Potential New Rare Earth Elements Solution Given China’s Ban on Exports?

Highlights

• China’s export ban on critical rare earth elements heightens global supply chain tensions and underscores strategic mineral dependencies.
• University of Texas research reveals U.S. coal ash contains approximately 11 million tons of rare earth elements, offering a potential domestic supply solution.
• Multiple technical, economic, and environmental challenges must be addressed to effectively extract and utilize rare earth minerals from coal ash waste.

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Earlier today we reported on China’s recent decision to ban the export of critical rare earth elements, including gallium, germanium, and antimony, marking a significant escalation in global supply chain tensions. These minerals are essential for both military applications and civilian technologies, such as semiconductors and advanced weaponry. The move underscores China’s strategic leverage, as it dominates the global supply of these materials.

Writing for the Institute of Supply Management (opens in a new tab), Sue Doerfler reminds all interested that the United States has long depended on Chinese imports to meet its rare earth element needs. In 2019, China accounted for 78% of U.S. rare earth imports and 63% of global imports. This dependency has raised concerns about national security and economic stability, prompting U.S. efforts to diversify sources and reduce reliance on Chinese supplies.  In fact, it is this exact process of diversification of rare earth element (REE) supply chains that promoted the launching of Rare Earth Exchanges.

Ms. Doerfler points out some news we covered involving the University of Texas at Austin and the identification of substantial domestic source of rare earth elements within coal combustion byproducts, commonly known as coal ash. Their study, published in the International Journal of Coal Science & Technology, estimates that U.S. coal ash deposits contain approximately 11 million tons of rare earth elements—nearly eight times the current domestic reserves.

The concentration and extractability of rare earth elements from coal ash vary based on the coal’s origin. For instance, coal ash from the Appalachian Basin has higher concentrations but lower extractability rates (around 30%), whereas ash from the Powder River Basin, despite lower concentrations, offers extractability rates up to 70% as reported by UT Austin News (opens in a new tab).

This discovery presents a dual opportunity: bolstering the U.S. supply of critical minerals and addressing environmental concerns associated with coal ash disposal. By extracting valuable elements from this waste, the U.S. can transform an environmental liability into a strategic asset, potentially reducing dependence on foreign sources.

However, several critical questions arise:

• Economic Viability: Can the extraction of rare earth elements from coal ash be scaled up in a cost-effective manner to meet industrial demands?
• Environmental Impact: What are the potential environmental consequences of large-scale extraction processes, and how can they be mitigated?
• Supply Chain Integration: How quickly can these domestically sourced materials be integrated into existing supply chains to alleviate current dependencies?

Addressing these questions is crucial for the U.S. to develop a resilient and independent supply of rare earth elements, thereby enhancing national security and economic stability in the face of evolving global trade dynamics.

Importantly the media and various writers have become quite one-sided in their point of view.  Describing China’s export restrictions as “supply chain warfare” implies a confrontational stance, potentially overlooking China’s perspective on protecting its resources and national security.  It might be interesting to also understand the Chinese perspective better, as this may be of paramount importance for negotiating possible approaches to improve relations.

Also, the article highlights the potential of coal ash as a domestic source but may understate the technical and environmental challenges involved in extracting rare earth elements from this waste.

Going from one reality to another will take vast investments, value chain disruption and considerable time.

Several challenges must be addressed to make this approach viable, especially in the production of rare earth magnets.

Variability in REE Concentration and Extractability

As the article disclosed, the concentration and extractability of REEs in coal ash vary significantly depending on the coal’s origin. For instance, coal ash from the Appalachian Basin contains higher average REE concentrations (approximately 431 milligrams per kilogram) but has a lower extractability rate of about 30%. In contrast, coal ash from the Powder River Basin has lower REE concentrations but a higher extractability rate of around 70% again as reported by UT Austin News (opens in a new tab).

This variability necessitates tailored extraction processes for different coal ash sources, complicating large-scale REE recovery efforts.

Technical and Economic Challenges in Extraction

Extracting REEs from coal ash involves complex chemical processes that can be costly and environmentally taxing. The low concentration of REEs in coal ash compared to traditional ores means that large volumes of ash must be processed to obtain meaningful quantities of REEs. This not only increases operational costs but also raises concerns about the environmental impact of the extraction processes as cited in MDPI (opens in a new tab).

Environmental and Regulatory Considerations

Processing coal ash to extract REEs can generate secondary waste streams, potentially leading to environmental contamination if not managed properly. Strict environmental regulations may impose additional costs and operational constraints on extraction facilities, affecting the overall feasibility of coal ash as a REE source.   These complexities cannot be ignored.

Supply Chain and Infrastructure Limitations

Establishing a domestic supply chain for REEs from coal ash requires significant investment in infrastructure, including processing plants and transportation networks. The current lack of such infrastructure in the U.S. poses a substantial barrier to the timely and cost-effective development of this resource.

Market Dynamics and Economic Viability

The global REE market is highly competitive, with China controlling a significant share of both mining and processing capacities. Fluctuations in REE prices can impact the economic viability of domestic extraction projects. For example, low rare earth prices have previously led companies like Lynas Rare Earths to slow down production ramp-ups as reported in The Australian (opens in a new tab).

Additionally, the U.S. has imposed tariffs on Chinese rare earth magnets, which could influence market dynamics and the competitiveness of domestically sourced REEs.

Technical Challenges in Magnet Production

Producing high-performance rare earth magnets requires specific REEs, such as neodymium and praseodymium, in high purity. The extraction processes must efficiently separate these elements from coal ash without significant contamination. Developing such precise extraction and purification technologies remains a technical challenge.

Final Rare Earth Exchanges Takeaway

While coal ash represents a potential domestic source of REEs, several technical, economic, and environmental challenges must be overcome to utilize it effectively, particularly for manufacturing rare earth magnets. Addressing these issues requires coordinated efforts in research, infrastructure development, and market strategy to establish a reliable and sustainable domestic REE supply chain.