Rare earths: The forgotten foundation of the green economy

When we think of the global economic transition from fossil fuels to renewables, we often think of electric vehicles (EVs) and lithium-ion batteries. These batteries are incredibly important; however, even more so are rare earth permanent magnets. Without them, the global net zero transition is simply not feasible.

Rare earth magnets permeate our homes and offices. They can be found in numerous vehicles, such as trains, buses, and cars. If the latter is taken in isolation, 66 rare earth magnets are required to construct a modern EV. Additionally, they are present in a range of consumer technologies: mobile phone speakers and charger cable ports, to list but two examples.

They are also a prerequisite for establishing the greener, more technological future we all wish to see. The wind turbines that contribute toward a supply of renewable power and the satellites that assist with information sharing are both formed of rare earth magnets.

Funding barriers to rare earth magnet projects

In spite of the fact that rare earth magnets are integral to almost every aspect of modern life, many people still conceptualise magnets as those found on their fridges. Thus, the importance of rare earth magnets is difficult to articulate.

Despite their importance to the creation of the green economy, the difficulty of explaining this to voters has reduced their funding compared to other critical minerals.

Subsequently, UK State funding does not favour rare earth magnets. The Automotive Transformation Fund has been granted over £750m to build a gigafactory economy in the UK.

By comparison, the rare earth magnet focused Driving the Electric Revolution has only been granted £80m.

A further barrier to increased state funding for rare earth magnet projects is that rare earths, 17 of which are clustered together on the periodic table, have highly complex, opaque, and volatile supply chains.

Ironically, rare earths are not particularly rare either. They can be found across the globe. The reason for their somewhat puzzling name stems from the fact that they are rarely found in enough abundance to make them economically viable to mine.

China’s control of the global rare earth supply

What is most troubling for many is that the processing and refining of rare earths are monopolised by one nation. Figures from the International Energy Agency (IEA) show that China accounts for 60% of rare earth production,1 87% of processing, and 92% of magnet production.

China now effectively controls rare earth supply globally. The Chinese Communist Party (CCP) has been increasingly willing to invoke this control in bilateral and multilateral fora, employing rare earths as a tool of economic statecraft.

Source:innovationnewsnetwork.com

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