Yet Another Misleading Media Take on Rare Earth Opportunities and Potential – Focus on Upstream-But Problems Midstream and Downstream

Highlights

• University of Texas study reveals $8.4 billion worth of rare earth elements in U.S. coal ash reserves.
• Approximately 70% of coal ash deposits in Appalachian, Illinois, and Powder River Basins are potentially accessible.
• Current extraction technology is developing.
• The U.S. lacks downstream processing capabilities to fully compete with China.

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A recent article in the International Journal of Coal Science & Technology, summarized by Andy Hall writing for MSNreports (opens in a new tab) on a University of Texas-led study led by geologist Bridget Scanlon (opens in a new tab) that explores the potential for extracting rare earth elements (REEs) from legacy coal ash deposits in the U.S. With global demand for critical minerals expected to surge due to the clean energy transition, the U.S. could tap into an estimated $8.4 billion worth of REEs in its coal ash reserves, particularly from the Appalachian, Illinois, and Powder River Basins. The researchers estimate that about 70% of these deposits are potentially accessible, though current extraction yields remain modest, and technology is still developing.

While the article shines light on an important upstream opportunity—recovering REEs from coal ash—it largely ignores the midstream and downstream challenges that have historically undermined U.S. competitiveness in the rare earth supply chain. Extracting REEs from coal ash may be a promising step, but it’s only the first in a complex chain. The U.S. still lacks the domestic capacity to separate, refine, alloy, and manufacture REE-based components, which are stages currently dominated by China. U.S. coal ash extraction would merely export raw material vulnerabilities downstream without significant investment in refining, metallization, and magnet manufacturing.

Conclusion

This report commits a familiar analytical error: focusing on the abundance of feedstock (coal ash) without addressing the processing bottlenecks or market viability constraints. If the U.S. is to reduce its dependence on China and truly compete in the rare earth sector, it must build the full supply chain—from mine (or ash pile) to magnet. Otherwise, promising upstream potential will remain just that: potential.