rare earths, China. And in
[00:34] 2010, it used that power to disrupt the
[00:36] world supply. It's especially troubling
[00:40] because it was the United States that
[00:42] started the rare earth revolution in the
[00:44] first place.
[00:47] It all began here at this mine in
[00:50] Mountain Pass, California, an hour west
[00:52] of Las Vegas, when geologists first
[00:55] identified rare earth elements deep in
[00:57] the Mojave Desert. They were considered
[01:00] geological oddities until the 60s when
[01:04] it was discovered that one of these
[01:05] elements, europium, enhanced the color
[01:08] red in TV sets. And soon the rare earth
[01:12] industry was born. CBS presents this
[01:15] program in color.
[01:18] Rare earth chemistry is fascinating.
[01:20] There's so many more things that we
[01:22] could be doing with rare earths.
[01:24] Constantine Kerionopoulos, chairman of
[01:26] Molly Cororp, which has owned and
[01:28] operated the Mountain Pass mine for six
[01:30] decades, took us to the heart of the
[01:33] operation. Is this considered a big
[01:36] mine?
[01:36] In terms of rare earth standards, yes,
[01:39] it's a it's one of the biggest in the
[01:41] world. Are we actually walking on rare
[01:43] earth elements right now?
[01:45] We're physically on the or body.
[01:48] We are right on it.
[01:49] It starts at the top of the mine and
[01:51] comes down and we're walking on it and
[01:54] it goes in that direction.
[01:58] So, what are rare earth elements? If you
[02:01] ever took high school chemistry, you
[02:02] learned that they're clumped together at
[02:04] the end of the periodic table, atomic
[02:07] numbers 57 through 71, and they have
[02:10] difficult to pronounce Greek or
[02:13] Scandinavian names.
[02:14] Lanthanum, serium, neodymium, praodmium,
[02:17] samarium, turbium.
[02:19] Some of them are phosphorescent. Herbium
[02:22] amplifies light and is used in fiber
[02:25] optic cables. Gatalinium has magnetic
[02:28] properties and is used in MRI machines
[02:31] and X-rays. As for neodymium, you may be
[02:35] carrying some of it in your pocket.
[02:37] Next time your phone vibrates, think of
[02:39] us because the vibration motor is a
[02:42] small motor that contains a tiny
[02:44] neodymium magnet in it. Caronopoulos
[02:47] showed us around a new model home to
[02:50] illustrate that rare earths are making
[02:52] our appliances energy efficient like
[02:55] state-of-the-art refrigerators,
[02:57] touchscreen thermostats,
[03:00] energy efficient light bulbs, the air
[03:02] conditioning systems. They're also in
[03:05] our cars in the form of catalytic
[03:07] converters, sensors, and hybrid car
[03:10] batteries. Hybrids in particular use a
[03:13] lot more because they contain electric
[03:15] motors that would not function without
[03:18] rare earths.
[03:19] A Prius has roughly 25 pounds of rare
[03:22] earths. And they're hidden in plain
[03:24] sight in our everyday lives, in our
[03:27] computers and gadgets. Even the lights
[03:30] and cameras we use to film this story
[03:32] are chock full of rare earths. What I'm
[03:35] getting from you is that modern life
[03:38] depends on these elements.
[03:40] Absolutely.
[03:42] Despite their name, rare earths are not
[03:45] rare. Small amounts can be found in your
[03:48] backyard.
[03:50] They're trapped in what looks like
[03:52] ordinary rock. But there are only a few
[03:55] places on Earth with concentrations high
[03:58] enough to mine.
[04:00] Rare earths normally are found in very,
[04:02] very low concentrations. This is
[04:04] probably running something in the 25%
[04:07] grade, which is remarkable.
[04:09] To anyone who has ever worked with rare
[04:12] earths, this is a thing of beauty.
[04:13] But getting the rare earths out of that
[04:16] rock is nasty business, requiring toxic
[04:19] acids and lots of water. In fact, the
[04:22] mine was shut down by the state of
[04:24] California in 1998 after radioactive
[04:27] water seeped into the surrounding Mojave
[04:30] Desert from an underground pipe. The
[04:33] mine lay dormant for a decade, giving
[04:35] China an opportunity.
[04:37] The Chinese made a very conscious
[04:39] decision to enter that industry.
[04:42] Dan McGrerty was special assistant to
[04:44] President George HW Bush and today
[04:47] advises the US government on critical
[04:50] materials. When the Molly mine closed,
[04:53] he says China was already well on its
[04:56] way to becoming the king of rare earths.
[04:59] There's a point at which the lines
[05:00] cross. the United States production
[05:02] declines, the Chinese production is
[05:03] ramping up. Those lines crossed
[05:05] somewhere around 1986.
[05:06] So, how did they pull it off? What what
[05:08] were the factors that allowed them to
[05:11] basically take this away from us?
[05:13] Well, uh the advantage of lower labor
[05:14] costs would be a place to start. Also,
[05:17] environmentally, very almost no
[05:20] environmental constraints around mining,
[05:23] safety considerations for the miners
[05:24] doing the mining in huge contrast to
[05:26] United States. So, that translates
[05:28] directly into lower pricing. Yeah.
[05:30] And lower pricing can push other people
[05:31] out of the market.
[05:32] And that's basically what happened.
[05:34] It's basically what happened.
[05:35] The Chinese also had orders from the
[05:38] top. In a little notice speech in 1992,
[05:41] Dang Xiaoping signal China's intention
[05:44] to corner the market.
[05:45] What exactly did he say?
[05:47] Yeah. The Middle East has oil. China has
[05:50] rare earths.
[05:51] He actually said that. Yeah. I think
[05:53] it's fair to say at that point people in
[05:55] the rest of the world would have been
[05:56] saying, "What are what is he talking
[05:58] about?" just went right over our heads.
[05:59] I think so.
[06:00] Did we just not foresee what they
[06:03] foresaw?
[06:04] It's extraordinary if they actually
[06:05] foresaw all the uses. Our designers and
[06:08] developers advanced the miniaturized
[06:13] applications for laptops and cell phones
[06:15] while the Chinese were going after the
[06:17] metals and materials out of which these
[06:18] things are actually built.
[06:19] How did they get the knowhow?
[06:21] An enormous amount of investment. Like
[06:23] it's kind of like the Chinese moonshot,
[06:25] the moon program. China poured billions
[06:27] into the industry, ignoring the
[06:30] consequences. We obtained this video
[06:32] from a freelance cameraman showing the
[06:35] area near Baoto, China's rare earth
[06:38] capital, where the air, land, and water
[06:41] are so saturated with chemical toxins.
[06:44] The Chinese have had to relocate entire
[06:46] villages. This is one of the few places
[06:49] where rare earths are turned into
[06:51] metals, which are then alloyed or
[06:53] blended into things like permanent
[06:56] magnets.
[06:57] These are magnets that once you
[06:58] magnetize them, they stay that way.
[07:00] Ed Richardson, president of the US
[07:03] Magnetic Materials Association, says the
[07:06] most important use of rare earths is in
[07:08] magnets. Only a small amount can produce
[07:11] magnets able to lift a thousand times
[07:14] their weight.
[07:15] This is a cell phone. He showed us how
[07:17] miniaturized rare earth magnets can be.
[07:19] So, I'm going to take it apart layer by
[07:21] layer, and we're going to get to the
[07:23] point where we can actually see the
[07:25] magnets, the rare earth magnets that are
[07:26] inside them.
[07:27] Oh, let me see this.
[07:28] Magnetic. There's three little magnets
[07:31] in there.
[07:32] Oh, one, two, three.
[07:35] Right. And if you put the paper clip on
[07:36] there, you can see how it sticks.
[07:38] And this little tiny thing is the is the
[07:40] speaker.
[07:41] Right. This is how devices have gotten
[07:43] small, very powerful because you don't
[07:46] because the magnets are so powerful, you
[07:47] don't have to use much of it.
[07:49] The US developed this technology, but
[07:52] China bought most of it right out from
[07:55] under us. For instance, in 1995, China
[07:58] bought the biggest American rare earth
[08:00] magnet company, Magnaquench, which was
[08:03] based in Indiana. When they bought the
[08:06] factory, they now had the patents, they
[08:08] now had the equipment, and they actually
[08:10] had some of the Magna Quench employees
[08:12] in the United States go to China and
[08:14] teach the people how to make the
[08:16] products.
[08:17] Did we not understand the strategic
[08:19] importance of keeping that industry
[08:22] here?
[08:22] We didn't get it. And unfortunately, the
[08:24] technology was transferred to China
[08:26] before that technology was appreciated.
[08:29] And now we're seeing so many for
[08:31] instance defense systems that are
[08:34] dependent on it.
[08:35] Does that make us dependent on China for
[08:38] our defense systems?
[08:39] Oh, we are very dependent on China.
[08:40] We are dependent on China for our
[08:43] weaponry.
[08:44] Right.
[08:47] A prime example of that is the new F-35
[08:51] fighter jet. The most technologically
[08:53] advanced weapon system in history.
[08:57] Each one contains nearly half a ton of
[09:00] rare earths. Former White House official
[09:03] Dan McGory says that's just for
[09:05] starters.
[09:06] The guidance systems on weapon systems
[09:08] and Tomahawk cruise missile, any of the
[09:10] smart bombs have rare earths in them. um
[09:14] lasers. I I'd be hardressed to name
[09:18] anything that we consider worth building
[09:20] today
[09:21] today and going forward that would not
[09:22] have a rare earth component in
[09:24] because of this because of the monopoly
[09:26] on rare earths. Does China threaten our
[09:29] national security
[09:30] unchecked? Yes.
[09:34] What finally woke up the US government
[09:36] was an incident at sea in 2010. A
[09:40] Chinese fishing twler rammed a Japanese
[09:43] Coast Guard ship in a territorial
[09:45] dispute.
[09:46] [Applause]
[09:51] The Japanese seized the boat's captain
[09:54] and two weeks later, China stopped
[09:56] shipping rare earths to Japan.
[09:58] The Chinese cut them off and for 30 to
[10:01] 40 days, the rare earth did not flow to
[10:03] Japan. So it was a real shot across the
[10:04] bow to the Japanese that this is
[10:08] something that you have to be worried
[10:09] with.
[10:10] It was a wakeup call. Finally, 20 years
[10:14] after Dang Xiaoing's speech, rare earths
[10:16] were on the US radar screen.
[10:19] This case involves something called rare
[10:21] earth materials.
[10:22] President Obama announced a formal
[10:24] complaint to the World Trade
[10:26] Organization against China for creating
[10:29] shortages for foreign buyers. And last
[10:31] August, the WTO ruled against Beijing.
[10:35] No one in the Obama administration would
[10:37] talk to us on camera about rare earths
[10:40] and our dependence on China, including
[10:42] the Department of Energy, the Pentagon,
[10:45] or the US Trade Representative. Even the
[10:48] private sector didn't want to discuss
[10:50] the problem. The story will continue
[10:53] after this.
[10:58] We tried to get interviews with heads of
[11:01] companies that use the magnets and other
[11:04] products coming out of China and they
[11:06] would not talk to us.
[11:07] Is there fear
[11:09] in in high-tech companies that if they
[11:12] say something negative, maybe China
[11:15] won't sell them what they need?
[11:17] I think that there is grave concern in
[11:20] these companies, but perhaps not a
[11:22] willingness to talk about that on the
[11:24] street corner.
[11:25] So what is the US doing to restore the
[11:28] industry here? Out in California, Molly
[11:32] Corp was allowed to reopen after it
[11:34] developed new technology that protects
[11:36] the environment. But even when it's at
[11:39] full capacity, the mine will only
[11:41] produce a fraction of the world's supply
[11:44] of rare earths.
[11:46] The Pentagon has begun stockpiling rare
[11:48] earths, and industry is researching new
[11:51] technologies that would replace them. Do
[11:54] you get any help from the US government?
[11:56] They want to have a rare earth industry
[11:58] here.
[11:59] Encouragement. Yeah,
[12:00] encouragement.
[12:02] That's it.
[12:03] Yeah.
[12:04] The government is not offering
[12:06] incentives like tax breaks or subsidies
[12:09] that would lure businesses into the
[12:11] market.
[12:12] What needs to to change to bring more of
[12:15] the industry back to the United States?
[12:17] Well, first of all, we need to take a
[12:18] long-term view. It took 20 years to lose
[12:22] the dominant position, at least 20
[12:24] years. And it's probably going to take
[12:26] us 10, 15 years if we execute for some
[12:30] of these supply chains to start coming
[12:32] back.
[12:34] But trouble is once again looming for
[12:36] the US rare earth industry. Since
[12:38] restarting operations two years ago,
[12:41] Molly Corps Mountain Pass mine has yet
[12:43] to turn a profit and is so deeply in
[12:46] debt that just last week its own auditor
[12:48] warned it may not be able to stay in
[12:51] business.

Overview of Rare Earth Elements

Rare Earth elements are critical for modern technology and clean energy solutions, found in devices such as LCD screens, smartphones, and electric vehicles. Their demand is expected to surge, particularly as the world strives for carbon neutrality, with predictions indicating a three-fold increase by 2040. Despite their name, these elements are not rare in abundance but are challenging to extract economically and environmentally.

Challenges in Supply and Environmental Impact

The mining of rare Earths poses significant environmental risks, including pollution from leaching pools that can contaminate air and groundwater. This has led to severe ecological damage, particularly in regions like Baotou, China, where waste disposal has created hazardous conditions for local communities. The geopolitical landscape is heavily influenced by China's dominance in rare Earth production, controlling a substantial share of global reserves and refining capabilities.

Geopolitical Dynamics

China's strategic control over rare Earths has resulted in geopolitical tensions, especially with countries like Japan and the United States, which have experienced supply disruptions. The U.S. relies heavily on China for its rare Earth imports, leading to initiatives aimed at boosting domestic production and diversifying supply chains.

Future Directions

Efforts to secure rare Earth supplies include enhancing recycling initiatives and developing alternative extraction methods. Companies like Apple and BMW are exploring ways to reduce reliance on rare Earths through innovative technologies. As global demand rises, the challenge remains to balance the need for these essential materials with environmental sustainability, ensuring that the pursuit of clean energy does not exacerbate ecological harm.

Conclusion

Addressing the complexities of rare Earth supply requires a multifaceted approach, combining environmental responsibility with strategic resource management. The ongoing discourse emphasizes the importance of adapting market rules to foster sustainable practices in the rare Earth industry.

Definition and Unique Characteristics of Rare Earth Elements

Rare Earth Elements (REEs) consist of a group of 17 metallic elements that are essential to various modern technologies. Despite being termed 'rare,' they are not scarce in terms of availability; rather, they are found in low concentrations across many regions worldwide. The term 'rare' is somewhat misleading as these elements can be located in various concentrations in nearly all countries, with certain areas like China having a higher prevalence.

These elements possess unique properties that make them invaluable in numerous applications. For example, they can exhibit high magnetic properties, which are crucial in the manufacturing of electric vehicle motors and wind turbines. The particular attributes of REEs, like their magnetic capabilities, enable advancements in clean energy technologies, which are increasingly vital in the global fight against climate change.

Furthermore, there is a distinction between rare earth minerals and processed metals. Rare earth minerals are the raw ores mined from the earth, while processed metals refer to the purified forms of these elements that are used in manufacturing. The process of refining these minerals into usable metals is complex and requires advanced techniques to extract and separate the individual elements from the mined ore.

• [02:49] "Rare Earths refer to the 17 metallic elements many of which you’ve probably never heard of... They have certain properties that make them extremely useful."
• [03:02] "Rare Earths are not rare; they are actually quite abundant... just because rare Earths can be found in a lot of places doesn’t mean they’re easily obtainable."

Formation and Location of Rare Earth Elements

The formation of Rare Earth Elements occurs through geological processes that often span millions of years. They are primarily found in igneous and metamorphic rocks, as well as in the minerals that form from these rocks. The distribution of REEs across the globe varies, with significant reserves located in countries such as China, Vietnam, Brazil, and Russia. While the elements can be found in various geological formations, their extraction poses significant challenges due to the complexities involved in mining and refining.

The transcript does not provide specific technical developments that improve the efficiency of prospecting or mining these elements. However, it implies that advancements in mining technologies and techniques are necessary to make the extraction process more viable, particularly as the demand for these elements is expected to increase sharply in the coming decades, driven by clean energy technologies.

• [01:26] "What are rare Earths? Well, rare Earths refer to the 17 metallic elements... they run your life."
• [02:12] "The International Energy Agency predicts that demand for rare Earths driven by clean energy technology will rise more than three-fold by 2040."

Mining, Extraction, and Refining Processes

The process of mining, extraction, and refining Rare Earth Elements is multifaceted and involves several technical complexities. Initially, mining involves extracting ores that contain REEs, which are then transported to processing facilities. The extraction process often leads to the generation of tailings, or waste materials, that can contain hazardous substances.

Once the ore is mined, it undergoes a refining process where chemicals are used to separate the REEs from other elements. This step is critical but also poses environmental challenges, as the chemicals utilized can be dangerous if not managed properly. The refined Rare Earth metals are then used in various applications, including electronics and clean energy technologies.

The transcript does highlight that the economics of mining REEs can be problematic. Specifically, the costs associated with refining and processing can be high, and the economic viability of extraction is often hampered by fluctuating market demands for various REEs. Additionally, the technical complexity of mining and processing can act as a barrier for countries lacking the necessary technology and resources.

• [04:20] "Once the ore containing the rare Earths has been dug up, it will often end up in a big leeching pool where chemicals are used to separate them out from all the other elements."
• [03:58] "The issue is not just the supply but also the pricing... there’s been a huge environmental price to pay because of rare earth mining."

Environmental Costs and Health Effects of Rare Earth Mining

The environmental costs associated with Rare Earth mining are significant and have dire implications for both the ecosystem and human health. Mining operations can lead to the contamination of air and water sources due to the release of hazardous chemicals during the refining process. The leaching pools used for separating REEs from ores can emit dangerous pollutants into the atmosphere and can also seep into groundwater, which may contain radioactive elements mixed with the rare Earths.

The effects on local communities can be severe. For instance, in China, waste products from refineries have resulted in the creation of toxic lakes, often referred to as 'Hell on Earth.' These toxic materials can render land infertile and make drinking water unsafe, leading to a host of health issues for residents and miners alike. The transcript emphasizes that while Rare Earths are crucial for modern technologies, the environmental and health impacts of their extraction cannot be overlooked.

• [04:58] "Environmentalists have made the point that in order to save the Earth, you’re in fact ending up destroying the Earth because of the pollution emitted..."
• [05:24] "Drinking water has become unsafe while we’re talking about China... a vast man-made lake full of dumped toxic materials has been likened to Hell on Earth."

