Chinese Scientists Breakdown State of Rare Earth Element Business Today, What’s on the Horizon? R&D of Paramount Importance

Hightlights

• Chinese scientists review the rare earth elements industry, focusing on classification, uses, and challenges.
• Key areas include sustainable extraction and recycling methods.
• The sector requires further research and development for transformative breakthroughs.

Scientists affiliated with Wuhan University of Technology, Chinese Academy of Sciences in Wuhan, and other collaborators in the People’s Republic of China review the rare earth elements (REEs) sector, covering their classification, properties, and global distribution, as well as the essential role as inputs into high-tech, renewable energy, and defense applications. The authors examine the environmental impact of REE mining and processing, involving ecological degradation and health risks. But Hongli Diao, Hubei Key Laboratory of Mineral Resources Processing and Environment, Wuhan University of Technology (opens in a new tab) and colleagues also delve into and describe economic and geopolitical challenges associated with the present concentrated supply chain and market volatility.

A key insight gleaned from the academic paper involves the ongoing efforts and research initiatives targeting the following key areas:

• Development of sustainable extraction methods
• Promotion of recycling from electronic waste
• Exploration of alternative materials

Investors and executives in the rare earth business should be mindful of changes in these topical areas.

Importantly however, regardless of the three categories of change above, according to the Chinese scientists, “the effectiveness and scalability of recycling technologies, as well as the feasibility of substitute materials, remain limited, highlighting the need for further research.” The authors’ point: research and development funding become integral to transformative disruption in the rare earth materials sector. Importantly because breakthrough change may not occur too often, breakthroughs that do occur very likely will yield considerable premiums as measured in value.

The review, published in the September 2024 edition of peer-reviewed journal Minerals Engineering (opens in a new tab), scans the transforming geopolitical landscape, given western government’s drive to break up China’s monopolistic grip on rare earth industry processes and ownership.

What changing international and national policies impact the REE industry? How crucial is the role of regulatory frameworks in shaping sustainable practices?

In addition to offering a decent understanding of today’s REE sector, the authors peg key crucial categories needing research and development for industry transformation.