How rare earths determine our future

They're found in almost every modern device today: rare earths . This term refers to 17 metals such as yttrium, cerium, and europium. They're incorporated into modern technologies like cell phones, LEDs, and cameras. They can be used to make so-called permanent magnets—magnets that are small and lightweight, yet deliver high performance. Once manufactured, they retain their magnetic properties for decades.

This is why rare earths are essential for the construction of wind turbines and electric cars . They are also used in military applications such as fighter aircraft, submarines, laser guns, and defense technology.

Their strategic importance for trade and defense makes these metals extremely valuable. Two of them are particularly sought after: neodymium and praseodymium. They are the two most important elements for the production of permanent magnets. Their current market prices are around €55 per kilogram. Terbium is even more valuable; one kilogram can cost up to €850.

Rare earths are not that rare – and yet scarce

The term "rare earths" has become commonplace, but it's misleading. Contrary to what the name suggests, these elements are quite common in rock and can be mined anywhere in the world.

The problem is that it's often not profitable. Industrial mining is only worthwhile where they occur in sufficiently large concentrations. And such regions are rare.

China | Baotou | Rare earth mining — This is what the mining of rare earths looks like: in liquid form, the earths are pumped through pipes into a lake in Baotou, China. Image: Weng Huan/Chinafotopress/dpa/picture alliance

According to a study by the United States Geological Survey (USGS), a leading mapping institute in the United States, 70% of all rare earths are currently mined in China . A large portion of the metals comes from the Bayan-Obi mine in northern China.

This mine is geopolitically significant. It is much larger than the next largest rare earth deposits in Australia and Greenland. And all the elements essential for the production of permanent magnets are found there.

China's monopoly on rare earths

After mining from the earth, a complex process begins: The elements are separated and refined in a highly specialized process to make them usable for subsequent processing. This process also takes place predominantly in China. This is why the country not only supplies the world's largest number of rare earths, but also the largest number of permanent magnets.

China's monopoly becomes particularly clear when one divides rare earths into light, medium, and heavy. The light elements—with the exception of neodymium and praseodymium—are generally less valuable, more abundant, and easier to obtain. They are easier to separate from the minerals in which they occur. The European Union imports 80-100% of its light rare earths from China.

The heavier earths, on the other hand, are generally rarer and have to undergo even more complex separation processes; they currently come 100% from China.

At the port of Lianyungang in the Chinese province of Jiangsu, large cranes stand in front of mountains of rare earths that are being loaded into containers by excavators — Rare earths brought to light are exported all over the world in large container ships, as here in the port of Lianyungang in the Chinese province of Jiangsu. Image: REUTERS

How the EU and USA want to become more independent

Many Western countries are concerned about China's monopoly . Therefore, in recent years, the EU and the US have begun to mine these valuable raw materials themselves . This is done, for example, through so-called urban mining – a process in which rare earths are recovered from waste. Old devices such as cell phones, laptops, and even beverage cans are recycled for this purpose.

Three rare earths lie in differently colored piles on a table — Recycling neodymium-iron-boron (here on the right) from the magnets of old wind turbines can make Europe more independent of Chinese raw materials . Image: Frank Rumpenhorst/dpa/picture alliance

In 2024, the EU passed a law on critical raw materials, which aims to make supply chains more independent and build domestic capacities. It sets non-binding targets for how much of these raw materials should be extracted within the EU by 2030. This will allow strategic projects to be located in EU member states and partner countries such as Norway. The EU also hopes that this will facilitate access to funding and enable fast-track approval procedures.

The United States is also investing heavily in domestic production. The American defense company aims to create its own supply chain by 2027, promising value creation "from mine to magnet" in the United States. Another focus is on potential production areas such as Ukraine and Greenland .

Both countries are of particular interest to US President Donald Trump because they theoretically possess large reserves. However, these reserves have so far been difficult to access. The realistic prospect of exploitation there is therefore uncertain.

The article was adapted from English.