China's Special Position in the Rare Earth Market

China holds a dominant position in the global Rare Earth market, controlling a significant share of the world's reserves as well as the processing capabilities. The transcript indicates that China not only has the largest deposits of Rare Earths but also leads in refining and processing them, which grants the country substantial strategic power in this sector. This dominance was established over decades, beginning with significant investments in heavy industry and the military industrial complex shortly after the establishment of the People's Republic of China in 1949.

The monopolistic nature of China's position allows it to leverage its control over Rare Earth supplies, which has been a point of contention in international relations. For example, in 2010, China was accused of deliberately withholding Rare Earth exports to Japan, which resulted in a dramatic spike in prices and served as a wake-up call for many countries reliant on these elements.

The transcript does not explicitly mention illegal mining activities, but it does imply that China's control has a profound impact on global supply chains and international politics, marking it as a crucial player in the ongoing geopolitical struggle over these essential materials.

• [05:34] "China controls by far the biggest share of the world’s Rare Earth reserves... gives China enormous strategic power."
• [06:33] "Rare Earths have become a source of geopolitical contention because of how key they are to different countries’ technological ambitions."

Rare Earth Elements in International Politics: The US Strategy

The role of Rare Earth Elements in international politics is underscored by their strategic importance to technological and environmental ambitions of nations. The transcript highlights the U.S. strategy under the Trump administration aimed at reducing dependency on China for Rare Earth supplies. This concern was particularly pronounced due to the fact that the U.S. imports almost 80% of its Rare Earths directly from China, making its economy vulnerable to supply disruptions.

In response to these challenges, President Trump signed an executive order to boost funding for domestic mining operations. This strategic move was aimed at fostering a self-sufficient supply chain for Rare Earths within the U.S., thereby mitigating the risks associated with foreign reliance. The urgency of this initiative reflects the broader geopolitical dynamics where supply chain security has become a pivotal aspect of national security discussions.

• [10:11] "The U.S. imports almost 80% of its rare Earths directly from China and it’s heavily reliant on China for the processing of the rare Earths mined in America."
• [10:30] "Efforts on the part of say Europe to expand its network of suppliers is running into complications."

Countries with Rare Earth Reserves and New Players in the Market

Rare Earth Elements are found in various countries, with significant reserves located in China, Vietnam, Brazil, and Russia. The transcript indicates that while China dominates the market, there are emerging players that are starting to explore their own Rare Earth resources. For instance, Japan has looked to Mongolia and Vietnam for potential Rare Earth sources after experiencing supply disruptions from China in 2010.

The strategic importance of these new players is heightened by the geopolitical implications of Rare Earth supply chains. As countries like Vietnam seek to develop their mining capabilities, the competition for securing these resources may lead to a diversification of the supply chain, which is critical in reducing reliance on a single country.

• [05:31] "China controls by far the biggest share of the world’s Rare Earth reserves... there’s also a high concentration of them in Vietnam, Brazil, and Russia."
• [09:45] "Japanese businessmen... were turning up in places like Mongolia and Vietnam both of which have rare Earths to explore the possibilities."

Critical Rare Earth Elements and Global Supply Chain Vulnerabilities

The transcript identifies certain Rare Earth Elements as 'critical' due to their essential roles in advanced technologies and clean energy applications. Elements such as neodymium and dysprosium are mentioned specifically, as they are crucial for manufacturing high-performance magnets used in electric vehicles and wind turbines.

The organizational structure of the global supply chains for these critical elements is complex and fraught with vulnerabilities. The dependence on a few countries, particularly China, for both mining and refining creates a precarious situation where geopolitical tensions could disrupt supply. Additionally, the interconnectedness of global markets means that shifts in one region can have ripple effects worldwide.

• [01:29] "Rare Earths refer to the 17 metallic elements... that are essential to various modern technologies."
• [12:20] "China’s dominance in the rare earth and critical material sector has to do with producing the technological components that contain rare earth elements."

Alternative Technologies and Innovations for Rare Earth Substitutes

While the transcript does not delve into specific alternative technologies in detail, it does mention ongoing research aimed at reducing or eliminating the need for Rare Earth Elements. One area of focus is the use of bacteria for separating elements instead of relying on traditional chemical processes, which are often environmentally harmful.

Furthermore, the potential for extracting Rare Earths from tailings left after discontinued mining operations is highlighted as a promising avenue for reducing demand. This approach not only makes use of existing waste materials but also diminishes the need for new mining ventures. The transcript emphasizes the critical nature of developing these alternatives as a means to address the growing demand for Rare Earths without further environmental degradation.

• [15:38] "Scientists are also looking into ways to separate elements using bacteria instead of chemicals."
• [16:26] "Apple says its latest offering, the iPhone 13, has 98% recycled Rare Earth elements."

Recycling of Rare Earth Elements

The recycling of Rare Earth Elements is becoming an increasingly important topic, especially in light of the environmental concerns associated with mining. The transcript indicates that there has been progress in the science of recycling these elements, although the current recycling rates remain low. Companies are beginning to recognize the economic and environmental benefits of reclaiming Rare Earths from discarded products.

Before initiating mining operations, certain economic and technical criteria must be considered. These include the cost-effectiveness of mining versus recycling, the availability of technologies for efficient extraction, and the environmental regulations that govern these processes. The transcript suggests that companies and countries should weigh these factors carefully to determine the best approach to securing a sustainable supply of Rare Earths.

• [15:29] "There are ways to stem demand by benefiting from what’s already there... without necessarily having to rush around opening as many new mines as possible."
• [16:10] "There has been progress in the science to help make this efficient although that isn’t likely to help stem demand in a really significant way just yet."

[00:00] you might not know it but rare Earths
[00:03] they run your life we need them for LCD
[00:06] screens lasers headphones microphones
[00:08] smartphones they're also found in space
[00:11] rockets and satellites and even in some
[00:13] Modern Cancer drugs and their use in
[00:16] wind turbines and electric cars means
[00:19] they've become a key part of developing
[00:21] clean energy technology and therefore of
[00:24] the fight against climate change we use
[00:27] them a lot and we're only going to need
[00:29] more there's reason to worry about how
[00:31] we're getting them if we don't take
[00:34] right steps right now of course there
[00:37] will be uh problems that we will not be
[00:40] able to meet the the the required demand
[00:43] in future restricting export of rare
[00:46] earth would be a good way of inflicting
[00:50] pain on your geopolitical Rivals even if
[00:55] a mining company uh want to do things in
[00:59] the greenest greatest most
[01:00] environmentally friendly way possible
[01:03] the market incentives aren't there in
[01:06] this video we'll talk about the rare
[01:08] Earths we need who controls them and why
[01:11] and how securing Supply is a social
[01:13] environmental and geopolitical problem
[01:16] the world has to resolve that's all
[01:19] coming up on business
[01:22] Beyond first up the science bit what are
[01:26] rare Earths well rare Earths refer to
[01:29] the 17 metallic elements many of which
[01:32] you've probably never heard of some have
[01:35] futuristic sounding names like neodymium
[01:38] or promethium others are barely
[01:40] pronounceable like prmium or erbium and
[01:44] they have certain properties that make
[01:45] them extremely useful for example they
[01:48] can be highly magnetic this comes in
[01:51] handy when turning movement into energy
[01:54] rare earth magnets help make electric
[01:56] vehicle Motors and wind turbines lighter
[01:58] and more efficient
[02:00] as economies around the world strive to
[02:02] become more carbon neutral the
[02:05] International Energy agency predicts
[02:07] that demand for rare Earths driven by
[02:09] Clean Energy technology will rise more
[02:12] than three-fold by 2040 in what they
[02:15] call the stated policy scenario and
[02:17] Sevenfold in the sustainable development
[02:19] scenario that's where all net zero
[02:22] emissions pledges are reached in a
[02:24] statement the agency's executive
[02:26] director Fati bur said today the data
[02:30] shows a looming mismatch between the
[02:32] world's strengthened climate Ambitions
[02:34] and the availability of critical
[02:36] minerals that are essential to realizing
[02:39] those Ambitions now rare Earths are just
[02:42] one kind of critical mineral you might
[02:44] have heard of others like lithium and
[02:47] nickel but having established that we
[02:49] need them and that we should be
[02:51] concerned we might not have enough
[02:53] here's one slightly confusing thing that
[02:56] any expert will tell you they are not
[03:00] actually rare they actually quite
[03:02] abundant you can find these elements in
[03:04] various concentration in almost all
[03:06] countries of the world so again rare
[03:09] Earth's not rare but everywhere also
[03:12] according to this map from the US
[03:14] Geological
[03:15] Survey but just because rare Earths can
[03:18] be found in a lot of places doesn't mean
[03:20] they're easily obtainable the economics
[03:23] of mining them is not exactly
[03:25] straightforward when you produce rare
[03:27] Earths you often produce use together um
[03:31] substances that are in higher demand and
[03:34] substances that are in lower demand
[03:36] simply because they are
[03:38] collocated and what this can do is that
[03:42] as substances which are in very high
[03:45] demand will lead to increase in the
[03:49] supply of those that are less demanded
[03:52] the price of those less demanded Rare
[03:55] Earth will go down and that's going to
[03:58] increase the cost and lower the profits
[04:02] for the producers so they will have to
[04:04] increase the price of the highly
[04:06] demanded substances so the issue is not
[04:10] just the supply but also the pricing and
[04:13] it's not just about the financial cost
[04:15] there's been a huge environmental price
[04:17] to pay because of rare earth mining once
[04:20] the ore containing the rare Earths has
[04:22] been dug up it will often end up in a
[04:25] big leeching pool where chemicals are
[04:27] used to separate them out from all the
[04:29] other elements but these pools can
[04:32] release dangerous chemicals into the air
[04:35] and if they're badly sealed chemicals
[04:37] can also seep into the ground getting
[04:39] into the groundwater that includes the
[04:41] radioactive elements that were mixed in
[04:44] with the rare
[04:45] Earths environmentalists have made the
[04:49] point that in order to save the Earth
[04:52] you're in fact ending up destroying the
[04:54] Earth because of the pollution emitted
[04:58] in getting these Rare Earth and scarce
[05:00] Metals there's also the dumping of the
[05:03] waste products from the refineries in
[05:05] the Chinese city of BTO a vast man-made
[05:09] lake full of dumped toxic materials has
[05:11] been likened to Hell on Earth this can
[05:14] have enormous and terrible KnockOn
[05:16] effects for communities around these
[05:18] sites land can no longer be farmed and
[05:21] drinking water has become unsafe while
[05:24] we're talking about China it's important
[05:26] to know how they're Central to the story
[05:28] of rare earth and anxiety over Supply
[05:32] China controls by far the biggest share
[05:34] of the world's Rare Earth reserves but
[05:37] there's also a high concentration of
[05:39] them in Vietnam Brazil and Russia also
[05:42] control a substantial
[05:44] amount however when it comes to actually
[05:47] refining and processing China is even
[05:50] further
[05:51] ahead controlling most of the global
[05:53] trade in rare Earths gives China
[05:56] enormous strategic power and that's
[05:58] something Beijing is fully aware of
[06:01] three decades ago China's then leader D
[06:05] shaing was quoted saying the Middle East
[06:08] has its oil China has rare Earths this
[06:11] was stated in the context of a larger
[06:14] discussion about the vulnerability of
[06:17] the Middle East to uh intervention from
[06:21] other Western Powers because of its oil
[06:24] resources and that China needed to then
[06:27] Be watchful and prudent to make sure
[06:29] that the same didn't happen with respect
[06:31] to its Rare Earth reserves suffice to
[06:33] say rare Earths have become a source of
[06:36] geopolitical contention because of how
[06:39] key they are to different countries
[06:40] technological Ambitions and now also to
[06:43] their climate protection objectives but
[06:45] let's take a step back how did China
[06:48] come to dominate the rare Earth's trade
[06:50] let me take you back to
[06:53] 1949 one of the very first industrial
[06:56] projects that was prioritized by uh the
[07:00] newly founded People's Republic of China
[07:02] uh was actually building a vertically
[07:04] integrated uh heavy industry and
[07:07] military industrial complex around the
[07:09] iron and rare earth reserves in Bay an
[07:11] oo and so with a lot of investment from
[07:14] the former Soviet Union a lot of work um
[07:17] over a couple of decades uh China built
[07:19] up a really robust uh industrial
[07:22] foundation and also uh sent experts all
[07:25] over the world to Europe to Russia to
[07:27] other parts of the world to uh gather
[07:30] expertise and then to come back uh to
[07:33] China and help uh crack the puzzle of
[07:38] how you better refine and uh produce
[07:41] Alloys with Rare Earth elements this was
[07:42] in now we're in sort of like the 70s and
[07:45] then uh D shaing comes along uh and does
[07:48] the open up and reform and starts
[07:50] selectively requesting and attracting
[07:53] foreign direct investment in specific
[07:55] sectors in China and this happened to be
[07:57] right around the time uh when when uh
[08:00] Ronald Reagan and Margaret Thatcher in
[08:02] the west removed Capital controls to
[08:04] make it easier for uh Western firms to
[08:08] look for places that had the greatest
[08:10] competitive Advantage uh the lowest
[08:12] labor costs um and of course the uh
[08:16] least amount of regulatory burden us
[08:19] producers went bankrupt because they
[08:21] couldn't survive uh with the prices the
[08:24] Chinese could uh offer at the same time
[08:27] the en Environmental regul is not as
[08:31] tough as in uh developed countries over
[08:35] time the market share of Chinese
[08:37] producers uh Rose and nobody actually
[08:41] noticed about that for a long time
[08:44] because it's it was just too convenient
[08:46] to get uh the materials without uh the
[08:49] environmental problems at home and at
[08:52] low prices and that's how China built up
[08:55] Mastery of the sector over time and how
[08:57] that Lake we showed you in BAU got to be
[09:00] that way but some of China's trading
[09:02] partners would learn the hard way that
[09:05] dependency from one side translates to
[09:07] leverage for the
[09:09] other back in 2010 technological
[09:13] Powerhouse Japan accused its gigantic
[09:15] Regional rival of deliberately
[09:17] withholding Rare Earth exports the
[09:20] subsequent r with China saw the prices
[09:22] of some rare Earths increase 30 fold
[09:25] obviously it was a wakeup call to Japan
[09:28] and I watched Japan politics very
[09:30] closely and I noticed that within weeks
[09:33] of the Chinese threatening that embargo
[09:36] Japanese businessmen you know people who
[09:39] work for the big firms like Mitsubishi
[09:42] and mitsui they were turning up in
[09:45] places like Mongolia and Vietnam both of
[09:48] which have rare Earths to explore the
[09:52] possibilities so the rest of the world
[09:55] should have been alert for a longer time
[09:58] more recently in 2020 concern that China
[10:01] would use rare Earths as a bargaining
[10:04] chip in its ongoing trade battle with
[10:06] the United States saw then president
[10:09] Donald Trump sign an executive order
[10:11] boosting funding for domestic mining the
[10:14] US Imports almost 80% of its rare Earths
[10:18] directly from China and it's heavily
[10:20] reliant on China for the processing of
[10:22] the rare Earths mind in America and its
[10:25] one and only Rare Earth mine mountain
[10:27] pass in California and efforts on the
[10:30] part of say Europe to expand its network
[10:33] of suppliers is running into
[10:36] complications to to reduce dependence on
[10:38] China uh Europe went uh to um to Russia
[10:43] but uh the only uh Rare Earth processing
[10:46] facility in Europe is in Estonia and it
[10:49] is almost completely fed by feed stock
[10:52] from Russia so this is now something
[10:54] which maybe there's a reversal so we we
[10:57] now turn to China again to Source uh the
[11:01] material that we got from Russia in the
[11:05] past couple of years um and if China is
[11:09] would now uh
[11:12] um turn to an aggressive uh stance with
[11:17] respect to supply to the world markets
[11:20] that would be actually big problem at
[11:22] the moment an aggressive stance and
[11:25] disrupted Supply means higher prices and
[11:28] therefore inflated costs all the way
[11:30] down the chain and more expensive
[11:32] products in your hands that would also
[11:34] slow down the uptake of Green Technology
[11:37] but experts warn that the global economy
[11:40] being as interlined as it is means that
[11:43] the race for rare Earths defies
[11:45] characterization as a simple win or take
[11:48] all story for the first time since 1985
[11:52] in 2018 China imported more rare Earths
[11:55] than it exported and this is consistent
[11:58] with the policy strategy of uh the PRC
[12:02] government which was to move out of
[12:04] primary resource extraction and to move
[12:06] into value added
[12:08] processing so now China's dominance in
[12:12] the rare earth and critical material
[12:13] sector has to do with producing actually
[12:16] the technological components that
[12:18] contain Rare Earth elements and other
[12:20] critical materials these technological
[12:23] components are then uh exported all over
[12:25] the world a lot of them are also you
[12:27] know consumed within China uh but then
[12:29] the part that I think is often left out
[12:31] of the picture is that China is an
[12:33] important destination market for
[12:35] finished goods from the West that
[12:38] contain these Rare Earth bearing
[12:40] technological components and so our
[12:43] economies our global economy is quite a
[12:46] bit more integrated than this West
[12:49] versus China or US versus China
[12:51] narrative would represent the rare earth
[12:54] industry Association says environmental
[12:57] regulations becoming stricter in China
[12:59] means their production costs are going
[13:02] up too China should then have a harder
[13:05] time undercutting Rare Earth producing
[13:07] Rivals potentially loosening their hold
[13:09] on the trade some of the latest
[13:12] regulations put forward in China uh or
[13:16] the environmental standards or or
[13:18] regulations that actually you can
[13:20] compare with that with European
[13:23] standards so if if that standards are in
[13:26] place China can No More Produce produce
[13:29] and provide a material for that price
[13:32] that you used to get so that price
[13:35] increase actually allow other companies
[13:37] to compete with China naturally this
[13:40] might be a good moment for a recap one
[13:42] rare Earths like the odium and
[13:43] dysprosium while in themselves not all
[13:46] that rare are in tight Supply two mining
[13:48] them is socially environmentally and
[13:50] economically fraud three the supply is
[13:52] still not terribly Diversified China
[13:54] still dominates in terms of controlling
[13:56] large Rare Earth reserves and refining
[13:58] capacity
[13:59] even though the gap between itself and
[14:01] other countries in that regard might be
[14:03] narrowing so here's the question what
[14:05] can be done to secure the rare Earths
[14:07] that countries need diversifying Supply
[14:11] and ensuring better Behavior among all
[14:13] actors in The Rare Earth space would be
[14:15] a start but that's obviously not easy a
[14:19] lot has to come together to achieve that
[14:21] the highest social environmental health
[14:24] and safety standards combined with a
[14:26] will to punish Rare Earth players for
[14:28] not meeting them or to incentivize them
[14:31] so that they do so for example if um if
[14:35] a downstream company if a refiner if uh
[14:39] a technological components
[14:40] manufacturer uh elected to pay the
[14:43] premium to um to purchase
[14:48] environmentally and socially
[14:50] responsible Rare Earth elements then
[14:53] maybe they should be reimbursed right um
[14:56] and this reimbursement can happen can
[14:58] take a number of forms forms of uh
[15:00] already very familiar policy instruments
[15:02] such as tax rebates tax incentives that
[15:06] sort of thing uh and so there's nothing
[15:10] really profoundly revolutionary or even
[15:14] very novel or original uh that needs to
[15:17] be applied here in order to uh create a
[15:20] market that Fosters this kind of Greener
[15:23] and greater Rare Earth production and
[15:25] then there are ways to stem Demand by
[15:27] benefiting from what's already there
[15:29] without necessarily having to rush
[15:30] around opening as many new mines as
[15:32] possible there's a lot of research going
[15:35] into extracting rare Earths from Kash or
[15:38] from tailings left after discontinued
[15:40] mining operations scientists are also
[15:43] looking into ways to separate elements
[15:45] using bacteria instead of chemicals then
[15:48] there are also programs aimed at reusing
[15:50] the rare earth that consumers like us
[15:52] just end up throwing away so recycling
[15:55] is a big issue in these elements which
[15:59] um to a large extent are um uh uh
[16:04] disposed without uh recycling at the
[16:07] moment and here there has been progress
[16:10] in the um science to um help help uh
[16:14] make this efficient although that isn't
[16:17] likely to help stem demand in a really
[16:19] significant way just yet it's a step
[16:22] that more Tech manufacturers are
[16:24] increasingly taking Apple says its
[16:26] latest offering the iPhone 13 has 98%
[16:30] recycled Rare Earth elements other
[16:33] companies are trying to reduce their
[16:35] dependence on rare Earth's full stop
[16:37] German car maker BMW says it's reined
[16:41] its electric vehicle technology around a
[16:43] lack of rare Earths and more solutions
[16:46] towards either securing Rare Earth
[16:48] Supply or developing Alternatives could
[16:51] yet still come some of these new
[16:54] technologies are very
[16:56] promising and there could be some
[16:59] technology being worked on we don't even
[17:01] know about yet technology May rescue us
[17:05] until then however the debate around
[17:07] Rare Earth Supply continues the most
[17:10] important part of which remains how to
[17:12] get what we need to save the planet
[17:14] without wrecking it any further it's
[17:17] neither easy nor impossible but it is
[17:19] imperative because um climate change is
[17:22] the greatest challenge of our times
[17:26] anything that would make it more
[17:29] difficult is very unwelcome and it's
[17:33] quite actually good that we are having
[17:35] this conversation thinking about ways of
[17:39] mitigating possible future shortages how
[17:42] do we then
[17:44] adjust uh the rules of our market
[17:48] economy to make it so that um the bottom
[17:51] line isn't just a race to the bottom I
[17:54] think whatever we do it will be
[17:56] inadequate
[17:59] and I think that's fine I think it's
[18:01] better to go part of the way to go as
[18:03] far as we can than to continue business
[18:06] as usual and that's all for this edition
[18:09] of business Beyond if you like this
[18:12] video why not watch some of our other
[18:14] stuff I'd recommend our Deep dive into
[18:16] the global weapons trade or the battle
[18:18] to capture the new space economy thanks
[18:21] for watching see you again soon

