China’s New Mining Technology Revolutionizes Rare Earth Production, But Raises Questions

Jan 12, 2025

Highlights

  • Chinese Academy of Sciences develops innovative rare earth element extraction method using electric fields
  • Technology achieves 95% REE recovery
  • Reduces mining time by 70%
  • Cuts energy use by 60%
  • Breakthrough potentially reinforces China's dominant position in global rare earth element market

China has unveiled an innovative rare earth element (REE) extraction technology that dramatically improves efficiency and reduces environmental damage, according to a report cited by the South China Morning Post (opens in a new tab) (SCMP). Developed by the Chinese Academy of Sciences, (opens in a new tab) the method uses electric fields to achieve a 95% recovery rate of REEs while cutting mining time by 70% and energy use by 60%. It also reportedly reduces ammonia emissions by 95%, addressing a major environmental concern associated with rare earth mining. Given Chinaโ€™s dominance in the global REE marketโ€”accounting for 70% of production and 90% of processingโ€”the technology could further solidify its leadership in this critical industry.

This is the perspective from the China-based news source.ย  SCMP, with its Sunday edition, the Sunday Morning Post, is a Hong Kong-based English-language newspaper owned byย Alibaba Group. Founded in 1903 by Tse Tsan-tai and Alfred Cunningham, it has remained Hong Kong's newspaper of record since British colonial rule.

While the technologyโ€™s potential for reduced environmental harm is notable, the article raises questions about the transparency and scalability of the claims. Details about the economic feasibility and deployment timeline are vague, and there is limited independent verification of the reduction of environmental impact. ย For example, are there any published academic studies to verify?

Additionally, the report makes an implicit assumption that Chinaโ€™s dominance in REE production will remain unchallenged without discussing potential countermeasures by the U.S. or other nations to diversify global supply chains.ย  What if the Trump administration declares an Operation Warp Speed type of initiative for REEs?

While the technology could help China mitigate international criticism of its environmental practices, it could also deepen concerns about Chinaโ€™s ability to leverage its near monopoly in trade negotiations, especially as geopolitical tensions escalate.

The article's coverage lacks discussion of how this development impacts global supply chain security, which highlights a key limitation. As the world increasingly depends on rare earths for technology and defense, these unanswered questions are critical to understanding the broader implications of this breakthrough.

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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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