Economist recently published an article about important rare-earth materials which are needed for new technologies like electric vehicles and computing chips. There is no unanimity among countries about the definition of these materials. However, in the below picture, you can see the definition of rare-earth elements as per United States Department of Energy. It is a group of 17 minerals that share similar chemical properties. All except Promethium are classed as critical by the US department of energy.Â
Magnets made of neodymium are used in wind turbines and electric vehicle engines. Because yttrium and europium can exhibit a variety of vivid colors depending on the light source, they are utilized in computer and television screens.
Tiny quantities of rare earths are needed. It takes careful investigation to find them. For instance, it is believed that Ukraine has sizable rare-earth resources, but investigation has been hampered by conflict and a lack of funding. According to the United States Geological Survey (USGS), Greenland and 15 other nations have real reserves.
China has one the largest reserves of rare-earth and it is the current mega manufacturer and refiner of rare-earth elements. In 2024, 69 percent of all extracted rare-earth elements were dug out in China.
Yet the market is still small and niche. Price spikes and shortages may result from export restrictions or supply interruptions for specialized metals like rare earths, particularly in China. However, this might be resolved with the appropriate level of state-funded or subsidized investment in alternative providers.