Overview of Rare Earth Elements

Rare earth elements (REEs) are a group of 17 metals that are essential for the production of various modern electronic goods, including electric vehicles, wind turbines, lasers, and screens. Notably, neodymium is used for magnets, gadolinium for MRI contrast agents, and europium for displays. Despite their designation as "rare," these elements are not scarce, with over 15 countries possessing significant reserves. China dominates the market, supplying approximately 70% of the ore and over 90% of refined materials, with the U.S. relying heavily on Chinese imports.

Market Dynamics and Challenges

The rare earth industry gained momentum after significant discoveries in California in the late 1940s. By the early 2000s, China had emerged as the primary producer, largely due to its extensive mining operations and lower environmental regulations. However, recent geopolitical tensions, including U.S. tariffs and Chinese export controls, have raised concerns about supply disruptions, prompting discussions on alternative sourcing and recycling strategies.

Future Directions

• Investment in Domestic Production: The U.S. Department of Defense has become a major shareholder in MP Materials, the nation’s sole rare earth producer, while Australia and Brazil are exploring collaborative mining projects.
• Recycling Initiatives: Companies like Apple are investing in recycling technologies to reclaim rare earths from existing products, although this process will take time due to the current lifecycle of electric vehicles.
• Research into Alternatives: Innovations such as heavy rare-earth-free magnets and synthetic materials like tetrataenite are being explored as substitutes for traditional rare earth applications.

Overall, consistent investment and strategic planning are crucial for mitigating reliance on Chinese supplies and ensuring a stable supply chain for rare earth elements in the future.

Rare earth elements (REEs) are a group of 17 metals that are essential components in a variety of modern electronic devices, such as smartphones, electric vehicles, and wind turbines. These elements include neodymium, which is used to produce powerful magnets; gadolinium, which serves as a contrast agent in medical imaging; and europium, which is critical for the coloration in displays.

Despite their designation as "rare", these elements are not particularly scarce in terms of natural abundance; rather, they are called rare earths because they are often dispersed and not found in concentrated deposits. The term "rare" refers more to the difficulties associated with their extraction and processing rather than their actual availability. More than 15 countries possess reserves of these elements, with notable contributors being Brazil and Australia. China, however, dominates the market, supplying nearly 70% of the ore from which these metals are extracted and over 90% of the refined materials used worldwide.

The distinction between rare earth minerals and processed metals is crucial for understanding the supply chain. Rare earth minerals are the raw materials mined from the earth, which then undergo extensive processing to separate and purify the individual metals. This processing is technically complex, requiring substantial investment in time and resources, which is often a barrier for countries outside of China. The high cost of labor and stringent environmental regulations in Western nations contribute to their reliance on Chinese supplies.

• [00:30] "europium is used in television and computer screens"
• [00:38] "There are more than 15 countries and territories listed as having reserves"
• [01:26] "China now controls the market, partly because of its huge scale..."

The formation of rare earth elements involves geological processes that occur over millions of years. These elements are typically found in igneous rocks and are often associated with minerals such as bastnasite and monazite. The specific conditions under which these elements are formed include high temperatures and specific chemical environments that facilitate their concentration.

Locating these elements involves geological prospecting methods that have evolved over the years. The transcript does not detail specific technical developments in prospecting and mining, but it does imply that the vast reserves in countries like Brazil and Australia can be utilized. The efficiency of rare earth mining is further influenced by technological advancements in extraction methods, although these are not explicitly mentioned in the transcript.

China’s extensive mining and processing capabilities have led to a significant advantage in the global market, enabling it to dominate the supply chain. The transcript notes that the industry flourished significantly after the discovery of rare earths in California in 1949 and that the opening of hundreds of mining operations in China during the 1980s allowed the country to surpass the United States as the main producer by the turn of the century.

• [01:07] "the industry really flourished after they were found in California in 1949"
• [01:15] "China began opening hundreds of mining and processing firms"
• [01:19] "China surpassed America as the main producer at the turn of this century"

The process of mining, extraction, and refining rare earth elements is intricate and multifaceted. Initially, mining involves the extraction of ore that contains a low concentration of rare earth minerals. This step can be labor-intensive and is often performed in regions rich in these minerals, such as parts of China, Brazil, and Australia.

Once the ore is mined, it undergoes a series of processes to extract the rare earth elements. The first step is crushing the ore, followed by separation and purification of individual rare earth elements. This is a complex procedure that requires substantial technical expertise and investment, particularly in terms of time and resources. The transcript highlights that this complexity is a significant barrier for many countries outside of China, where labor is more expensive and environmental regulations are stricter.

The transcript reflects on the challenges faced by Western nations in competing with China's dominance in the market due to its lower costs and less stringent environmental controls. As a result, countries like the U.S. have become heavily reliant on Chinese supplies, which poses strategic risks in terms of supply chain vulnerabilities.

• [01:31] "Mining rare earths is only part of the process"
• [01:39] "In the West, labour is more expensive and there are stricter environmental regulations"
• [01:44] "China's dominance, though, is now creating a problem"

The environmental costs associated with rare earth mining are significant and have raised serious concerns regarding public health and ecological sustainability. Mining operations are known to produce considerable amounts of pollutants, which can have detrimental effects on both miners and local populations. The processes involved in extracting rare earths are highly polluting, contributing to the degradation of air and water quality in surrounding areas.

The transcript does not detail specific health effects on miners or residents, but it emphasizes that the work is extremely polluting. This pollution can lead to a range of health issues due to exposure to hazardous materials during both the mining and processing stages. The inherent risks of mining rare earths are exacerbated by the lack of stringent environmental regulations in some producing countries, particularly in China, where the industry has thrived.

Furthermore, the environmental implications extend beyond immediate health risks. The long-term impact of mining can result in the contamination of local water supplies and soil, affecting agriculture and biodiversity. The transcript indicates a growing recognition of these issues, suggesting that the need for more responsible mining practices is becoming increasingly critical as global demand for these elements rises.

• [01:31] "Mining rare earths is only part of the process"
• [01:40] "there are stricter environmental regulations"
• [01:44] "China's dominance, though, is now creating a problem"

China's position in the rare earth market is characterized by a substantial degree of control and dominance. The country is noted to supply nearly 70% of the ore from which rare earths are extracted and over 90% of the refined materials used globally. This level of dependency creates significant vulnerabilities for countries reliant on these materials, particularly the United States, which sources 80% of its rare earths from China.

The transcript discusses how China's control over the market has been established over decades, beginning with its rise as the main producer at the turn of the century after opening hundreds of mining and processing firms in the 1980s. The scale of China’s operations has allowed it to dominate the sector, partly due to lower production costs and less stringent environmental regulations.

Additionally, the transcript mentions the potential for market disruption due to geopolitical tensions. For instance, following tariffs imposed by the U.S. on China, China responded by placing export controls on rare earths, which underscored the strategic importance of these elements in international relations. This scenario illustrates the delicate balance of power in the global supply chain and highlights the potential for illegal mining activities to exacerbate market instabilities.

• [00:51] "China's firms supply nearly 70% of the ore"
• [01:23] "China now controls the market, partly because of its huge scale"
• [02:14] "China's become more willing to hold up the supply of rare earths"

The role of rare earth elements in international politics has become increasingly significant, particularly in the context of the United States' strategy to reduce dependency on Chinese supplies. During the Trump administration, a concerted effort was made to bolster domestic production and lessen reliance on China, which is depicted as a strategic adversary in the context of rare earth supply chains.

The transcript highlights that the U.S. defense department became the largest shareholder in MP Materials, the country’s only rare-earths producer. This move was part of a broader strategy to ensure a consistent supply of these critical materials necessary for defense and technology sectors. Additionally, the partnership between the U.S. and Australia, under Prime Minister Anthony Albanese, signifies a collaborative approach to mining projects aimed at diversifying sources of rare earths.

Furthermore, the geopolitical tensions exacerbated by tariffs and export controls illustrate how rare earths are not just commodities but also tools of political leverage. The U.S. tariffs on China prompted China to implement export restrictions, highlighting the critical nature of these elements in international trade relations. This scenario has led to a pressing need for alternative sources and technologies to mitigate risks associated with supply chain disruptions.

• [01:36] "Donald Trump's defence department has become the largest shareholder in the country’s only rare-earths producer"
• [02:36] "To reduce America's reliance on China"
• [02:28] "China knows the power of its rare-earth weapon"

Countries with significant reserves of rare earth elements include Brazil, which is noted to have the world’s second-largest reserves, and Australia, which is also highlighted for its large deposits. The transcript mentions that there are over 15 countries and territories that have been identified as having reserves of these critical metals, indicating a more diversified global landscape for potential production.

Emerging players in the market include MP Materials, the U.S. company that has garnered attention due to its strategic importance as the only rare-earths producer in the country. With the U.S. government backing, it is positioned to play a crucial role in reducing reliance on foreign supplies, particularly from China.

In addition to these established players, the cooperation between the U.S. and Australia on mining projects signifies a strategic alliance aimed at increasing production and ensuring a stable supply chain. This partnership, however, will take years to ramp up production to meet the anticipated demand, reflecting the long-term nature of investments required in the sector.

• [00:42] "Brazil, for example, has the world’s second-largest reserves"
• [02:49] "Brazil and Australia also have large reserves"
• [02:52] "signed a deal with Trump to cooperate on mining projects"

Several rare earth elements are identified as critical due to their essential roles in modern technology and industry. Elements like neodymium, used in electric vehicle magnets, gadolinium, utilized in medical imaging, and europium, vital for display technologies, are particular examples of these critical materials.

The global supply chains for these elements are characterized by their vulnerabilities, largely stemming from the concentration of production in China. The transcript highlights that China supplies nearly 70% of the ore and over 90% of the refined materials, creating a dependency that poses risks for other nations. This reliance highlights the organizational structure of the supply chain, which is heavily skewed towards a single country, leading to potential disruption during geopolitical tensions.

As the demand for rare earth elements continues to grow, the vulnerabilities within these supply chains become increasingly apparent. The need for alternative sources and innovations in recycling and substitution technologies is underscored by the challenges presented by China's dominant market position.

• [00:21] "Neodymium makes magnets that go into electric vehicles and wind turbines"
• [00:25] "Gadolinium is used in lasers and as a contrast agent for MRIs"
• [00:30] "Europium is used in television and computer screens"

Alternative technologies and innovations are being explored to reduce or eliminate the need for rare earth elements, driven by the geopolitical landscape and supply chain vulnerabilities. One significant example mentioned in the transcript is the development of a heavy rare-earth-free magnet by Japanese firms following China's export restrictions in 2010. This innovation aimed to create viable alternatives for hybrid vehicle motors, showcasing how industry players can adapt to supply challenges.

Another promising area is the synthesis of tetrataenite, a material found in meteorites that exhibits magnetic properties similar to those of rare-earth metals. Although scientists have been able to synthesize tetrataenite in laboratories since the 1960s, the process has been slow and expensive. Recent efforts focus on accelerating this synthesis and reducing costs, making it a viable substitute for rare earths in various applications.

These developments reflect a growing recognition of the need for consistent investment in alternatives and innovations. As China's control over rare earth supplies becomes more pronounced, the urgency to find substitutes that can mitigate risks associated with dependency on a single supplier is increasing.

• [04:03] "Japanese firms developed a heavy rare-earth-free magnet for hybrid-vehicle motors"
• [04:14] "scientists have been synthesising tetrataenite... similar to those of rare-earth metals"
• [04:30] "they're looking at ways to speed things up and get the price down"

The recycling of rare earth elements is emerging as a crucial strategy to mitigate the need for newly mined materials and to address supply chain vulnerabilities. The transcript highlights Apple’s commitment to a $500 million partnership with MP Materials, aimed at creating a recycling line in Mountain Pass, California, which will focus on producing magnets from recycled rare earths. This initiative demonstrates a proactive approach to reducing the dependency on newly mined rare earths.

However, the recycling process is not straightforward and involves several economic and technical criteria that must be considered before initiating mining operations or recycling programs. The transcript does not provide specific details on the economic criteria, but it emphasizes that the concentration of rare earths in existing products is a challenge, primarily because many electric vehicles on the road are relatively new and will not appear in scrap yards for years.

The chicken and egg problem mentioned in the transcript highlights the interdependence between the availability of rare earths for recycling and the presence of products that can be recycled. This dynamic underscores the need for sustained investments in both recycling technologies and the development of products designed for easier recovery of rare earth elements.

• [02:23] "the world still needs them"
• [02:26] "the year-long truce might lead companies and governments to relax"
• [03:34] "on a cutting-edge rare-earth recycling line in Mountain Pass, California"

[00:00] What makes rare earths
[00:01] so critical?
[00:03] These 17 metals
[00:05] are crucial components
[00:06] of the products
[00:06] you use every day,
[00:08] even the device
[00:09] you're watching this on
[00:16] Rare earths are in almost
[00:18] every modern electronic good
[00:20] Neodymium, for example,
[00:21] makes magnets
[00:22] that go into electric vehicles
[00:24] and wind turbines
[00:25] Gadolinium is used in lasers
[00:27] and as a contrast agent
[00:28] for MRIs
[00:30] And europium
[00:30] is used in television
[00:32] and computer screens
[00:34] But despite their name
[00:35] rare earths
[00:36] aren’t actually very rare
[00:38] There are more than 15 countries
[00:40] and territories
[00:40] listed as having reserves
[00:42] Brazil, for example,
[00:43] has the world's
[00:44] second-largest reserves
[00:45] of rare-earth elements
[00:47] The world leader, though,
[00:49] is China
[00:50] Its firms supply
[00:51] nearly 70% of the ore
[00:53] from which rare earths
[00:54] are extracted,
[00:56] and more than 90%
[00:57] of the refined materials
[00:59] America gets
[01:00] 80% of its rare earths
[01:02] from China
[01:03] The first rare earths
[01:05] were discovered in the 1700s,
[01:07] but the industry really flourished
[01:09] after they were found
[01:10] in California in 1949
[01:12] Then in the 1980s
[01:14] China began opening
[01:15] hundreds of mining
[01:16] and processing firms
[01:17] The country surpassed America
[01:19] as the main producer
[01:20] at the turn of this century
[01:22] China now controls
[01:23] the market,
[01:24] partly because of
[01:25] its huge scale,
[01:26] and partly
[01:27] because other countries
[01:28] were happy to avoid
[01:29] the extremely polluting work
[01:31] Mining rare earths
[01:32] is only part of the process
[01:33] Separating and purifying
[01:35] the minerals
[01:35] takes time and money
[01:37] In the West
[01:38] labour is more expensive
[01:39] and there are stricter
[01:40] environmental regulations
[01:42] China's dominance, though,
[01:44] is now creating a problem
[01:47] In April 2025
[01:48] Trump declared
[01:49] 34% tariffs on China,
[01:52] sparking fears of a trade war
[01:54] Two days later
[01:55] China put export controls
[01:57] in place,
[01:58] meaning that rare earths
[01:59] could no longer be
[02:00] sent out of the country
[02:01] without a special licence
[02:03] Further restrictions
[02:04] were announced in October—
[02:05] though a one-year delay
[02:06] was agreed
[02:07] after talks in South Korea
[02:09] From zero to ten,
[02:10] with ten being the best,
[02:11] I would say the meeting
[02:12] was a 12
[02:13] China's become more willing
[02:14] to hold up the supply
[02:15] of rare earths,
[02:16] but the world
[02:17] still needs them
[02:20] The year-long truce
[02:21] might lead companies
[02:22] and governments to relax
[02:23] But China knows the power
[02:25] of its rare-earth weapon
[02:26] and will only be tempted
[02:27] to use it again
[02:29] That means alternative options
[02:30] need to be developed
[02:31] So what could they be?
[02:34] To reduce America's
[02:35] reliance on China,
[02:36] Donald Trump's defence department
[02:37] has become the largest shareholder
[02:40] in the country's
[02:40] only rare-earths producer,
[02:42] MP Materials
[02:45] Brazil and Australia
[02:47] also have large reserves
[02:49] Anthony Albanese,
[02:50] Australia's prime minister,
[02:51] has signed a deal with Trump
[02:52] to cooperate on mining projects
[02:54] across the two countries
[02:56] Today will be seen
[02:57] as a really significant day
[02:59] in our relationship
[03:00] But it will take years
[03:01] to ramp up production
[03:02] to the levels needed
[03:03] to satisfy demand
[03:06] Alternatively, recycling
[03:08] could reduce the amount
[03:09] of new rare earths
[03:11] that need to be extracted
[03:12] in the first place
[03:14] The ores that contain rare earths
[03:15] have quite low concentrations,
[03:17] so the best source of the metals
[03:19] is in the products
[03:20] that already exist
[03:22] Apple has committed
[03:23] to a $500m partnership
[03:25] with MP Materials
[03:26] to make magnets
[03:28] from recycled rare earths
[03:29] We're thrilled to work together
[03:31] on a cutting-edge
[03:32] rare-earth recycling line
[03:34] in Mountain Pass, California
[03:36] This, too, will take years
[03:38] because there's a
[03:38] “chicken and egg” problem
[03:40] Having a lot of rare earths
[03:41] come from recycling
[03:43] relies on having a lot of products
[03:44] out there to recycle
[03:46] At the moment
[03:47] most of the electric cars
[03:48] on the road
[03:48] are relatively new
[03:49] and so they aren't
[03:50] going to show up
[03:51] in the scrap yard
[03:51] for many years
[03:53] Another approach
[03:54] is to find alternatives
[03:55] to rare earths
[03:57] After China
[03:58] banned the export
[03:59] of the elements to Japan
[04:00] in 2010,
[04:01] Japanese firms developed
[04:03] a heavy rare-earth-free
[04:04] magnet for hybrid-vehicle motors
[04:07] Other carmakers
[04:08] are now following suit
[04:10] Alternative materials
[04:11] are also gaining favour
[04:12] For example, scientists
[04:14] have been synthesising tetrataenite
[04:16] In nature it's found
[04:18] in some meteorites
[04:19] It has magnetic properties
[04:21] similar to those
[04:21] of rare-earth metals
[04:23] Scientists have been able
[04:24] to make tetrataenite in labs
[04:26] since the 1960s,
[04:27] but it's slow and expensive
[04:29] Now they're looking at ways
[04:30] to speed things up
[04:31] and get the price down
[04:34] Consistent investment
[04:35] is perhaps the most
[04:36] important way
[04:37] to see change
[04:39] In the past,
[04:39] when China has restricted
[04:41] and then restored
[04:41] the supply of rare earths,
[04:43] companies have reduced
[04:44] investment into alternatives
[04:45] But now that
[04:46] China is using its power
[04:48] over rare earths more often,
[04:50] the rest of the world
[04:51] has a strong reason
[04:52] to keep investing

