RARE EARTH ELEMENTS

Rare earth elements (REEs) are sourced primarily from minerals like bastnaesite, loparite and monazite. In 2023, the Mountain Pass Mine in California was a major producer, focusing on bastnaesite, a fluorocarbonate mineral from a Precambrian carbonatite deposit. REEs are crucial in various industries and are found in products like cellphones, magnetic resonance imaging (MRI) scanners and wind turbines. They are also vital in hybrid/electric-vehicle batteries, refining crude oil, and in medical devices such as pacemakers. Additionally, they are used in advanced defense technology, including stealth technology and radar systems. The United States saw a 9 percent decline in the estimated value of imported rare earth compounds and metals, dropping from $208 million in 2022 to $190 million in 2023. Production and reserves In 2023, global production of rare earth oxides (REOs) continued its upward trajectory. As seen in Fig. 1, U.S. production has risen steadily in recent years, reaching 43 kt of REOs in 2023. China maintained its position as the leading producer, with production of 240 kt of REOs, constituting roughly 68 percent of the world’s total production. Table 1 shows the statistics on REO production and minable reserves. Notably, production in Myanmar increased substantially and is now similar to the 2021 level. Countries like China, Vietnam, Russia and Brazil have the world’s largest reserves of REOs. These four countries account for approximately 90 percent of world REO reserves. Imports, exports and apparent consumption Domestically, imports, exports and apparent consumption of rare earth compounds and metals decreased from 2022. The United States imported approximately 9.7 kt in the form of either compounds or metals. China was the primary import source at approximately 72 percent. The primary U.S. exports of ores, compounds and metals were approximately 41.1 kt, decreasing by 6.6 kt from 2022. Apparent consumption, defined as production plus imports less exports, decreased by approximately 16 percent. The United States continued to experience greater than 95 percent net import reliance as a percentage of apparent consumption of compounds and metals. Figure 1 World, China and U.S. production of rare earth oxides. Figure 2 Neodymium, terbium and dysprosium prices, 2018-2023. Prices and economics Most REO prices decreased in 2023. As shown in Fig. 2, the prices of neodymium, terbium and dysprosium oxides increased significantly over several years but decreased in 2023. Neodymium prices were stable at around $50/kg for a few years, increased to $134/kg in 2022 but decreased to $80/kg in 2023. Terbium prices continuously increased with the average price reaching $2,051/kg in 2022, but it decreased to $1300/kg in 2023. The average price of dysprosium decreased to $323/kg. The trade balance between the United States and the rest of the world in rare earth oxides, compounds and metals stood at $190 million (net imports) in 2023. Table 1 Global production and mineable reserves of rare earth oxides. Trends and outlook Supply-chain disruptions, geopolitical tensions and environmental concerns are the key issues of the rare earth industry. With growing demand from emerging economies, advances in green technology, and increasing aerospace applications, the REE market is expected to grow at a compound annual growth rate of 4.2 percent from 2023 to 2030. China is projected to remain the top producer, occupying more than half of the market. As a consequence, this makes the global REE market sensitive to the health of its manufacturing sector, economy and geopolitics. Demand for magnets seems to be disproportionally higher than other REE applications and is expected to drive global demand for REEs over the next few years. A vast majority of automakers use neodymiumincorporated permanent magnet motors, with increased use projected for 2024.

RARE EARTH ELEMENTS

Authored by:
Himesh Patel

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From sessions to strategy: Revealing long-term and emerging innovation trends in data analytics, intelligent systems and automation

Mining education gets federal boost as industry faces workforce crunch

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From sessions to strategy: Revealing long-term and emerging innovation trends in data analytics, intelligent systems and automation

Mining education gets federal boost as industry faces workforce crunch

Critical minerals management on the federal seabed

To view the past issues of the UCA magazine you must be a member of SME/UCA.

PUMICE AND PUMICITE

SALT

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