New Study Highlights a Path Beyond China’s Rare Earth Processing Monopoly-But Scale-Up Risks Remain

Dec 26, 2025

Highlights

  • A 2026 peer-reviewed study finds liquid membrane systems can selectively recover rare earths from wastewater and e-waste using less energy and chemicals than conventional methods, with polymer inclusion membranes showing the most practical potential.
  • The research highlights that processing technologyโ€”not geologyโ€”is the true bottleneck in rare earth supply, offering countries like Malaysia a pathway to build localized capacity without replicating China's environmentally intensive model.
  • Despite promising laboratory results, significant scale-up challenges, membrane stability issues, and unproven cost competitiveness mean liquid membrane technologies remain years away from challenging China's industrial dominance.

A new peer-reviewed mini-review published in the Journal of Water Process Engineering (January 2026) by Wan Aisyah Fadilah Wae AbdulKadir, together with Rohayu Che Omar and Mohd Hazarel Zairy Mohd Harun, examines whether liquid membrane (LM) technologies could provide a cleaner and more selective alternative to conventional rare earth element (REE) processingโ€”particularly in Southeast Asia.

Drawing on global case studies and a Malaysia-focused assessment, the authors conclude that LM systems show real promise for recovering REEs from wastewater, mine residues, and electronic waste while reducing chemical use and environmental harm. At the same time, the study delivers a sobering message: despite encouraging laboratory results, significant technical and economic barriers remain before these methods could meaningfully challenge Chinaโ€™s near-monopoly in industrial-scale REE separation.

The authors are affiliated with Universiti Tenaga Nasional (UNITEN) and Universiti Teknikal Malaysia Melaka.

What the Study Examined

Rather than conducting new experiments, the authors performed a systematic mini-review of recent scientific literature on liquid membrane technologies for REE recovery. They compared three main LM configurations:

  • Supported Liquid Membranes (SLMs)
  • Emulsion Liquid Membranes (ELMs)
  • Polymer Inclusion Membranes (PIMs)

These systems combine solvent extraction with membrane separation. In simple terms, a specially designed โ€œcarrierโ€ molecule selectively binds rare earth ions in contaminated water, transports them across a membrane barrier, and releases them into a clean solution where they can be recovered. The review evaluated each approach based on selectivity, durability, energy use, chemical consumption, andโ€”criticallyโ€”their suitability for real industrial wastewater rather than idealized laboratory conditions.

Key Findings: A Technical Opening in a Locked Market

The study finds that liquid membrane systems can selectively recover rare earths using less energy and fewer chemicals than traditional solvent extraction, particularly when dealing with dilute or complex waste streams such as acid mine drainage or electronic-waste leachates. Among the LM options, polymer inclusion membranes (PIMs) emerge as the most practical candidate for real-world use, owing to their superior mechanical stability and longer operational lifetimes.

For non-technical readers, the takeaway is straightforward: future rare earth supply does not have to rely solely on opening new mines. Waste streamsโ€”long treated as environmental liabilitiesโ€”could become secondary sources of critical minerals.

Why This Matters for the China Question

China dominates rare earth processing and separation, not just mining. The study reinforces a central but often misunderstood reality of the REE market: processing technology, not geology, is the true bottleneck. Liquid membrane systems offer a theoretical pathway for countries such as Malaysiaโ€”and potentially Vietnam, Indonesia, or Thailandโ€”to build cleaner, localized processing capacity without replicating Chinaโ€™s environmentally intensive model.

That said, the authors are careful not to oversell. LM technologies are not ready to displace Chinaโ€™s industrial-scale separation plants. Their near-term role is more likely to be complementaryโ€”supporting recycling, wastewater treatment, and niche recovery applications that can incrementally diversify supply chains rather than overhaul them overnight.

Implications for Policy, Industry, and the Public

For policymakers, the study suggests that investment in separation and recovery technologies may yield greater strategic value than issuing new mining licenses alone. For the industry, LM systems could reduce waste-treatment costs while recovering valuable materials that are currently lost. For the public, the research highlights a rare convergence: environmental cleanup and critical-mineral security can advance together rather than in conflict.

Limitations and Unresolved Questions

The authors clearly acknowledge several constraints:

  • Scale-up uncertainty: Most LM successes remain confined to laboratory settings, not harsh industrial wastewater environments.
  • Stability challenges: Membrane fouling, carrier leakage, and long-term degradation remain unresolved at scale.
  • Economic ambiguity: The cost competitiveness of LM systems versus entrenched Chinese processing remains uncertain.
  • Geopolitical blind spots: While LM technologies could reduce reliance on China, the paper does not deeply address intellectual-property barriers, export controls, or strategic material access.

These gaps are material and consequential. Without sustained funding, pilot-scale deployment, and regulatory support, LM technologies risk remaining scientifically impressive but commercially marginal.

Conclusion

This study does not promise a silver bullet. What it does offer is a credible technical escape hatch from the most environmentally damaging aspects of rare earth processing. Liquid membrane technologies are unlikely to dethrone Chinaโ€™s dominance in the near term, but they could quietly reshape how rare earths are recovered, reused, and regulatedโ€”especially in Southeast Asia. For governments and investors focused on long-term supply-chain resilience, the message is clear: the next rare earth breakthrough may come from wastewater, not from a new mine.

Citation

AbdulKadir, W.A.F.W., Che Omar, R., & Mohd Harun, M.H.Z. (2026). Rare earth elements recovery via liquid membrane technology: Recent advances and application potential in Malaysia. Journal of Water Process Engineering, 81, 109369. https://doi.org/10.1016/j.jwpe.2025.109369 (opens in a new tab)

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By Daniel

Inspired to launch Rare Earth Exchanges in part due to his lifelong passion for geology and mineralogy, and patriotism, to ensure America and free market economies develop their own rare earth and critical mineral supply chains.

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