China's Dominance in Rare Earth Elements

China holds a significant monopoly over rare earth elements (REEs), essential for modern technology and defense systems. With control over 90% of the world’s REE refining, China has established itself as the leading supplier of materials crucial for manufacturing fighter jets, smartphones, and renewable energy technologies.

Historically, the US led the global market for REEs until the mid-1990s, but a shift toward outsourcing and environmental concerns allowed China to capitalize on the opportunity. The Chinese government invested heavily in its rare earth industry, providing infrastructure, subsidies, and a workforce trained in mineral engineering. This strategic planning has allowed China to dominate the entire supply chain, from mining to magnet production, capturing nearly 60% of global REE mining and 92% of magnet production.

China's approach has included strict export controls on critical elements, which has raised alarms in the US regarding national security and technological independence. The US has attempted to respond, including initiatives to bolster domestic production and reduce reliance on Chinese supplies, but these efforts are hampered by a lack of infrastructure and workforce development.

Furthermore, China's Belt and Road Initiative has expanded its influence in the global mining sector, with significant investments made in countries across Africa, Latin America, and Asia. This initiative not only secures raw materials for China but also strengthens its geopolitical leverage.

As the competition for REEs intensifies, the US must urgently address its vulnerabilities in this critical sector to avoid falling further behind in technological and military capabilities.

Rare earth elements (REEs) are a group of 17 chemically similar elements crucial for modern technology, often referred to in connection with high-tech applications. They include elements such as Prometheium, Gadolinium, and Disprosium, which are essential in the manufacturing of various advanced technologies, including fighter jets, smartphones, and wind turbines. While the term 'rare earth' might suggest scarcity, these elements are relatively abundant in the Earth's crust, but they are seldom found in economically exploitable concentrations.

The distinction between rare earth minerals and processed metals is significant. Rare earth minerals are naturally occurring ores that contain these elements in their raw form, often mixed with other minerals. The challenge lies in extracting and refining these minerals into purified metals that can be used in manufacturing. The refining process involves complex chemical separation techniques to isolate the desired elements from the surrounding material. This is where the technical complexity arises, and it is noted that this process can be up to 9 to 13 times more energy-intensive than simply mining the ores themselves.

Furthermore, it is important to highlight that China has established a dominant position in this market, controlling about 90% of the world's rare earth refining. This monopoly not only stems from their extensive reserves but also from their ability to refine these elements efficiently, making them indispensable in the global supply chain for various technologies.

• [00:06] "China has a monopoly on space age sounding stuff like Prometheium and Gadolinium and Disprosium..."
• [00:10] "...there's no better place to go than China. Brazil has less than half what it has."
• [01:20] "90% of the world's rare earth refining happens in China. And this is enormous leverage."

Rare earth elements (REEs) are formed through various geological processes over millions of years, often found in igneous and metamorphic rocks. They are typically located in deposits that require extensive exploration to identify. The transcript indicates that China possesses the most substantial reserves of these elements, with other countries like Brazil having significantly smaller amounts. The ability to locate and extract these elements efficiently is determined by a combination of geological knowledge and technological advancements.

While the transcript does not specify technical developments directly, it alludes to the challenges involved in prospecting and mining REEs. The process of separating these elements from the surrounding rock is complex and energy-intensive, which implies that advancements in geological surveying technology and extraction methods would be critical for improving the efficiency and viability of mining operations.

Moreover, it is mentioned that separating rare earths takes significantly more energy than extraction. This energy requirement underscores the need for reliable power sources, which China supports with its extensive coal-fired power plant network, thereby providing a competitive edge in production. As a result, the conditions under which REEs are formed and the methods used to locate them are pivotal in understanding the global dynamics of this market.

• [00:39] "Just to find these rare earth elements underground, there's no better place to go than China."
• [06:19] "...there's a saying when you talk about rare earths that they're more earth than rare..."
• [07:03] "Good thing then for China that it could rely on its expansive and expanding network of coal fired power plants."

The entire process of mining, extraction, and refining rare earth elements is intricate and multifaceted. Initially, the mining begins with locating rare earth deposits, which are often embedded within complex geological formations. Once identified, the extraction involves physically removing the ore from the ground, which is just the start of a series of more complex processes.

After mining, the ore must be crushed and ground into a fine powder to facilitate the separation of rare earth elements. This is followed by a chemical separation process, where various techniques, such as solvent extraction or ion exchange, are employed to isolate the specific elements from other materials. This refining stage is crucial as it transforms raw minerals into usable, purified rare earth metals.

However, the transcript highlights that this process is not only energy-intensive but also poses a significant barrier for countries attempting to compete with China in the REE market. For instance, it is stated that the separation of rare earths requires 9 to 13 times more power than simply extracting them, making the refining process a substantial challenge. Furthermore, China's dominance in this area is attributed to its extensive infrastructure and lower energy costs, primarily due to a reliance on coal power.

Ultimately, the complexity of these processes and the associated energy demands create a significant barrier for countries like the United States, which are struggling to catch up in terms of both production capacity and refining technology.

• [07:01] "Separating rare earths takes 9 to 13 times as much power as simply taking them out of the ground."
• [00:46] "...if the US mined what China mines in a year, it would completely exhaust its own reserves in well under a decade."
• [01:20] "...90% of the world's rare earth refining happens in China."

The environmental costs associated with rare earth mining are significant and multifaceted. The transcript notes that the extraction and refining processes can have devastating impacts on local ecosystems, including soil degradation, water contamination, and potential health issues among nearby residents. Specifically, it mentions that the mining and refining of rare earths can lead to harmful levels of pollutants being released into the environment.

For instance, the transcript references specific health effects, including potential developmental disorders among children who live in proximity to mining operations, as well as the presence of rare earth elements in their urine. This indicates a concerning link between mining activities and public health risks. Additionally, there is an acknowledgment of the long-term consequences of mining, highlighting that while these practices may be economically beneficial in the short term, they can lead to long-lasting environmental damage.

Furthermore, the environmental regulations in China are notably less stringent than those in the United States, allowing for an aggressive approach to rare earth mining. The transcript states that China does not worry as much about the environmental ramifications, which has historically allowed them to dominate this industry. The lack of concern for environmental protection contributes to a competitive edge but raises substantial ethical and health-related questions about the sustainability of these practices.

• [05:29] "...China didn’t worry as much as the United States about just how damaging to the land, to the soil, to crops, to groundwater that this mining and refining of rare earths might end up being."
• [05:42] "Were there intellectual development disorders among children...potentially harmful levels of rare earths in their urine? Sure."
• [05:14] "...let other countries do that dirty work."

China's position in the rare earth elements market is characterized by a significant monopoly and a well-coordinated strategy that has led to its dominance on a global scale. The transcript highlights that China controls nearly 60% of all rare earth mining worldwide and an even more staggering 92% of global magnet production. This extensive control not only allows China to dictate prices but also to exert substantial influence over international supply chains.

One of the key factors contributing to this monopoly is China's aggressive investment in mining infrastructure, including research funding, subsidies, and the construction of essential facilities. Over the years, China has invested over $96 billion into the mining industry globally through initiatives like the Belt and Road Initiative. This strategic move has enabled China to extend its influence and secure access to rare earth resources beyond its borders.

Moreover, the transcript mentions that China's government has imposed strict regulations to prevent its mining talent from working on rare earth projects outside its borders without explicit authorization. This tactic effectively locks down critical expertise and technology, further consolidating China's leading position. Such measures ensure that any advancements in rare earth extraction and processing remain within China's control, making it increasingly difficult for other countries to compete.

In summary, China's monopoly on rare earth elements not only disrupts the market but also raises significant concerns about international dependency, particularly for countries reliant on these critical resources.

• [09:00] "China owns a whopping 92% of global magnet production."
• [08:10] "...more than half the current domestic mining workforce will need to be retired and replaced by 2029."
• [11:26] "Since 2013, China has pumped over $96 billion into the mining industry globally."

The role of rare earth elements in international politics has become increasingly pronounced, especially concerning the United States and China. The transcript outlines that the U.S. has recognized its dependency on Chinese rare earths, particularly in strategic sectors such as defense and technology. In response, the Trump administration prioritized strategies to reduce this dependency, seeking to bolster domestic production and processing capabilities of rare earth elements.

One specific strategy mentioned was Trump's focus on acquiring resources abroad to ensure a stable supply. This included his controversial interest in Greenland for its mineral wealth, which he proposed as a means to secure access to essential materials for national security. The transcript states that Trump insisted on terms that included rare earth agreements being tied to U.S. involvement in international conflicts, such as in Ukraine.

Furthermore, the U.S. administration's approach was characterized by a recognition of the critical weakness posed by China's dominance in the rare earth market. The transcript notes that the Chinese government has expanded export controls on rare earth elements, which poses additional challenges for the U.S. as it attempts to navigate this complex geopolitical landscape. The overarching theme is that the competition for rare earth elements is akin to historical struggles for oil and energy, highlighting its importance for national and international security.

• [10:05] "We need Greenland for national security and even international security."
• [05:06] "...some work was just too dirty to do and maybe it was better to let other countries do that dirty work."
• [09:26] "China has expanded export controls on rare earth elements."

The transcript does not provide specific details on new players entering the rare earth market. It primarily focuses on China's dominant position and the challenges faced by the United States and other countries in securing their own rare earth resources. However, it does emphasize that certain countries and companies are attempting to explore and develop their own rare earth capabilities in response to China's monopoly.

It mentions that while countries like Brazil have some reserves, they are significantly less than China's, with Brazil having less than half of the rare earth reserves compared to China. The United States is also noted to have substantial challenges, particularly in the context of the current mining workforce needing significant replacement by 2029.

Overall, while the transcript touches on the broader implications of rare earth dependency and competition, it lacks specific references to emerging countries or companies making notable advances in the sector.

• [00:41] "Brazil has less than half what it has. And no other country comes close, including the United States."
• [08:39] "...the current domestic mining workforce will need to be retired and replaced by 2029."
• [09:11] "Not only do they have the minerals, they then separate them and they actually manufacture them."

Several rare earth elements are identified as critical due to their essential roles in various technologies and applications. For instance, elements like Samarium and Terbium are highlighted as critical for military applications, such as missile guidance systems and night vision goggles. The demand for these elements arises from their unique properties that make them indispensable in advanced technologies.

The transcript indicates that the global supply chains for these elements are vulnerable due to their concentration in China, which controls the majority of both mining and refining processes. This centralized control creates significant risks for countries dependent on these materials, as any disruptions in supply can lead to serious consequences in industries ranging from defense to consumer electronics.

Furthermore, the organizational structure of the supply chain is such that it is heavily reliant on a few key players, predominantly China. This dominance not only raises concerns about supply security but also about pricing power, as China can dictate terms to other nations seeking to access these critical resources.

• [03:19] "Samarium, a critical element of Samarium cobalt magnets...incredibly reliable at high temperatures..."
• [03:39] "...if you're a US Marine carrying out a nighttime raid, that's useful in night vision goggles..."
• [05:28] "...controlling the elements that allow the manufacture of everything from fiber optics to semiconductors to MRI machines..."

The transcript does not provide specific information on alternative technologies or innovations aimed at reducing or eliminating the need for rare earth elements. It focuses primarily on the current state of rare earth mining, refining, and China's dominance in the market. This suggests that while there may be ongoing research into alternatives, the transcript does not delve into any particular innovations or technologies that might serve as substitutes for these critical materials.

The transcript does not contain detailed information regarding the recycling of rare earth elements. It primarily discusses the mining and refining processes, the environmental and health impacts associated with these activities, and the geopolitical aspects of rare earth dependency. As such, specific economic and technical criteria for initiating mining operations are also not mentioned.

