Highlights

• Detailed preprint review explores the entire rare earth elements (REE) production lifecycle, from exploration to mine closure
• China dominates current REE production, controlling 69% of mining and over 85% of global refining processes
• Sustainable REE supply chains require significant investment in processing technology, waste management, and environmental performance

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A multidisciplinary team led by Brody Loomis from the University of Texas at Austin has published one of the most detailed preprint reviews to date on the production lifecycle of rare earth elements (REEs), combining technical process mapping, environmental risk assessment, and industry insights from confidential interviews. The work spans exploration, extraction, processing, refining, waste management, and mine closure—pinpointing high-risk stages and emerging mitigation strategies.

Key Findings

The authors detail conventional extraction and beneficiation methods—crushing, flotation, magnetic and gravimetric separation—followed by hydrometallurgical refining (solvent extraction, leaching) that yields high-purity REOs but generates large volumes of chemical- and radiation-bearing tailings. China dominates the supply chain, accounting for ~69% of mining and over 85% of global refining, with near-total control of heavy rare earth processing.

Lifecycle data from operations such as Bayan Obo (China) and Mountain Pass (U.S.) reveal the scale of resource demands: beneficiation and refining can consume over 95 kg of water per kg of REO, with energy requirements ranging from 59–427 GJ per ton, depending on ore type and process efficiency. The largest environmental risks stem from tailings storage facility (TSF) failures, leachate contamination, and airborne dust carrying radioactive particles.

Industry interviews identified two dominant barriers to new REE capacity: processing technology maturity (flowsheet optimization, reagent efficiency) and capital risk, with demonstration plant cost escalations exceeding 25% in some cases. Regulatory hurdles remain, especially for projects handling naturally occurring radioactive materials (NORMs).

Implications

For policymakers and investors, the study reinforces that securing REE supply chains requires more than mine approvals—it demands midstream processing innovation, waste management upgrades, and regulatory clarity. Environmental performance, particularly in water recycling, tailings stabilization, and emissions control, will be central to the social license to operate. Companies pursuing domestic U.S. capacity will need to align with evolving voluntary sustainability standards (e.g., ICMM, Copper Mark) while competing with entrenched Chinese refiners on cost and scale.

Limitations

As a preprint, the work has not undergone peer review, and some lifecycle data—especially from Chinese operations—are based on secondary sources with variable transparency. Lifecycle assessments referenced are not standardized across sites, limiting direct comparison. Confidential industry interviews provide valuable context but are anecdotal and not statistically representative. Finally, while the paper outlines emerging technologies such as bioleaching and microreactor processing, economic feasibility at scale remains uncertain.

Conclusion

This University of Texas study offers a comprehensive, systems-level view of REE mining and processing, making clear that the environmental footprint is inseparable from the economics. For the ex-China supply chain to scale sustainably, investment must target both ends of the lifecycle—responsible extraction and next-generation processing—while managing the risks inherent in tailings, water use, and hazardous byproducts.

Citation: Loomis, B., Cappelen, U.W., Eaton, D., Bowsher, A.S., Lopez, K., & Lewellyn, J. (2025). Production Lifecycle Overview of Rare Earth Element Mining, Processing, and Environmental Considerations. University of Texas at Austin. Preprint at SSRN: https://ssrn.com/abstract=5382048 (opens in a new tab)

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