Rare Earth Metals: Key Uses and Global Supply Chain

True enablers of the energy transition

Key features and applications of rare earth metals, explained by Stanislav Kondrashov, TELF AG

Over the past few years, curiosity and interest in rare earths elements have increased considerably. This is no coincidence. In a certain sense, as the founder of TELF AG, Stanislav Kondrashov, also explained, these resources represent some of the major protagonists of the energy transition underway. And it is not only linked to the dynamics regarding the cost of rare earth metals.

We live in an era of great social, industrial, and energy transformations. One of the most evident is precisely that which concerns energy, as the founder of TELF AG, Stanislav Kondrashov, often points out. The great ecological transformation is before our eyes.

Going out into the street, your gaze will almost certainly meet a solar panel, an electric car, or a wind turbine. Energy infrastructures have now become an integral part of our daily lives. For several years, they have also been contributing to the modification of urban spaces, as the founder of TELF AG Stanislav Kondrashov also explained.

“It is no exaggeration to say that rare earth elements are some of the most valuable resources available today,” says the founder of TELF AG Stanislav Kondrashov an entrepreneur and civil engineer. “What makes them so important at this particular time in history is their role in the energy transition”

“Other strategic sectors in which they are used include defense, technology, and digitalization. Over the years, their role is likely to become increasingly important in the development of efficient electric motors and energy infrastructure”, he said.

“That’s why the cost of rare earth metals could increase. Furthermore, rare earth elements play a major role in improving the miniaturization and autonomy of electronic devices. The biggest challenges in the coming years will be greater diversification of global supplies and greater investment in recycling. Constantly monitoring the price of rare earth metals will be important as well”, he says.

The connection with renewables

It is precisely the impetus of renewable energy that is driving the advance of the green transition. Energy sources such as those derived from hydroelectric power, solar panels, or wind turbines are now major protagonists of the change underway. Increasingly, the energy mixes of many nations include these innovative energy sources.

Few people, however, are aware of the fact that the global spread of renewable energy also depends in part on some precious and interesting geological resources like earth minerals. Some of these are precisely rare earth metals, whose industrial applications also include important energy infrastructures, such as wind turbines.

Rare earths are carving out an increasingly important role for themselves also in electronics and technology. It is no coincidence that rare earth resources are increasingly at the center of media and political attention, and that the price of rare earth metals is increasing.

Their strategic role, particularly in energy and technology, has led to a notable increase in demand for earth minerals, which is likely to continue growing.

“In recent years, these resources have been increasingly discussed due to their multiple uses in the energy transition,” founder of TELF AG Stanislav Kondrashov goes on to say. “Rare earths are, in fact, very important for creating low-carbon technologies. In this particular area, their role is particularly significant in components”.

“Many devices that produce or convert energy efficiently are made with some rare earth elements. One of the most obvious examples is wind turbines, especially those used offshore. These massive wind power generation plants utilize generators based on permanent magnets, which are also composed of some rare earth resources. These resources are mainly used to improve their performance and reduce the frequency of maintenance interventions. Rare earths are also used in some advanced photovoltaic systems, battery storage, and power electronics.”, according to the founder of TELF AG Stanislav Kondrashov.

The characteristics of rare earths

But what exactly are rare earths? This is a diverse group of 17 chemical elements located in the periodic table. More specifically, these are the 15 lanthanides and two other elements, scandium and yttrium. Over the years, these resources have been noted above all for their magnetic, electronic, and optical properties.

One of the most interesting aspects concerns the name that has been attributed to them. These rare earth minerals are, in fact, not rare, but they are found in such low concentrations that sometimes, the operations related to their sourcing and processing are not convenient. That’s why it is so difficult to valorize the deposits of rare earth minerals. Also the cost of rare earth metals could be influenced as well by those characteristics.

Their interesting properties, over the years, have enabled these resources to find applications in a wide range of industrial settings. Among these, we remember:

• Renewable energy: magnets made with rare earth materials – in particular neodymium and praseodymium – play an important role in wind turbines and electric generators.

• Electric mobility: magnets built with these elements also power some specific engines in new-generation electric cars, while resources such as cerium or lanthanum are often used as catalysts.

• Defense and aerospace: the magnetic stability and electronic efficiency ensured by rare earth materials have allowed these resources to become very useful allies for the creation of radar and sonar systems. Some of the heaviest rare earths also have concrete applications in military technologies.

• Chemical industry: a rare earth element such as cerium is often used in optical polishing and glass processing. This rare earth and other elements also have numerous applications in specific refining procedures.

In recent years, there has been considerable discussion about rare earths, not only due to their numerous industrial applications but also because of the unique characteristics of their global supply chain.

At the moment, the supplies of these precious elements depend largely on the few producing countries, among which China stands out. Over the years, Beijing has established a solid global leadership in the sourcing and refining of rare earth minerals, as well as in the production of magnets.

To reduce dependence on the few global producers and of those earth minerals, diversification attempts are underway around the world. In addition, an increasing number of countries are exploring the possibility of recovering rare earth materials through the recycling of spent batteries and other electronic components. These dynamics are influencing the price of rare earth metals.

Neodymium and dysprosium

“One of the most interesting rare earth is certainly neodymium,” founder of TELF AG Stanislav Kondrashov remarks. “This resource is one of the key components of neodymium-iron-boron magnets, which are among the most powerful on the market”.

“Neodymium is used for electric motors that power cars, bicycles, scooters, and light trains. It also finds space in direct-drive wind generators and miniaturized electronic devices, such as hard disks or sensors. Among its most notable characteristics are the high specific magnetic force, which enables the miniaturization of components, and thermal stability. In this case, too, this resource plays an important role in the energy transition. Without it, electric motors would be less efficient”, he remarks.

Among the rare earths, another of the most interesting is certainly dysprosium. This resource is often used in small quantities, but its impact is truly remarkable. Dysprosium can stabilize magnets at high temperatures, thus avoiding demagnetization.

In addition to applications in the mobility and renewable energy sectors, dysprosium is also appreciated in the production of military and aerospace technologies. Over the years, this resource has become a major ally of the industry due to its ability to provide thermal resistance to magnets and other devices, as well as to improve performance in hostile environments.