[00:00] China has the US in a periodic table
[00:03] chokeold. 17 of them really, one for
[00:06] each of the so-called rare earth
[00:07] elements found in nature. China has a
[00:09] monopoly on space age sounding stuff
[00:12] like Prometheium and gatalinium and
[00:14] disprosium and without which you cannot
[00:17] make things like today's fighter jets
[00:19] and submarines, smartphones and TVs,
[00:22] wind turbines and nuclear reactors,
[00:25] radar, sonar, camera lenses, fuel cells.
[00:28] You want those things. you have no
[00:29] choice but to go to China. Because let's
[00:32] set aside for a moment that just to find
[00:35] these rare earth elements underground,
[00:36] there's no better place to go than
[00:39] China. Brazil has less than half what it
[00:41] has. And no other country comes close,
[00:43] including the United States, by the way.
[00:46] And just to put that inequality in
[00:48] context, if the US mined what China
[00:50] mines in a year, it would completely
[00:52] exhaust its own reserves in well under a
[00:55] decade. Not good. if you still want to
[00:57] be in the fighter jet business 10 years
[00:59] from now. But more important than where
[01:01] you can find these rare earths is where
[01:03] you can do the much more difficult job
[01:05] of turning those clumps of dirt, rock,
[01:08] and metal that you dig up into something
[01:10] pure enough you can actually use. China
[01:13] is one of the only places in the world
[01:16] with the expertise and the
[01:18] infrastructure to do that kind of
[01:20] processing. 90% of the world's rare
[01:23] earth refining happens in China. And
[01:25] this is enormous leverage.
[01:28] >> China is doing that with rare earths.
[01:30] It's limiting this critical ingredient
[01:32] that no one else is producing. This is
[01:33] why we need to be able to make our own
[01:35] chips and our own computers and our own
[01:36] products downstream because it takes
[01:38] away leverage from China. They do have a
[01:40] lot of leverage right now
[01:41] >> among Donald Trump's many day one
[01:43] priorities. Start playing catchup. But
[01:46] the US is so far behind. It's worth
[01:49] asking exactly how did China win the
[01:53] rare earth race so decisively.
[01:56] [Music]
[02:01] China gave itself such a huge lead first
[02:03] by realizing there was something worth
[02:05] racing for. One of the most important
[02:08] and easily the most valuable uses of
[02:10] rare earth elements is making magnets.
[02:13] Except these aren't just like regular
[02:15] iron magnets. They're many, many times
[02:17] stronger. 10, 15 fold. And magnets are
[02:21] important because they're like the
[02:23] little invisible muscles that make
[02:25] everything in modern technology move. In
[02:28] a motor, for example, magnets can make
[02:30] things spin. If you make one strong
[02:33] enough, you can make a mag left train
[02:36] float. Make one small enough, and you
[02:39] can pack more and more electronics into
[02:41] something like this. And if you combine
[02:44] strength with small size, that's called
[02:46] efficiency. Now all of a sudden you can
[02:48] make something like a wind turbine spin
[02:51] with less wind. These rare earth magnets
[02:55] are what make modern, increasingly
[02:57] miniaturaturized technology possible.
[03:00] They're what make clean and green
[03:02] technology possible. And they're what
[03:03] make the world's most powerful military
[03:05] technology possible. Consider just some
[03:09] of those rare earth elements China
[03:11] locked down back in April under strict
[03:14] export controls, picking and choosing
[03:15] which countries get access to them.
[03:17] Something like Samarium, a critical
[03:19] element of Samarium cobalt magnets,
[03:22] incredibly reliable at high
[03:23] temperatures, so you might use one in a
[03:25] missile guidance system or an F-35 jet
[03:29] engine. Are both China and the US keenly
[03:32] aware of what this kind of dependence
[03:34] means? Yeah, absolutely. Or how about
[03:37] turbium if you're a US Marine carrying
[03:39] out a nighttime raid that's useful in
[03:41] night vision goggles turning infrared
[03:43] light into something visible. Scandium
[03:46] used in ultralight applications where
[03:48] weight matters. So aircraft, naval,
[03:51] aerospace applications because scandium
[03:54] is strength, durability, resistance to
[03:57] fatigue. The same way that we competed
[04:00] for oil and energy sources in the 19th
[04:03] and 20th centuries is how we are going
[04:06] to and how we already are competing for
[04:09] these minerals in the 21st century. We
[04:11] are in a competition for these minerals
[04:13] now and that competition is going to
[04:15] last probably the rest of my lifetime.
[04:17] So you can start to see why controlling
[04:19] the elements that allow the manufacturer
[04:21] of everything from fiber optics to
[04:23] semiconductors to MRI machines, why that
[04:26] might be helpful to the national
[04:28] security interests of one of the fastest
[04:30] growing and most important economies in
[04:32] the world, especially when they start to
[04:35] notice a glaring weakness in their most
[04:38] formidable competitor.
[04:40] [Music]
[04:45] If step one for China in establishing
[04:47] rare earth dominance was recognizing
[04:49] potential, step two was recognizing
[04:53] opportunity. From the early 1960s to the
[04:56] mid90s, the US was the global leader
[04:59] when it came to rare earths. But what
[05:01] gradually began to take hold was this
[05:03] view that some work was just too dirty
[05:06] to do and maybe it was better to let
[05:09] other countries do that dirty work. We
[05:11] were always very happy for this
[05:13] environmentally
[05:14] uh negative industry to take place
[05:16] somewhere else and China does not have
[05:18] the same environmental restrictions.
[05:20] >> So, China went allin making it all but
[05:22] impossible for the US to even compete
[05:25] because China didn't worry as much as
[05:28] the United States about just how
[05:29] damaging to the land, to the soil, to
[05:32] crops, to groundwater that this mining
[05:35] and refining of rare earths might end up
[05:37] being. Were there intellectual
[05:39] development disorders among children and
[05:42] even 15 years later potentially harmful
[05:44] levels of rare earths in their urine?
[05:47] Sure. And this would become a real focal
[05:49] point of recovery later on. But at the
[05:52] time it was a cost of doing business.
[05:54] >> You can look at every single uh
[05:57] five-year plan China has put out for the
[06:00] last 30 years. every single one China
[06:03] talks about the importance of strategic
[06:05] industrial capacity which is almost
[06:08] entirely a code word for this type of
[06:10] refining capacity. At first it was
[06:12] purely an engine of economic development
[06:14] and now it is a strategic asset.
[06:17] >> China also realized very early on how
[06:19] demanding it would be because there's a
[06:22] saying when you talk about rare earths
[06:24] that they're more earth than rare
[06:26] meaning you can find them in lots of
[06:29] places. The difficulty is in separating
[06:32] out these sometimes trace elements from
[06:34] all the other junk that you dig up.
[06:35] Because it's not like you just find a
[06:37] pure vein of praiseium somewhere. It's
[06:40] more like you have this this mound of
[06:42] material that you need to crush. You
[06:44] need to grind it up and then chemically
[06:46] separate and then refine and
[06:48] reconstitute it as something useful.
[06:50] This is hugely energy intensive. just
[06:53] for some context that separating rare
[06:55] earths takes 9 to 13 times as much power
[06:59] as simply taking them out of the ground.
[07:01] >> Good thing then for China that it could
[07:03] rely on its expansive and expanding
[07:07] network of coal fired power plants.
[07:10] >> Energy costs in China are much lower
[07:13] because it is super lowcost coal power.
[07:15] And all of this only begins to hint at
[07:18] the massive scale on which the Chinese
[07:20] government built this industry from
[07:22] nothing. Providing land, research
[07:25] funding, subsidies, loans, tax credits.
[07:28] >> The state also built a lot of the
[07:30] infrastructure that you need. The mining
[07:31] industry and especially the rare earth
[07:33] industry is extremely energy intensive,
[07:35] water intensive. It requires
[07:37] transportation infrastructure. So the
[07:39] Chinese state played a very active role
[07:41] in that. It also developed a series of
[07:44] rules designed to keep all of its talent
[07:47] inside Chinese borders.
[07:49] >> China has essentially banned that
[07:51] Chinese nationals from being able to
[07:53] work on rare earth projects anywhere in
[07:56] the world without explicit authorization
[07:58] from the Chinese government. So what
[08:00] China is really doing is locking down on
[08:02] any leakage of technology or human
[08:05] capabilities. This is a huge problem for
[08:07] the United States in particular when you
[08:10] consider that according to one
[08:11] Washington think tank more than half the
[08:13] current domestic mining workforce will
[08:15] need to be retired and replaced by 2029.
[08:18] That's an overwhelming challenge
[08:20] compared to the just 327
[08:23] degrees awarded in 2020 in mining and
[08:26] mineral engineering. And in stark
[08:28] contrast with China, where just one
[08:30] program at one university has 1,000
[08:33] undergraduates and 500 graduate students
[08:36] alone. The net result of this all-in
[08:39] hyperco competitive approach, complete
[08:42] top-down dominance. This innermost ring,
[08:45] China's share of all rare earth mining
[08:48] worldwide, close to 60%. Not even the US
[08:51] comes close here. And as you go further
[08:53] down the supply chain, separating,
[08:55] refining, and making magnets of the rare
[08:58] earth that's pulled from the ground,
[09:00] China owns a whopping 92% of global
[09:03] magnet production.
[09:05] >> Not only do they have the minerals, they
[09:07] then separate them and they actually
[09:09] manufacture them. So what China has done
[09:11] is managed to master the entirety of
[09:12] this supply chain.
[09:15] [Music]
[09:18] >> China understands full well what
[09:20] leverage it now has over the US.
[09:23] >> China has expanded export controls on
[09:26] rare earth elements. This measure is
[09:28] aimed at industries such as defense and
[09:30] semiconductors.
[09:31] >> This as the White House plans to hit an
[09:33] additional 100% tariff on Beijing
[09:36] starting November 1st. The US and others
[09:38] have stockpiles, but they will go
[09:40] through those stock piles relatively
[09:42] quickly. Uh, and the Chinese are
[09:44] counting on this being one pressure
[09:46] point.
[09:46] >> And Donald Trump likely understands this
[09:48] critical weakness, which he has tried to
[09:51] shore up with his early obsession with
[09:53] Greenland.
[09:54] >> To guarantee access to these precious
[09:56] materials, Trump wants to buy Greenland.
[09:59] And if that doesn't work, simply take
[10:02] it. We need Greenland for national
[10:05] security and even international
[10:07] security.
[10:08] >> And his insistence that American
[10:09] involvement in Ukraine come with mineral
[10:12] deal strings attached.
[10:14] >> We want something for our efforts and we
[10:17] said rare earth. They're very good rare
[10:20] earth. We're looking for rare earth all
[10:21] the time and uh they have a lot.
[10:24] >> But even on this global scale searching
[10:26] for advantages abroad, China has a
[10:29] year'sl long head start. its belt and
[10:31] road initiative. This massive
[10:33] infrastructure project spanning
[10:35] basically the entire eastern half of the
[10:37] world building railroads, pipelines,
[10:39] ports, shipping lanes. It's become this
[10:42] trillion dollar project that's really
[10:44] now about extending Chinese influence
[10:46] and investment around the world. Its
[10:49] biggest expenditure under this umbrella
[10:51] is in energy, but mining comes second.
[10:54] Since 2013, China has pumped over $96
[10:57] billion into the mining industry
[11:00] globally. And last year in 2024, it hit
[11:03] an all-time high with 12.6 billion in
[11:08] investment for the mining industry
[11:10] through the Belt and Road Initiative.
[11:12] So, not only has China made the most of
[11:14] its own natural abundance of rare earths
[11:16] and leaned hard into extracting and
[11:19] processing and making things with it,
[11:21] it's also managed to increasingly tap
[11:23] into the rest of the world's capacity to
[11:26] produce rare earths as well. Sourcing
[11:28] raw materials from Africa, from Latin
[11:31] America, and from the rest of Asia.
[11:32] >> As much as folks would like to reduce
[11:34] interdependence and vulnerabilities, uh
[11:37] you can't do that at the snap of a
[11:38] fingers or the signing of a pen. So,
[11:40] we're warp speeding our capabilities now
[11:43] at a time when we should have done it 15
[11:44] years ago when China first gave us the
[11:47] wakeup call.
[11:48] >> This is China's choke hold on America
[11:51] that the US is desperately trying but
[11:53] has so far been unable to break.
[11:58] [Music]

Itrium oxide is a rare earth element essential for various applications, including lasers, dental ceramics, and fighter jets. Its recent restriction by China highlights the geopolitical tensions surrounding critical resources, particularly between China, the EU, and the US. The episode delves into the complexities of rare earth production, which involves mining, processing, and refining—areas where China holds a significant global dominance, accounting for up to 70% of mining and 87% of processing.

Despite being called "rare," these elements are not scarce; they are abundant but difficult to extract economically. The challenges of developing a sustainable supply chain for rare earths have led to increased scrutiny of China's role, especially after its export restrictions in April 2023 affected European companies reliant on these materials. Interviewees, including experts and industry leaders, express concerns about the reliability of China as a business partner and the implications for EU-China relations.

Europe's quest for self-sufficiency in rare earths is fraught with challenges. For instance, efforts in Germany to explore local deposits faced economic viability issues, while recent discoveries in Sweden have sparked hope. However, experts caution that simply discovering deposits is insufficient; a comprehensive supply chain must be established, akin to China's integrated model.

As the episode concludes, it emphasizes the strategic importance of rare earths for Europe. The path to independence from China will require not only investment but also patience and long-term planning. The situation reflects broader themes of globalization and the need for Europe to reassess its industrial strategies in a changing geopolitical landscape.

Rare earth elements (REEs) are a group of 17 chemically similar elements located in the periodic table, specifically numbers 57 to 71, known as the lanthanide series, and including numbers 21 and 39, which are scandium and yttrium. Despite their name, these elements are not particularly rare in terms of availability in the Earth's crust; rather, they are challenging to extract and process economically.

The term rare earth minerals refers to the naturally occurring ores that contain these elements in various concentrations. However, the real challenge lies in the processing of these minerals to obtain refined metals. The processing of rare earth minerals involves several complex stages, including the separation of the various elements from one another, which is technically challenging due to their similar chemical properties.

Once mined, the ore must undergo refining to isolate the desired rare earth elements, which are then used in various applications, from lasers to dental ceramics to advanced technologies in defense and renewable energy sectors. The distinction between raw minerals and processed metals is crucial as the latter are utilized in high-tech applications that require specific purity levels and compositions.

• [01:25] "So-called rare earths are a set of 17 chemically similar elements."
• [02:45] "They are not actually that rare."
• [03:04] "What is rare are mines where rare arts are successfully extracted and processed in large quantities."

The formation of rare earth elements occurs through geological processes that take place over millions of years. These elements are typically found in igneous and metamorphic rocks, where they are concentrated through geological activity. Rare earths are located in various deposits worldwide, with China holding a significant share of the known reserves.

According to the transcript, there are approximately 100 known deposits of rare earth elements globally, but China dominates the mining, processing, and refining stages. The technical developments that enhance the efficiency of prospecting and mining are not explicitly detailed in the transcript. However, the mention of various companies exploring the viability of extraction and the ongoing search for innovative mining technologies suggests an industry-wide effort to improve efficiency.

New methods and technologies in the mining sector could potentially lower costs and enhance the economic viability of extracting these essential materials. Furthermore, the complexity of separating and processing rare earth elements remains a significant barrier, particularly for countries attempting to establish their supply chains and reduce dependency on Chinese imports.

• [01:41] "They have a multitude of industrial and technological uses covering everything from the car industry to defense to healthcare."
• [02:54] "This map shows almost 100 located in various places around the world."
• [05:12] "They are very difficult to separate one from the other."

The process of mining, extraction, and refining rare earth elements is multifaceted and involves three primary stages: mining, processing, and refining. Mining involves extracting rare earth ore from the Earth's crust, often through open-pit mining techniques. The transcript notes that China accounts for up to 70% of all rare earth mining worldwide.

Once the ore is mined, the next step is processing, which entails the intricate task of separating different rare earth elements from one another. China processes approximately 87% of the world's rare earths, indicating its dominance in this critical stage as well.

The final stage is refining, which purifies the separated elements. China leads this stage as well, accounting for over 90% of the global refining process. The transcript emphasizes that the entire operation is complex, highly industrial, expensive, and often leads to significant environmental pollution.

This complexity and cost present substantial barriers for other countries seeking to establish their rare earth supply chains. As noted, the economic challenges associated with producing rare earth elements often deter companies from entering the market, particularly when competing against China's established infrastructure and state support.

• [03:23] "There are three main stages in rare earths production: mining, processing, and refining."
• [03:46] "China accounts for up to 70% of all rare earth mining around the world."
• [04:08] "China accounts for over 90% of this highly complex process globally."

The environmental costs and health effects associated with rare earth mining are significant and multifaceted. The transcript highlights that the mining process itself is highly industrial and polluting, leading to various environmental hazards. The extraction of rare earth elements often involves dealing with radioactive materials such as thorium and uranium, which can pose serious health risks to miners and surrounding communities.

Moreover, the complexity of mining operations means that radioactive waste management is a critical concern. The presence of these hazardous materials in mining areas underscores the importance of implementing effective safety measures to protect both workers and local residents.

In addition to radioactive risks, the processes involved in mining and refining rare earth elements generate pollutants that can contaminate air and water sources, further affecting public health and environmental integrity. The transcript does not specify particular pollutants or biological risks, but the overall implications of mining practices indicate a pressing need for stringent regulations and sustainable practices in the industry.

• [05:09] "Sometimes those other materials are radioactive materials such as thorium and uranium."
• [05:14] "Radioactive waste management situation."
• [04:34] "It’s complex, highly industrial, expensive, and polluting work."

China's unique position in the rare earth market is characterized by its substantial control over the entire supply chain, which includes mining, processing, and refining. According to the transcript, China processes a staggering 87% of the world's rare earths and dominates 90% of the refining process. This dominance stems from a combination of strategic investments, state subsidies, and a long-term vision for the industry.

The monopolistic nature of China's control over rare earth elements has raised concerns globally, particularly regarding potential market disruptions. The transcript mentions that this year, China restricted the export of seven specific rare earth elements in response to trade tensions, particularly targeting the US defense sector. This move highlights the strategic leverage that China holds over countries dependent on these critical resources.

Illegal mining activities also pose a challenge, but specific details regarding the scale or impact of these activities were not mentioned in the transcript. However, the overarching narrative illustrates the significant risks and vulnerabilities associated with over-reliance on a single country for essential materials.

• [06:31] "China's dominance of rare arts has come into sharp focus this year."
• [06:36] "Beijing restricted the export of seven specific rare earth elements and related rare earth magnets."
• [06:50] "China picked metals and magnets that are important to the US economy, particularly its defense sector."

Rare earth elements play a critical role in international politics, particularly in the context of trade relations between the US, China, and Europe. The transcript highlights the strategy employed by the Trump administration to reduce dependency on Chinese rare earth elements, particularly in the defense sector. In April, China implemented export restrictions on several key rare earth elements, which the US heavily relied upon for its technological and military applications.

This geopolitical maneuvering underscores the increasing significance of rare earth elements as strategic resources. The US strategy aimed to secure alternative sources of these materials to mitigate risks associated with over-reliance on China. This approach reflects broader concerns about supply chain vulnerabilities in an era defined by trade conflict and strategic uncertainty.

The implications of this policy shift resonate within Europe as well, where companies are experiencing collateral damage from China's restrictions. European firms are increasingly questioning the reliability of China as a business partner, raising concerns about the long-term viability of their supply chains.

• [06:02] "A combination of smart long-term planning and state subsidies has given it a unique advantage."
• [06:34] "China restricted the export of seven specific rare earth elements and related rare earth magnets in response to Donald Trump's so-called liberation day tariffs."
• [07:12] "These are dual use, right? They not only have civilian applications for automakers, etc., but also they have defense applications as well."

Rare earth reserves are located in various countries across the globe, with China being the dominant player. The transcript mentions that there are approximately 100 known deposits of rare earth elements worldwide, but the specifics of where these deposits are located were not detailed. However, it is noted that China has more successful mining operations than any other country.

New players are emerging in the rare earth market, particularly in Europe. For instance, the Swedish state-owned mining company LKAB announced the discovery of Europe's largest deposit of rare earth metals in the Kiruna area. This discovery signifies a significant development in the European context, as it presents an opportunity for countries to reduce their reliance on Chinese imports.

The ongoing exploration and development of rare earth resources in Europe highlight the strategic importance of securing a stable supply chain for these critical materials. Companies like LKAB are focusing on environmentally sustainable and economically viable extraction methods, indicating a shift towards more responsible mining practices.

• [16:22] "The Swedish state-owned mining company LKAB said it had discovered Europe's largest deposit of rare earth metals in the Karuna area."
• [13:00] "The experience of companies like Tradium suggest it might be time for Europe to find its own supply."
• [17:00] "Since the breakthrough in 2023, Wilson says the goal has been to come up with a plan to make the extraction of rare earths as environmentally sustainable and economically viable as possible."

The specific elements labeled as 'critical' in the context of rare earths were not explicitly mentioned in the transcript. However, the overall discussion emphasizes the strategic importance of rare earth elements in various high-tech applications, particularly in the automotive, defense, and renewable energy sectors. The organizational structure of the global supply chains is heavily reliant on China's dominance, particularly in mining, processing, and refining.

Vulnerabilities in the supply chains arise from the concentration of production in one country, which can lead to significant disruptions in the event of geopolitical tensions, trade restrictions, or other unforeseen circumstances. China's control over the majority of the supply chain poses risks for countries that depend on these materials for their technology and defense industries.

Efforts to establish alternative supply chains in Europe and elsewhere are ongoing, but the complexities involved in developing a robust and competitive supply chain similar to China's are daunting. The transcript suggests that a comprehensive approach, including investment in research and development, is necessary to build resilience against potential supply disruptions.

• [07:34] "The most crucial piece of China's export restrictions are rare earth magnets, permanent magnets, right?"
• [08:10] "This is something that only adds to this feeling in many parts of Europe that maybe China is not as reliable, as predictable, as stable a business partner as we would need it to be."
• [18:26] "What’s really needed is sustained coordinated investment in supply chain development."

The transcript does not mention any specific alternative technologies or innovations that reduce or eliminate the need for rare earth elements. However, it does imply that there is a growing recognition of the importance of rare earths in modern technologies and the critical need to secure stable supply chains for these materials.

While some discussions around substitutes exist in the broader context of material science, the transcript does not provide detailed information about the mechanics of how such substitutes would work or their potential effectiveness in replacing rare earth elements in technological applications.

As the demand for high-tech applications continues to rise, the search for alternative materials and technologies that can complement or replace rare earth elements remains an important area of research, but specifics were not covered in this transcript.

• [16:57] "The company is confident that the deposits are there and that it has the knowhow to get them out in a way that makes economic sense."
• [22:26] "How it approaches it will tell us much about its capacity to deal with other challenges."
• [22:02] "It’s not just tons of cash that will be required, but tons of patience as well."

Details regarding the recycling of rare earth elements were not explicitly mentioned in the transcript. However, the conversation surrounding the need for sustainable practices in mining and extraction indirectly suggests that recycling could be a viable option for reducing dependency on newly mined materials.

Before initiating mining operations, a country or company must consider various economic and technical criteria. These include the cost of extraction, the purity of the rare earth elements, and the existing infrastructure for processing and refining. The transcript emphasizes the complex and expensive nature of establishing a rare earth supply chain, indicating that these factors must be carefully evaluated to ensure the viability of mining projects.

Additionally, companies must navigate the regulatory landscape, particularly concerning environmental impacts and community health, as the mining of rare earths can lead to significant public concerns. While the specifics of recycling were not discussed, it is evident that a comprehensive approach to resource management is crucial for the future of rare earth production.

• [12:17] "He says there’s no getting away from the gravity of the situation facing companies like his and its customers."
• [22:04] "If we’re daunted by that and the amount of time, it won’t happen."
• [22:10] "If we expect it to happen very fast, it won’t happen."

[00:00] This is itrium oxide. It's a rare earth
[00:03] element which has been bound with
[00:04] oxygen. But why should you care? Well,
[00:07] it's needed for quite a lot of things
[00:09] from lasers to dental ceramics to
[00:12] fighter jets. And it's one of seven rare
[00:15] earth elements which China this year has
[00:17] restricted the export of.
[00:20] This is a story about how control of
[00:22] critical resources has become a new
[00:24] front in the rivalry between China, the
[00:26] EU, and the US. It's about the merging
[00:29] of economics and geopolitics and about
[00:32] the risks of being dependent on other
[00:33] countries in an era of trade conflict
[00:36] and strategic uncertainty.
[00:38] In this episode, we speak to a European
[00:40] firm right at the heart of the global
[00:42] battle for rare earths.
[01:01] And we'll ask if Europe really can find
[01:03] its own supply.
[01:14] Welcome to Business Beyond. Before going
[01:17] any further, here's a quick guide to
[01:19] rare earths.
[01:23] So-called rare earths are a set of 17
[01:25] chemically similar elements. In the
[01:28] periodic table, they're numbers 57 to 71
[01:31] known as the lanthnide series. And
[01:34] there's numbers 21 and 39, scandium and
[01:37] itrium.
[01:40] They have a multitude of industrial and
[01:41] technological uses covering everything
[01:44] from the car industry to defense to
[01:47] healthcare.
[01:49] They are also the basis of what are
[01:51] known as rare earth magnets. They're
[01:53] alloys or mixtures of different rare
[01:55] earth elements which when combined
[01:57] produce very strong magnets known as
[02:00] permanent magnets. These two are vital
[02:03] across the broad spectrum of modern
[02:06] technology.
[02:09] Julie is a geographer at the University
[02:11] of Delaware and the author of the book
[02:14] Rare Earth Frontiers. We asked her why
[02:16] rare earths matter.
[02:18] because of their fantastic magnetic and
[02:21] conductive properties, they're used in
[02:23] just about every kind of technological
[02:24] application you can think of, right? Uh
[02:27] people are may be more familiar with uh
[02:29] their role in permanent magnets that are
[02:31] used in uh in the automotive sector as
[02:33] well as in uh renewable energy
[02:35] generation technologies, but they're
[02:37] also used in super alloys in space tech
[02:40] and aerospace and defense um
[02:43] applications. And here's the thing,
[02:45] they're not actually that rare.
[02:49] >> As this map shows, rare earths are quite
[02:51] abundant. The blue dots show areas of
[02:54] known deposits. This map shows almost
[02:58] 100 located in various places around the
[03:01] world. But what is rare are mines where
[03:04] rare arts are successfully extracted and
[03:06] processed in large quantities. We see
[03:09] these here with the red dots. And China
[03:13] has more of those than any other
[03:15] country. China's dominance of rare arts
[03:18] is key to understanding this story.
[03:21] There are three main stages in rare
[03:23] earths production. Mining, processing,
[03:25] and refining. And China dominates all
[03:28] three.
[03:30] It's complex, highly industrial,
[03:32] expensive, and polluting work. Mining
[03:35] rare earth ore involves extracting
[03:37] elements from the Earth's crust, often
[03:39] through open pit mining. According to
[03:41] various estimates, China accounts for up
[03:43] to 70% of all rare earth mining around
[03:46] the world.
[03:48] The next step is processing.
[03:51] This is the complex work of actually
[03:53] separating different rare earth elements
[03:56] from one another. And China processes
[03:59] 87% of the world's rare earths.
[04:02] Then there's refining, the purification
[04:05] process. China accounts for over 90% of
[04:08] this highly complex process globally.
[04:12] Once the rare earths are isolated and
[04:14] refined, they get towards the end use
[04:16] stage. A major role for the metals here
[04:18] is for the production of industrial
[04:20] magnets which combine certain refined
[04:22] rare earths. They are vital across the
[04:25] whole range of industrial and
[04:27] technological production. And on this,
[04:30] China is most dominant. 94% of so-called
[04:34] permanent magnets are made in China.
[04:39] Chinese supremacy is rooted in the
[04:41] complexity and cost of developing entire
[04:44] rare earth supply chains. As Julie
[04:46] Clinger explains,
[04:48] >> they are very difficult to separate one
[04:50] from the other. Remember, we're talking
[04:51] about 17 chemically similar elements,
[04:54] all of which occur in some proportion in
[04:56] each rare earth deposit that's
[04:58] identified. And they often co-occur with
[05:01] other m I mean that's just a fact of
[05:03] geology. They co-occur with other
[05:05] materials as well. Sometimes those other
[05:07] materials are radioactive materials such
[05:09] as thorium and uranium. And then you
[05:12] also have a radioactive waste management
[05:14] situation. Now another thing to keep in
[05:17] mind are the economics of this.
[05:20] >> For most companies in most countries the
[05:23] economics rarely make sense. Rare arts
[05:26] are typically needed in very small
[05:28] quantities,
[05:29] >> but the expense required to extract
[05:31] these small quantities means it's
[05:33] usually not worth the trouble.
[05:37] >> It's really hard for a single company to
[05:40] actually make a profit if they're
[05:42] producing rare earth elements because
[05:44] they're selling low volumes specialized
[05:46] applications generally fairly early on
[05:48] in the supply chain. As you move down
[05:51] the supply chain to magnet manufacturing
[05:53] or super alloy production, then the
[05:55] profit margins uh start to look a little
[05:57] bit better. For decades, Beijing eyed
[06:00] rare earth production as a strategic
[06:02] investment, a combination of smart
[06:05] long-term planning and state subsidies
[06:07] has given it a unique advantage
[06:11] >> because it's difficult to do that in a
[06:13] kind of competitive uh free market
[06:15] context. um a context where there are
[06:17] robust state subsidies in place to
[06:20] sustain this industry has proven
[06:22] absolutely vital to building a robust uh
[06:25] rare earth industry and robust rare
[06:27] earth supply chains as China has
[06:28] demonstrated.
[06:30] >> China's dominance of rare arts has come
[06:31] into sharp focus this year. Back in
[06:34] April, Beijing restricted the export of
[06:36] seven specific rare earth elements and
[06:39] related rare earth magnets in response
[06:41] to Donald Trump's so-called liberation
[06:44] day tariffs.
[06:46] China picked metals and magnets that are
[06:48] important to the US economy,
[06:50] particularly its defense sector.
[06:52] >> The most crucial piece of of China's
[06:57] export restrictions are rare earth
[06:59] magnets, permanent magnets, right? And
[07:02] the justification is that these are dual
[07:04] use, right? They not only have uh
[07:07] civilian applications for automakers,
[07:09] etc. Um but also they have uh defense
[07:12] applications as well. And this is no
[07:14] secret, right? Um you know, for the past
[07:16] 15 years, reporting on rare earth
[07:18] elements has really emphasized uh or
[07:20] reporting on rare earth magnets has
[07:22] really emphasized their importance for
[07:24] military technologies.
[07:26] >> But China's restrictions have also had a
[07:28] major impact on European companies. To
[07:31] learn more about this, we spoke to Yen's
[07:33] Escalant. He's the president of the
[07:35] European Union Chamber of Commerce in
[07:37] China.
[07:39] There are a number of companies that
[07:41] have been very severely impacted by
[07:43] these restrictions and and we do hear
[07:46] anecdotally about a few companies
[07:49] actually having had to stop the their
[07:51] production uh in Europe simply because
[07:54] of the fact that um they have run out of
[07:57] some of these minerals that they need
[07:59] for their manufacturing. While Yen's
[08:01] Escalon says that Europe is effectively
[08:03] collateral damage in a wider US China
[08:06] route, he believes the situation is
[08:08] contributing to a general sense of
[08:10] unease about the trajectory of future EU
[08:14] China relations.
[08:16] This is something that only adds to uh
[08:19] this feeling in many parts of Europe
[08:22] that maybe China is not as reliable, as
[08:25] predictable, as stable a business
[08:26] partner as we would need it to be if we
[08:29] are to retain a relationship at the very
[08:32] high level of dependency that Europe has
[08:34] right now on goods, minerals,
[08:37] intermediary goods, components coming
[08:39] from China.
[08:41] >> And another angle has recently emerged.
[08:44] Companies that want to obtain export
[08:45] licenses from China for rare earths are
[08:48] being increasingly asked by Beijing for
[08:51] sensitive data about what they use the
[08:53] rare arts for and exactly how they're
[08:56] going to use them.
[08:58] Some companies also feel uncomfortable
[09:00] about sharing uh the amount of
[09:03] information that's required because for
[09:04] some companies they feel that either
[09:06] they will have to share sensitive
[09:08] customer information or maybe uh
[09:11] insights into the production that are so
[09:13] sensitive that in essence it's about uh
[09:16] it's equivalent to giving away parts of
[09:18] your intellectual uh uh property.
[09:20] >> So what's actually going on? To better
[09:22] understand how companies are navigating
[09:24] the changed world of 2025, we've come
[09:27] here to Frankfurt to visit a company
[09:29] whose business literally is the purchase
[09:31] of rare earths.
[09:33] Behind this reinforced steel door is a
[09:36] rare earths treasure trove. This bunker
[09:39] in suburban Frankfurt belongs to
[09:41] Tradeium, a rare earths and precious
[09:43] metals trader which supplies a range of
[09:45] sectors across the globe.
[10:02] Matias Root is Tradium's managing
[10:04] director. He founded the company in 1999
[10:07] and since the late 2000s has been
[10:09] focused on rare earths and developing
[10:11] extensive commercial contacts with
[10:13] China.
[10:20] while
[10:26] flies.
[10:37] Tradium supplies a range of industries
[10:39] such as ceramics, magnets, and
[10:41] electronics, not just with rare earths,
[10:44] but also with other sought after raw
[10:46] materials such as gallium and geranium,
[10:49] also now subject to export restrictions.
[10:52] While there is some hope that the
[10:53] restrictions are gradually easing as a
[10:55] result of trade negotiations, Matias
[10:58] Ruth thinks the situation has shone a
[11:00] light on fundamental vulnerabilities.
[11:12] industry
[11:16] yet
[11:18] [Music]
[11:42] income. Um,
[11:43] >> but what about the reports of China
[11:45] seeking increasingly sensitive data from
[11:47] companies before granting them licenses?
[11:50] [Music]
[12:13] is a prize.
[12:15] >> Although Matias Routt is relatively
[12:17] optimistic that things will improve, he
[12:19] says there's no getting away from the
[12:21] gravity of the situation facing
[12:23] companies like his and its customers.
[12:28] Fore.
[12:56] The experience of companies like Tradium
[12:59] suggest it might be time for Europe to
[13:00] find its own supply, but that's not a
[13:03] new goal, and some say it's not even a
[13:05] realistic one.
[13:07] To understand a little more about the
[13:09] challenge of finding a stable European
[13:11] supply of rare earths, we visited the
[13:13] village of Stokfititz near Leipig.
[13:17] This small town in the former East
[13:19] Germany located around 2 hours south of
[13:21] Berlin is the site of what was thought
[13:24] to be a major rare arts discovery in the
[13:27] 1970s.
[13:29] Manfred Vilda has been the mayor of Dich
[13:32] which includes Shvitz since 2008.
[13:35] He told us how it was discovered that
[13:38] this quiet rural area had significant
[13:40] rare earth deposits.
[13:52] [Music]
[14:00] When the results of the drilling were
[14:02] chemically analyzed, extensive rare
[14:04] earth deposits were identified. At that
[14:07] time, though, they weren't quite the hot
[14:09] commodity they are today and had limited
[14:11] industrial uses. In the early 2010s,
[14:14] companies began to consider the
[14:16] viability of exploration and possible
[14:19] extraction of deposits right here. One
[14:22] of those companies, Stowitz Rare Earths,
[14:24] began a drilling operation.
[14:45] However, it soon became clear that going
[14:48] further did not make economic sense.
[14:50] Although rare earths are present, their
[14:53] relatively low proportion in the ore
[14:55] meant the cost involved in mining and
[14:57] processing would have been astronomical
[14:59] and all at a time when China had total
[15:02] control over market prices.
[15:06] [Music]
[15:21] So after that initial optimism, reality
[15:24] bit hard. But what does the experience
[15:26] of tell us about European efforts on the
[15:29] whole to end its reliance on China and
[15:32] find its own supply?
[15:35] Although the drills and machines are
[15:36] long gone from this quiet corner of
[15:38] Germany, Manfred Vilda is following the
[15:41] news of restrictions from China with
[15:43] interest.
[16:03] It may not have worked out here, but
[16:05] there are other places in Europe where
[16:07] optimism still prevails around a
[16:08] possible rare earth's bounty. And one of
[16:11] those places has been grabbing a lot of
[16:12] headlines in the last couple of years.
[16:16] Back in January 2023, the Swedish
[16:19] state-owned mining company LKAB said it
[16:22] had discovered Europe's largest deposit
[16:23] of rare earth metals in the Karuna area
[16:26] in Sweden's far north.
[16:29] To learn more about this and how things
[16:31] have developed since the discovery was
[16:32] announced, we spoke to Darren Wilson.
[16:34] He's LKAB's senior vice president of
[16:37] special products, which includes rare
[16:39] earths. If we start to accept as
[16:41] societies that we do need mining, we
[16:44] have a challenge in Europe in
[16:46] recognizing that after decades of
[16:48] globalization and moving manufacturing
[16:51] of things and also critical supply
[16:52] chains away from Europe, we perhaps do
[16:55] need to take greater responsibility.
[16:57] >> Back in 2018, LKAB began looking into
[17:00] the possibility of mining for rare
[17:02] earths as part of its existing mining
[17:04] operations. Since the breakthrough in
[17:07] 2023, Wilson says the goal has been to
[17:10] come up with a plan to make the
[17:11] extraction of rare earths as
[17:12] environmentally sustainable and
[17:14] economically viable as possible.
[17:16] >> We know the chemistry works, but then
[17:17] you've got to know that you can do it
[17:19] with the right operating cost and it's
[17:21] economically viable.
[17:23] >> The company is confident that the
[17:24] deposits are there and that it has the
[17:27] knowhow to get them out in a way that
[17:29] makes economic sense. But Julie Clinger,
[17:32] the rare arts expert we spoke to, is
[17:34] always cautious about these types of
[17:36] things.
[17:37] >> One thing that I've noticed is that
[17:39] every headline about a rare earth
[17:42] deposit or discovery seems to be
[17:44] announcing the world's largest uh known
[17:47] deposit, right? Uh valued in if not
[17:49] billions, then in the trillions of
[17:51] dollars. She says that when the deposits
[17:53] are indeed all that they're cracked up
[17:55] to be, the key is to develop an entire
[17:58] supply chain, as China has done, and
[18:01] that's what makes the whole operation so
[18:04] daunting.
[18:05] >> There's this perennial air of urgency
[18:09] and emergency that surrounds rare earth
[18:11] elements, which is why I think they
[18:12] continue to be called rare, even though
[18:14] they're not. there's this kind of
[18:16] imaginary that well if we can just get
[18:18] these things out of the ground then the
[18:20] supply chain will take care of itself
[18:22] but in fact um what's really needed is
[18:26] uh sustained coordinated investment in
[18:30] supply chain development
[18:33] is well aware of that challenge it has
[18:35] already invested in a Norwegian company
[18:37] to streamline a possible future
[18:39] processing operation but Darren Wilson
[18:42] says it will take a lot of time and
[18:43] patience It's complex in developing
[18:46] these supply chains and and of course if
[18:49] we want to take control of a supply
[18:51] chain you have to have yourself or with
[18:55] partners have every stage of that. So
[18:58] we've got to build a a complete European
[19:02] value chain um to make this work. The
[19:05] country that has mastered that complex
[19:07] supply chain is obviously China and
[19:09] those we spoke to were united in their
[19:12] admiration for how the country has
[19:14] conquered the market and gained a
[19:16] strategic upper hand as a result. If you
[19:20] uh look back at um globalization from
[19:23] the late 80s and early 90s, you have to
[19:26] say China has done a superb job at they
[19:29] very systematically in full sight in in
[19:32] encouragement of the west really because
[19:34] we've been wanting to not do these
[19:36] things that we used to do on
[19:37] manufacturing or mining and and and
[19:40] China has a very detailed plan
[19:44] down to all elements of of components
[19:47] and where they're
[19:49] China's dominance of the rare earth
[19:50] supply chain comes from sustained
[19:53] multi-deade investments in building
[19:55] industrial capacity in funding the
[19:57] requisite uh research and development
[20:00] and also using investments in R&D and
[20:03] rare science as a kind of international
[20:06] uh collaboration tool as well in order
[20:08] to um in order to send China's experts
[20:12] to different parts of the world. The
[20:13] fact that China has significantly
[20:17] um dominated the rare earth space really
[20:19] shouldn't come as any surprise.
[20:21] >> And that brings us to the central
[20:23] question. Can Europe realistically hope
[20:25] to catch up with China on rare earths or
[20:27] is it doomed to always play the game
[20:30] according to Beijing's rules?
[20:33] Tradeium's Matias root is skeptical.
[20:35] [Music]
[20:44] He once sat on the board of the company
[20:46] that explored for rare arts in Stofitz
[20:48] and he thinks that project embodies the
[20:50] stark reality of the challenge.
[21:08] [Music]
[21:13] But there is also the belief that as the
[21:15] century goes on, the strategic interests
[21:18] of European governments will trump all
[21:20] other concerns.
[21:22] [Music]
[21:42] I would think that there are governments
[21:44] today sitting and studying very
[21:45] carefully when that point in time comes
[21:48] where it simply becomes a strategic
[21:50] necessity to ensure that industry will
[21:53] have access uh to these minerals coming
[21:56] from somewhere us.
[21:57] >> If we are indeed approaching that point,
[22:00] it's not just tons of cash that will be
[22:02] required, but tons of patience as well.
[22:04] >> If we're daunted by that and the amount
[22:06] of time, it won't happen. If we expect
[22:10] it to happen very fast, it won't happen.
[22:14] >> Rare Earths aren't rare and to the
[22:16] untrained eye look pretty insignificant,
[22:19] but they represent a strategic conundrum
[22:21] for Europe. How it approaches it will
[22:23] tell us much about its capacity to deal
[22:26] with other challenges.
[22:28] That's all from this episode of Business
[22:30] Beyond. If you'd like to see more from
[22:31] us, I recommend you check out our recent
[22:33] video on the curious economics of this
[22:35] city, Berlin. Thanks a lot for watching.
[22:38] Until the next time, take care.
[22:48] [Music]

The escalating competition for rare earth minerals has raised critical questions about global supply chains and the dominance of China in this sector. Rare earths, essential for various technologies from smartphones to military equipment, are predominantly mined and refined in China, which currently controls nearly 90% of the global market. This monopoly has led to accusations of China weaponizing its resources, while some argue that competing nations have neglected their own mining and refining capabilities.

China's recent tightening of export controls has significantly impacted industries in Europe and the United States, prompting urgent responses such as stockpiling and seeking alternative suppliers. The European Union is particularly vulnerable, as it relies heavily on rare earths for key sectors. In contrast, the United States and Japan are actively collaborating to establish their own supply chains, including investments in refining capacities.

Experts debate whether the rest of the world can catch up with China's advancements in rare earth production and at what cost. Australia, for instance, has made significant investments in its rare earth sector, but challenges remain in processing and refining capabilities, which China currently dominates. The conversation highlights a broader issue of national security, as countries reassess their dependencies on Chinese resources amid rising geopolitical tensions.

Ultimately, the panelists suggest that while there is potential for other nations to strengthen their positions in the rare earth market, the timeline for achieving parity with China is uncertain. The interplay of technological innovation and strategic partnerships will be pivotal in reshaping the global landscape of rare earth production and supply.

The term rare earth elements (REEs) encompasses a group of 17 chemically similar metallic elements that are crucial for a variety of high-tech applications, including smartphones, electric vehicles, and defense systems. Despite their name, rare earth elements are not particularly rare in terms of abundance in the Earth's crust; rather, they are challenging to extract economically due to their dispersed nature and the complexities involved in their processing.

Rare earth minerals differ from processed metals in that they exist in a naturally occurring state within ores, requiring extensive processing to extract and purify the individual elements. This extraction process is often labor-intensive and environmentally damaging, which has led to significant concerns regarding sustainability and health implications associated with mining activities.

In the context of global supply chains, China currently dominates the market, refining approximately 90% of the world's rare earths. This monopoly is a result of decades of state planning and investment, creating a substantial gap between China and other potential producers regarding the ability to refine and produce rare earth components.

As nations worldwide seek to secure their own supplies, the understanding of the distinction between raw rare earth minerals and their processed forms becomes critical. This distinction underscores the technical expertise and infrastructure required to move from raw mineral extraction to the production of usable materials.

• [00:06] 'The rarest of rare earth minerals have become the planet's most coveted, used in everything from our smartphones to submarines.'
• [01:18] 'Even if the minerals can be mined outside of China, getting the expertise and infrastructure to refine and make the products does not come easily.'
• [01:30] 'Today, it refines nearly 90% of the world's rare earths.'

Rare earth elements are typically formed through geological processes that involve high-temperature and high-pressure conditions deep within the Earth. They are often found in igneous rocks and are associated with minerals such as monazite and bastnäsite. These elements tend to accumulate in certain geological formations due to their unique chemical properties, making them relatively easier to prospect in specific locations.

While the transcript does not specify technical developments in prospecting and mining, it highlights the significant challenges and complexities involved in refining these elements. China’s strategic investments over the past decades have led to the development of advanced extraction and processing technologies that have allowed it to dominate the market.

Furthermore, the need for sustainability in mining practices has prompted the exploration of new methods that could potentially minimize environmental impact, although specific innovations were not discussed in the transcript. As countries seek to enhance their mining capacities, understanding the geological conditions and the necessary technologies for efficient extraction becomes increasingly critical.

• [02:11] 'China doesn't just mine rare earths, it dominates the market.'
• [01:38] 'Through decades of state planning and relentless investment, Beijing has established itself as a central player in the global supply chain.'
• [02:36] 'Production lines in some automotive and tech hubs slowed as China's new rare earth export controls bit into critical inputs.'

The process of mining, extraction, and refining rare earth elements is multifaceted and involves several stages that require significant technical expertise. Initially, the mining phase involves extracting ore that contains rare earth minerals, followed by extraction, where the ore is crushed and chemically treated to separate the desired elements from the waste materials. This stage is often chemically intensive, requiring the use of hazardous substances that can pose environmental risks.

Once extracted, the next phase is refining, which transforms the raw materials into usable metals. This is where the technical complexity increases significantly, as the process involves separating individual rare earth elements, which often occur in mixtures. The transcript emphasizes that China controls around 98% of the heavy processing required for creating essential components like magnets, which are critical for various technologies.

This technical complexity, coupled with a lack of infrastructure and expertise in other countries, presents a formidable barrier to entry for nations attempting to compete in the rare earth market. The transcript suggests that even if minerals can be sourced from outside of China, the absence of necessary refining technology and capabilities is a significant hurdle for many potential competitors.

• [01:09] 'Even if the minerals can be mined outside of China, getting the expertise and infrastructure to refine and make the products does not come easily.'
• [03:01] 'The EU is now racing to adapt, boosting stockpiles, investing in refineries...'
• [07:04] '...China controls 98% of the heavy processing that goes into these magnets that are very important.'

The environmental costs associated with rare earth mining are significant and multifaceted, often encompassing severe ecological damage and health risks for workers and local residents. Mining and refining processes tend to release pollutants into the environment, which can lead to long-term degradation of ecosystems. The transcript mentions that mining activities are often dirty and hazardous, with potential health effects on miners and those living near mining operations.

Specific health risks include exposure to toxic substances used in the extraction processes, which can result in illnesses among workers and nearby populations. The discussion reflects on China's historical approach to rare earth mining, which was characterized by lax environmental regulations and practices that compromised both human health and the environment.

Moreover, the transcript highlights that the industry has faced scrutiny over the past decade, leading to the shutdown of smaller, less regulated operations in favor of larger, more controlled mining practices. This shift was aimed at reducing the environmental footprint and protecting the health of those living around mining sites. However, the legacy of pollution and health issues persists, indicating a complex challenge that ongoing and future mining operations must address.

• [05:27] 'For years, China invested in this industry at huge cost, not just financial but environmental...'
• [06:11] 'They shut down these small mines that were being run by individuals.'
• [06:36] 'It's a security issue.'

China holds a unique and dominant position in the rare earth market, having established itself as a key player through extensive state planning and investment over several decades. The transcript notes that China refines nearly 90% of the world's rare earths and has been accused of monopolizing the market and using its control as a form of leverage against competing nations. This has raised concerns regarding the potential for China to disrupt global supply chains.

The discussion also touches upon the issue of illegal mining activities, which have been a persistent problem in the rare earth sector. While the transcript does not provide specific details regarding the scale or impact of illegal mining, it underscores the challenges faced by countries trying to establish a foothold in this market, particularly in light of China's stringent export controls. These restrictions serve to tighten China's grip on the global supply chain, reinforcing its strategic advantages.

In essence, the monopolistic tendencies exhibited by China not only impact economic relations but also raise national security concerns among other countries that rely on these critical minerals for various technologies and defense applications. As nations seek to secure alternative sources, understanding China's market dynamics becomes essential for navigating future geopolitical landscapes.

• [01:24] 'China doesn't just mine rare earths, it dominates the market.'
• [01:38] 'Today, it refines nearly 90% of the world's rare earths.'
• [02:30] 'While Beijing calls it regulation, its competitors call it leverage.'

Rare earth elements have emerged as critical components in international politics, particularly as nations strive to reduce dependency on Chinese supplies. The transcript highlights the US strategy under the Trump administration, which involved a proactive approach to securing alternative sources of rare earths and critical minerals. This included a framework for cooperation with Japan to enhance joint investments, refining capacities, and shared reserves within six months.

The urgency for this strategic pivot is underscored by the realization that dependence on China poses significant risks to national security and technological advancement. The transcript illustrates how the US and Europe are racing to adapt, investing in stockpiles and refineries, while seeking new trade partners to diversify their supply chains and reduce reliance on Chinese production.

Moreover, the discussions around the geopolitical implications of rare earths suggest that the race for control of these resources is not merely an economic issue but also a matter of maintaining competitive advantages in global markets. As nations look to rebuild supply chains beyond China's reach, the role of rare earth elements in shaping international relations and national strategies will continue to grow in importance.

• [03:41] 'Washington and Tokyo are already charting theirs.'
• [04:20] 'The agreement forms part of Japan's $550 billion investment in the US economy.'
• [05:00] 'At what cost can the rest of the world catch up to China when it comes to rare earth's production?'

The transcript highlights several countries where rare earth reserves are located, primarily focusing on China, which is the predominant player in the market. However, it suggests that other nations are also seeking to establish themselves as significant contributors to the global supply of rare earths. Australia is mentioned as a key player, with a $3 billion investment in the sector aimed at enhancing its mining and processing capabilities.

In addition to Australia, the transcript hints at Japan and the United States forming cooperative agreements to bolster their positions in the rare earth market. This collaboration is framed as a strategic response to reduce dependency on China and secure critical resources for various applications, including military and industrial needs.

While specific new players were not identified, the transcript indicates that countries like Canada are also vying for a competitive position in the rare earth landscape. The ongoing investments and initiatives from these nations signal a shift towards greater diversification in the sources of rare earth elements, reflecting the urgency for countries to address the vulnerabilities associated with reliance on China.

• [03:40] 'As nations rush to rebuild supply chains, control of these elements defines the new global order.'
• [04:20] 'The agreement forms part of Japan's $550 billion investment in the US economy.'
• [11:00] 'The world outsourced the dirt and China kept the power.'

The elements classified as 'critical' in the context of rare earths typically include those necessary for advanced technologies and military applications. While the transcript does not provide a specific list of critical elements, it emphasizes the importance of rare earths in manufacturing components for technologies like electric vehicles, semiconductors, and military equipment.

The organizational structure of the global supply chain for these elements is heavily influenced by China's dominance in the market, which controls almost all the refining and processing stages. This concentration creates vulnerabilities for countries dependent on these resources, as any disruptions in China's supply chain can have cascading effects on global industries.

Moreover, the increasing geopolitical tensions surrounding rare earths highlight the need for countries to reassess their supply chains and seek alternative sources to mitigate risks associated with over-reliance on a single nation. The discussions in the transcript reflect an urgent call for nations to diversify their supply chains and enhance their resilience against potential market disruptions.

• [01:30] 'Today, it refines nearly 90% of the world's rare earths.'
• [02:33] 'China's implementation of export controls is a legitimate practice to refine the export control system.'
• [06:19] 'The decisions announced by the Chinese government pose a significant risk.'

The transcript does not provide detailed information regarding alternative technologies or innovations that reduce or eliminate the need for rare earth elements. However, it does allude to the potential for innovation in response to the scarcity of these materials. For instance, it mentions that when certain inputs become scarce, industries often adapt and develop substitutes.

This notion indicates that while current technologies may rely heavily on rare earths, there is a possibility for future advancements to create alternatives that do not depend on these elements. The transcript refers to instances of innovation in sectors like AI, where developments have occurred despite the absence of critical components.

While no specific technologies were outlined, the discussion around the need for innovation suggests that industries might be incentivized to explore alternative materials and methods as geopolitical tensions and supply chain vulnerabilities increase. This evolving landscape underscores the importance of research and development to ensure long-term sustainability in technology without over-reliance on rare earth elements.

• [11:00] 'Innovation does tend to overcome some of these shortages.'
• [10:56] 'The need for these supplies and the current technology might not be guaranteed in the longer term.'
• [11:42] 'China will have to know and will figure out how to do this artfully.'

The transcript does not contain specific information regarding the recycling of rare earth elements. It primarily discusses the mining, extraction, and refining processes, along with the geopolitical implications surrounding these materials. However, the need for sustainable practices in the mining industry is implicitly suggested through the discussions on environmental costs and health effects associated with mining activities.

When considering the initiation of mining operations, countries or companies must weigh several economic and technical criteria. These may include the costs associated with extraction and processing, the availability of technology and infrastructure, and the regulatory environment governing environmental safety standards.

Additionally, companies must assess market demand for rare earth elements and the potential return on investment. Given China's substantial control over the market, understanding the competitive landscape and developing strategies to mitigate risks associated with dependency on a single source will also be essential for any nation or company looking to enter the rare earth market.

• [01:43] 'With each new restriction, that control tightens.'
• [03:29] 'The EU is now racing to adapt, boosting stockpiles, investing in refineries.'
• [04:29] 'The world outsourced the dirt and China kept the power.'

[00:00] As the [music] battle for rare earths
[00:02] escalates, can anyone compete with
[00:04] China? The rarest of rare earth minerals
[00:07] have become the planet's most [music]
[00:08] coveted, used in everything from our
[00:11] smartphones to submarines. But with
[00:13] China arguably decades ahead in the
[00:15] manufacturing of crucial rare earth
[00:17] magnets, can competitors [music]
[00:19] really catch up and at what cost?
[00:23] I'm Andrea Seni and this is the
[00:25] Newsmakers.
[00:41] Now, while some accuse China of
[00:43] monopolizing, even weaponizing its
[00:45] mining and refining of critical rare
[00:47] earth minerals, others argue competing
[00:50] powers only have themselves to blame.
[00:52] For decades, China did the dirty,
[00:54] cost-intensive work of mining and
[00:57] producing the rare earth products used
[00:59] in everything from vehicle motors to TVs
[01:02] and fighter jets. Wealthy nations around
[01:04] the world were happy to rely on Chinese
[01:06] supplies until now. But the problem is,
[01:09] even if the minerals can be mined
[01:11] outside of China, getting the expertise
[01:14] and infrastructure to refine and make
[01:16] the products does not come easily.
[01:18] Here's a look.
[01:21] China doesn't just mine rare earths, it
[01:24] dominates the market. Through decades of
[01:27] state planning and relentless
[01:28] investment, Beijing has established
[01:30] itself as a central player in the global
[01:33] supply chain, and it's now rewriting the
[01:35] rules that govern it. Today, it
[01:38] refineses nearly 90% of the world's rare
[01:40] earths. And with each new restriction,
[01:43] that control tightens. This month,
[01:46] Beijing [music] tightened export curbs
[01:48] once more, proving that control of
[01:50] supply chains is control of progress.
[01:56] >> Rare earths and related items possess
[01:58] distinct dual use attributes of military
[02:01] and civilian purposes. China's
[02:03] implementation of export controls is a
[02:06] legitimate practice to refine the export
[02:08] control system, safeguard national
[02:10] security and interests, and fulfill
[02:12] international obligations. The recent
[02:15] rare earth export control measures
[02:17] represent the Chinese government's
[02:19] lawful refinement of its export control
[02:21] system and are not targeted at specific
[02:24] countries or regions. [music]
[02:27] >> While Beijing calls it regulation, its
[02:30] competitors call it leverage. Within
[02:33] days, the impact was felt in Europe.
[02:36] Production lines in some automotive and
[02:38] tech hubs slowed as China's new rare
[02:41] earth export controls bit into critical
[02:44] inputs.
[02:45] >> In recent weeks and months, China has
[02:48] dramatically tightened export controls
[02:52] over rare earth and battery materials.
[02:56] At least to some extent, this is part of
[02:59] wider economic friction between China
[03:01] and the United States. But it has a huge
[03:03] impact [music] on us here in the
[03:05] European Union.
[03:08] We all know how important rare earths
[03:10] are for our industry, whether for cars,
[03:14] semiconductors, or military equipment.
[03:18] The decisions announced by the Chinese
[03:20] government on October 9th poses a
[03:23] significant risk. The EU is now racing
[03:26] to adapt, boosting stockpiles, investing
[03:29] in refineries, and seeking new trade
[03:32] partners. But decades of lost capacity
[03:36] won't return overnight. And while Europe
[03:38] looks for alternatives, Washington and
[03:41] Tokyo are already charting theirs. In
[03:45] Tokyo, President Donald Trump and Prime
[03:48] Minister Sanay Takichi signed a new
[03:50] framework on rare earths and critical
[03:52] minerals, committing to joint
[03:54] investment, new refining capacity, and
[03:58] shared reserves within 6 months, aimed
[04:01] at rebuilding supply chains beyond
[04:03] China's reach. Uh we're just signing a
[04:06] new deal and it's a very fair deal and
[04:09] we look forward to welcoming Japan into
[04:12] the United States and a continuation and
[04:15] it's something that everybody is very
[04:17] very excited about. The agreement forms
[04:20] part of Japan's $550 billion investment
[04:24] in the US economy and comes just days
[04:27] before Trump's meeting [music] with
[04:29] Xiinping at the Apex summit in South
[04:32] Korea where rare earths and tariffs are
[04:35] expected to dominate the talks. The
[04:38] world outsourced the dirt and China kept
[04:42] the power. Now, as nations rush to
[04:46] rebuild supply chains, control of these
[04:48] elements defines the new global order,
[04:51] one China shaped long before the race
[04:55] began.
[04:56] >> So, at what cost can the rest of the
[04:58] world catch up to China when it comes to
[05:00] rare earth's production, and is it worth
[05:02] it? Joining me now to debate that and
[05:04] more are from Perth, Australia,
[05:06] professor of sustainability at Curtain
[05:08] University, Peter Newman. From London,
[05:11] financial journalist Lorie Leard. And
[05:13] from Beijing, senior fellow at the Tah
[05:16] Institute, Inar Tangen. Thanks all so
[05:18] much for being with me. Anar, I'll start
[05:19] with you in China because for years,
[05:22] China invested in this industry at at
[05:25] huge cost, not just financial but
[05:27] environmental
[05:29] uh even many argue at at a human cost as
[05:32] well because many people around the
[05:33] mines uh and refining got got sick. So,
[05:36] does China now deserve
[05:40] this what some call strategic control of
[05:43] supply and has it been worth it for
[05:45] China?
[05:46] >> Well, when you say deserve, I I think
[05:48] that's a little uh you know, hard to
[05:50] quantify. I mean, what they did is they
[05:51] made investments and early on it was an
[05:54] extremely dirty, hazardous business as
[05:56] you put out. But starting about 10 years
[05:59] ago, uh China changed all that. They
[06:02] shut down these small mines that were
[06:04] being run by individuals. They
[06:06] consolidated and they put a tremendous
[06:08] amount of money and effort into creating
[06:11] the technology to process uh these rare
[06:16] earth elements into usable uh materials.
[06:19] And that's really what we're talking
[06:21] about. China is not trying to shut off
[06:24] the world uh in terms of advancement or
[06:27] it's it's one of the prime movers in
[06:29] terms of the environment. What they're
[06:31] really trying to do is make sure that
[06:34] people aren't making weapons that are
[06:37] going to be used against China with
[06:39] their rare earths.
[06:41] >> H Let me just ask you quickly though
[06:43] because some accuse China of breaking
[06:45] WTO rules in the process by investing to
[06:51] the point of subsidizing unfairly these
[06:53] industries so that no one could be
[06:54] Costco competitive.
[06:57] >> Well, I I don't think that's true. um
[07:00] they where they subsidized heavily was
[07:03] in the technology. Now any any country
[07:06] could have done that in the United
[07:08] States uh until Donald Trump uh the vast
[07:11] majority of investment or funding for
[07:16] any kind of research through the
[07:18] universities funded by the US
[07:20] government. That's why you're having all
[07:21] these lawsuits against Harvard etc etc
[07:25] what taking away $60 billion.
[07:28] So it is a game that everybody plays.
[07:31] You want to be on top. You want to have
[07:33] innovation. Um and generally it's the
[07:36] government that puts that in. So you
[07:38] have situations in Europe where they're
[07:39] investing in all sorts of things. It
[07:41] hasn't been as productive as China. Uh
[07:43] the US has put a tremendous amount of
[07:46] money. The internet never made money for
[07:48] years. It was controlled by the
[07:49] government. So I think this rings a
[07:51] little bit hollow. Just quickly though,
[07:52] would China even be restricting any of
[07:54] this supply if it weren't for Trump or
[07:58] would that have come anyway?
[08:00] >> No, I think it really has come to a head
[08:03] with Trump. Uh but they also realize I
[08:05] mean when when you have a country that
[08:07] asks Australia,
[08:09] um Japan, Philippines, and also South uh
[08:13] South uh Korea whether they would go to
[08:16] war over uh Taiwan. uh and they have a
[08:19] white paper identifying you as an enemy
[08:21] and they have 400 bases around you. I I
[08:24] think you at some point you have to come
[08:26] to the realization that you do not want
[08:28] to provide the bullets or in this case
[08:31] the bombs uh and missiles that would be
[08:34] used against you and I think that would
[08:35] be a prudent thing for any government.
[08:38] Okay,
[08:38] >> it's that is truly a security issue.
[08:41] >> Let me ask Lori that question then. I
[08:42] mean, is China only doing what the US
[08:44] and any other country would do if it had
[08:48] this same kind of strategic supply,
[08:51] especially in its own national security
[08:53] interest?
[08:55] >> Well, the US and Europe have really it's
[08:57] it's sort of a a paradoxical situation
[09:00] here. Until very recently, the US was
[09:03] pursuing a a a semi-green agenda,
[09:05] perhaps less actively than Europe has
[09:08] been. But it it worked out quite nicely
[09:10] to subcontract some of this dirty
[09:13] business, the dirty mining of elements
[09:15] that are key in the energy transition,
[09:17] some of these rare earths. Uh and and
[09:19] these these these minerals aren't
[09:21] necessarily rare. They're all over the
[09:24] place. But it has suited the West to let
[09:26] China mine and process them. But it's a
[09:29] dirty business. Yet they're coming up
[09:31] with these elements that are crucial in
[09:34] making electric vehicles and making wind
[09:36] turbines. So I think everybody was
[09:39] complicit in allowing this bottleneck to
[09:42] happen. I think we've had a long period
[09:45] of prosperity. We forgot that wars
[09:47] happen for a little bit at least until
[09:49] 2022. And I don't think countries looked
[09:53] very strongly at bottlenecks, potential
[09:55] bottlenecks. We didn't learn a whole lot
[09:57] from co we had a situation where Germany
[09:59] was so reliant on Russia for for cheap
[10:03] energy and and and so reliant on China
[10:06] for its export market. We have another
[10:08] bottleneck. Um I'm digressing in a
[10:10] moment but I think it's important we
[10:12] talk so much about this this strangle
[10:14] hold China has over rare earth. It also
[10:16] has a strangle hold in pharmaceuticals.
[10:19] So many of the components that go into
[10:22] everyday pharmaceuticals that are that
[10:24] are needed all across America and other
[10:26] points in the west are sourced from
[10:29] China. So there are many of these um in
[10:32] imbalances that have been developing
[10:34] over the past couple of decades.
[10:36] >> Right. So I mean Lori, I mean do you
[10:38] think there's a real chance now then for
[10:40] the United States and and Europe to
[10:42] whatever extent to catch up? Uh because
[10:46] I mean also there's the issue that the
[10:48] need for these supplies and the current
[10:50] technology might not be guaranteed in
[10:54] the longer term. We might phase out this
[10:56] technology that requires rare earths for
[10:59] something else.
[11:00] A
[11:01] >> and that's the interesting question
[11:03] isn't it? Because China has a lot of
[11:06] leverage here. America and Europe have
[11:08] talked about different ways of trying to
[11:10] to gain more of these rarers to
[11:13] stockpile these rare earths. It's not
[11:14] something that can happen next week. But
[11:18] you're absolutely right. We have seen
[11:20] when things are scarce, we have seen
[11:22] innovation. Look at Chinese AI deep.
[11:26] Look at DeepSeek, which was an AI system
[11:28] that was developed without these really
[11:31] wizzy chips that America has been
[11:33] withholding from China. So, innovation
[11:35] does tend to overcome some of these
[11:37] shortages. It does take some time. It
[11:40] gives China leverage. China will have to
[11:42] know and will figure out how to do this
[11:45] artfully, how to withhold just the right
[11:48] amount that doesn't encourage that
[11:50] innovation to, you're right, sort of
[11:52] skip over some of the stages that
[11:54] require these rarests.
[11:55] >> Okay. So, Peter, I mean, having heard
[11:58] that, we now have Australia boasting
[12:00] this $3 billion investment in the
[12:03] sector. It's cooperating with the United
[12:04] States. Is it really economically and
[12:08] environmentally beneficial for for
[12:11] Australia for this point? Or do you fear
[12:13] that maybe it's too far behind to get
[12:15] the production side of the value chain
[12:18] in action in Australia?
[12:23] No, it's not far behind because we've
[12:26] been producing minerals and critical
[12:28] minerals and rare earths uh in this
[12:32] state that I live in as part of
[12:34] Australia uh for a long time. In the
[12:37] last eight years, we put together a
[12:40] report to try and show that the world
[12:43] was changing to get more uh need for
[12:48] them for these critical minerals and
[12:50] rare earths because of the energy
[12:53] transition. That was going to become a
[12:55] mainstream thing. It would not be just a
[12:58] small boutique operation like we were
[13:01] doing. But China has been investing in
[13:03] our mining industry and taking the
[13:06] product, dig it up and ship it out and
[13:09] we would give it to them and they'd make
[13:11] all the money out of processing and
[13:12] controlling the market. So that blockade
[13:15] of the market meant that we were never
[13:17] able to develop the industries to
[13:20] process and provide them to a bigger
[13:23] global market. That will now change. we
[13:27] now have an opportunity with the uh
[13:31] American money and the American
[13:33] interventions that they're doing to try
[13:36] and open up that market. And I believe
[13:39] that the world will need it because
[13:42] China wouldn't have been able to provide
[13:44] it all. We've got a a a crustal element
[13:48] that enables it to be cheaply produced.
[13:52] It is sitting on the surface. uh you
[13:55] remember that they were talking about uh
[13:58] giving critical minerals to America from
[14:03] Ukraine
[14:04] they were 50 meters underneath the
[14:09] >> the surface
[14:10] >> oils of agriculture that they have which
[14:12] we don't so it is a new era that's
[14:15] starting and I think the Australian
[14:19] minerals will provide and will we will
[14:22] together process them and make available
[14:25] on the world market.
[14:27] >> Okay, judging from your facial
[14:29] expressions, you seem to doubt that.
[14:33] >> Well, okay. Um, I've talked to experts
[14:35] in the industry and I've done my
[14:36] research and it would take five to seven
[14:38] years
[14:40] just to answer the critical needs of the
[14:42] defense industry. Um and it would take
[14:45] 10 to 15 years assuming uh China stands
[14:48] still uh to get some sort of parody in
[14:51] terms of production not price just in
[14:54] terms of production uh in in terms of
[14:57] being able to supply what is necessary
[14:59] outside of China. So I mean it's it's
[15:02] kind of a it's nice. I like the
[15:05] boosterism uh for Australia. You
[15:08] certainly have the rare earths there.
[15:10] They're easy to get at, cheap to mine,
[15:12] but that does not mean you know how to
[15:14] process them. And as you as I'm sure
[15:18] even as an environmentalist, I think you
[15:20] know that uh there are four parts to uh
[15:23] this whole uh area. One is the
[15:25] collection. The second is to
[15:28] differentiate all the uh products I mean
[15:30] all the minerals separate ones and put
[15:33] them into different areas. Then you have
[15:35] the light processing and the heavy
[15:36] processing. China controls 98% of the
[15:40] heavy processing that goes into the
[15:42] these magnets that are very important.
[15:44] Now, Australia doesn't have that. You're
[15:46] starting uh you're certainly in the most
[15:49] in the second position in terms of doing
[15:52] this, but you're a long ways away when
[15:54] you start looking at the figures in
[15:56] terms of doing it. And three billion,
[15:58] I'm sorry to say, is a drop in the
[16:00] bucket compared to what's going to be
[16:01] necessary to bring this up. And it's
[16:03] going to take time. uh you don't have
[16:05] the processing technology now and it's
[16:08] going to take time to do that and I do
[16:10] think that China will
[16:12] >> slow play this as you mentioned
[16:14] >> but uh Peter quickly and please I mean
[16:17] if you think that's untrue you can go
[16:18] ahead and say so but there's also the
[16:19] issue of the critical skills in
[16:22] engineering for example that many say
[16:24] Australia and the US for that matter are
[16:27] missing China has been training the
[16:29] right kind of engineers and skills base
[16:31] while the US Australia and Europe have
[16:33] not Do you believe you have the
[16:35] technical skills and all the rest that
[16:38] was describing in Australia to do this?
[16:44] >> I think needs to come out to Australia
[16:46] and have a look. You'll see that there
[16:48] is already a rare earth uh processing
[16:51] plant in Calguli and that is operating.
[16:55] Uh we have lots of other processing
[16:58] plants for the critical minerals and for
[17:02] things like nickel and cobalt. They are
[17:05] operating now. I have been to them. They
[17:07] are working well. They are highly
[17:11] uh technologically sophisticated because
[17:15] um we can't compete on on labor markets
[17:19] with China but we can compete on
[17:22] technology. We are a mining state that's
[17:24] very wealthy because we actually do
[17:27] something with these mines. We don't
[17:29] just dig it up and ship it out any
[17:31] longer. And uh I I think it's you're
[17:33] getting the wrong information there. Uh
[17:36] we will be competitive because we have
[17:39] the technology, we have the training, we
[17:43] have the commitments now and we've now
[17:45] got the money to process more of this.
[17:50] We do certainly have started that. Let
[17:52] let me get Lor's opinion here. I mean
[17:54] Lori, should China feel threatened not
[17:56] just by this Australia US cooperation
[17:59] but also by this US Japan cooperation as
[18:02] well on the rare earth front?
[18:05] >> Before we get to that, Andre, if you
[18:07] don't mind, Peter, do you mind if I ask
[18:09] um you mentioned that that the
[18:10] technological expertise in Australia, do
[18:13] you have the labor supply? Do you have
[18:15] sufficient labor that's willing to work
[18:18] uh at at at at a cost that's reasonable
[18:21] to mine this stuff to process this
[18:23] stuff? Because certainly uh going back
[18:25] to one of your earlier points, Andrea,
[18:27] this will be an issue in the US. I mean,
[18:30] the US is trying to accelerate uh the,
[18:33] you know, opening of mines,
[18:35] identification of of reserves, uh
[18:37] opening of mines, looking at processing.
[18:39] But there's a real big question of who
[18:41] is going to staff this stuff. I have
[18:44] young adult working age kids. They don't
[18:46] want to mine. You know, this is not
[18:48] considered a career uh that it was
[18:51] generations ago in in Western countries.
[18:53] So, do you have the labor supply?
[18:58] >> I'm at Curtain University. We have a
[19:00] very big minerals uh and mining
[19:05] component and hundreds of people come
[19:07] from around the world to study here, do
[19:09] masters and PhDs and to get jobs here
[19:12] because there is plenty of jobs around.
[19:15] This is not the problem that we have.
[19:19] It's a myth that somehow or other
[19:21] Australia are dunderheads that don't do
[19:23] this sort of thing. We do and our whole
[19:27] economy is based around this and we are
[19:31] not going to go away and can laugh but
[19:34] it's not true what you're being fed
[19:37] about the fact that we will be providing
[19:41] a very large proportion of the world's
[19:43] critical minerals and rare earths in the
[19:46] future because we now will be able to
[19:49] process and make them available very
[19:52] cheaply because of the technology.
[19:54] technology and the expertise that we
[19:56] have.
[19:56] >> Okay, Inar, I can see you're still
[19:58] skeptical, but let's look forward then
[20:01] if we can because we have presidents
[20:03] Trump and she meeting in the coming
[20:06] days. How do you think they're going to
[20:08] approach this together? Will they find
[20:10] some symmetry here? Because the way it
[20:13] sounds on this panel at least, there's
[20:15] uh a lot of room for confrontation and
[20:17] disagreement.
[20:19] >> Okay. Uh first uh I was not I was
[20:22] laughing because I'm I'm quite close to
[20:24] Australia. The two two previous
[20:26] ambassadors uh have been close friends.
[20:29] I do believe Australia is very good in
[20:31] minerals and I think that they
[20:32] eventually will get there. In terms of
[20:35] cost, no, in terms of ramping up
[20:37] technology and the kind of scale that
[20:39] we're talking about, I think Peter that
[20:41] you're uh glossing over quite a bit. I
[20:44] know you're very proud of your area, but
[20:46] that does not pride does not equal uh
[20:48] action and results. So in terms of Xi
[20:51] Jinping and also uh
[20:55] >> it's on the ground.
[20:56] >> It's in terms
[20:58] Thank you. Uh in terms of Xi Jinping and
[21:00] Donald Trump, uh you can expect to be a
[21:04] um very cautious approach. As I said at
[21:07] the very beginning, uh no country wants
[21:09] to arm another country that is going to
[21:11] attack it. So I think what you'll see
[21:14] here is it's going to be made very clear
[21:15] that for commercial pro processes and
[21:18] even maybe dual use processes uh it will
[21:21] be easy to get rare earth as long as
[21:24] it's clear that they're not being
[21:26] diverted to military use. But for purely
[21:29] military use, I just cannot believe that
[21:32] the Chinese would be willing to arm uh
[21:35] the US in its numerous wars and its
[21:38] threats against it um so that they could
[21:41] in fact carry through those threats. So
[21:44] yes, it's a it's a matter of national
[21:46] security for the Chinese to go very
[21:48] slow. Uh they talking about a one-year
[21:51] trial period. Um they've talked about
[21:54] auditing. uh they've said to close
[21:56] allies like Pakistan, look we're not
[21:58] going to sell you rare earths if we
[22:01] think you are selling those to other uh
[22:04] parties. Uh obviously there is still a
[22:07] small percentage of rare earths that are
[22:09] out there. A lot of it's made in um
[22:11] Australia, not all of it. Uh there are
[22:14] other areas. Canada is vying for this as
[22:17] you also heard. Japan is as well. Um
[22:20] everyone's going to be talking about it.
[22:21] It's going to be an area of interest,
[22:23] but to get it done takes a lot of time
[22:25] planning. Uh you have to have the right
[22:28] pricing
[22:29] >> because in the end, if you're going up
[22:30] against China commercially, it's going
[22:32] to be tough.
[22:32] >> Okay. Let me get Lor's take on how much
[22:35] leverage you think each man has going
[22:38] into this uh Trump she meeting when it
[22:41] comes to rare earths. Go ahead.
[22:44] >> That that's the big question, isn't it?
[22:46] And I think that the US seems to have
[22:49] underestimated the strength of its
[22:51] position. We have heard Donald Trump say
[22:54] famously to Vladimir Zalinski in the
[22:56] Oval Office, you don't have the cards.
[22:59] I'm not sure America realized how weak
[23:02] its hand is as well. I think the US in
[23:05] designing its trade policy thought,
[23:07] okay, we buy a lot of goods, a lot of
[23:10] goods from China, many, many more than
[23:13] we sell to China. Therefore, they're
[23:15] depend more dependent on us than we are
[23:18] on them. What what doesn't seem to have
[23:21] been considered is the the composition
[23:24] of trade. So, the stuff that America
[23:26] sends to China is things like soybeans.
[23:29] America sends more soybeans in value
[23:31] terms than it does aircraft engines.
[23:33] Soybeans are funible. China can buy
[23:35] soybeans from Argentina from Brazil and
[23:38] it has been doing that where the sort of
[23:41] stuff that China is sending to the US
[23:43] isn't so easily substituted like rare
[23:46] earth. So this um the balance the
[23:51] consideration of this trade war but in
[23:53] Washington I don't think um looked much
[23:56] below the surface and at the moment I
[23:58] think Xiinping and China have a much
[24:00] much better um sense of leverage and
[24:03] that's again before even talking about
[24:05] where these other strangle holds are
[24:07] like pharmaceuticals. Okay, Peter, one
[24:10] minute on your thoughts for the she
[24:13] meeting here and who has the leverage
[24:15] over whom.
[24:19] >> Well, I think we have often
[24:22] underestimated Trump and I certainly
[24:24] have myself. But on this critical
[24:26] minerals deal, there is very significant
[24:31] potential to unblock the blockade that
[24:35] China has had. And this may h may hurt
[24:39] but it is better for the world. It is
[24:41] better for the net zero agenda because
[24:44] we need these critical minerals for
[24:47] solar, batteries, electric vehicles and
[24:49] all of the smarts that is needed to make
[24:52] it all happen. uh I'm not worried about
[24:55] the defense side of it and maybe that is
[24:58] a a small part of the market but the big
[25:01] market is for doing the energy
[25:05] transition and that is going to be made
[25:08] available so much more now because of
[25:12] the unblocking of this blockade.
[25:14] >> Okay, Peter Newman, that will have to be
[25:17] the final word for this edition of the
[25:18] newsmakers. I'd like to thank sincerely
[25:20] all three of my panelists so much for
[25:22] being with me and our viewers for
[25:24] joining us as well. Remember, you can
[25:26] follow us on social media and do be sure
[25:27] to subscribe to our YouTube channel. I'm
[25:29] Andrea. Thank you. We'll see you next
[25:30] time.
[25:34] [music]
[25:45] Heat. Heat.
[25:49] [music]
[25:56] [music]