Their ‘rarity’ comes from the truth that they’re seldom present in concentrations excessive sufficient for economical extraction. These parts are the bedrock of recent expertise, from shopper electronics to superior protection programs.
Uncommon Earth Components (REEs) are a bunch of 17 important metals that, regardless of their identify, are reasonably considerable within the earth’s crust. Their ‘rarity’ comes from the truth that they’re seldom present in concentrations excessive sufficient for economical extraction. These parts are the bedrock of recent expertise, from shopper electronics to superior protection programs.
What Are Uncommon Earth Components (REEs)?
The 17 REEs embody the 15 lanthanides (atomic numbers 57-71), plus Scandium (Sc) and Yttrium (Y). They’re broadly categorized into two classes:
- Mild Uncommon Earth Components (LREEs)
- Heavy Uncommon Earth Components (HREEs)
India possesses reserves of LREEs like Lanthanum, Cerium, Neodymium, Praseodymium, and Samarium. Nevertheless, it lacks commercially viable portions of essential HREEs corresponding to Dysprosium, Terbium, and Europium, creating a major import dependency.
The International Market: China’s Dominance
The worldwide REE market is closely concentrated, with China controlling about 70% of world manufacturing. This dominance creates vital geopolitical danger for importing nations.
- Reserves: China holds the world’s largest reserves at 44 million tons (38% of the worldwide complete), adopted by Brazil (18%).
- Manufacturing: In 2023, China produced 240,000 tons of REEs, accounting for two-thirds of the worldwide output of 356,000 tons. The US was a distant second, producing 12.2%.
- Exports: China can be the biggest exporter, accountable for 64% of the worldwide export worth and a staggering 86% of the amount. Its REE exports grew at a CAGR of 11.6% from 2018 to 2023.
The first importers are Japan (57% of world import worth) and Malaysia (70% of world import amount). India depends closely on China, which provided 81% of India’s REE import worth in 2022.
Why REEs are Important for Know-how and Protection
REEs have distinctive magnetic, luminescent, and catalytic properties that make them indispensable in over 200 merchandise.
The Coronary heart of Trendy Know-how
Key minerals like Cobalt, Nickel, and Lithium are important for EV batteries, whereas REEs are important for:
- Cell phones and pc arduous drives
- Electrical and hybrid autos
- Semiconductors and superior electronics
- Flatscreen TVs and displays
As an example, uncommon earth magnets are much more highly effective than standard magnets, making them important for miniaturizing and enhancing the effectivity of high-tech units.
The Spine of Trendy Defence
A number of REEs are essential for army functions. The projected utilization for 2025 signifies the estimated share of complete REE demand that will likely be for a selected component in protection and expertise.
- Neodymium (Nd): Utilized in high-performance magnets for missile steerage, avionics, radar, and sonar programs. Projected utilization: 38%.
- Dysprosium (Dy): Gives thermal stability to magnets utilized in UAV propulsion, radar programs, and stealth coatings. Projected utilization: 24%.
- Samarium (Sm): Key for heat-resistant magnets in missile elements, digital countermeasures (ECM), and lasers. Projected utilization: 12%.
- Yttrium (Y): Important for high-temperature alloys and lasers utilized in stealth coatings, night time imaginative and prescient programs, and communication modules. Projected utilization: 9%.
- Terbium (Tb): Boosts magnet efficiency in radar programs and UAV motors. Projected utilization: 8%.
- Gadolinium (Gd): Used for radar absorption and specialised optics in sonar, stealth coatings, and mine detection. Projected utilization: 5%.
- Europium (Eu): Important for phosphors in night time imaginative and prescient goggles and superior heads-up shows. Projected utilization: 4%.
Surging Demand and Geopolitical Danger
Because the world transitions to scrub power, the demand for REEs is ready to blow up. The Worldwide Vitality Company (IEA) initiatives that world demand might rise from 93 kilotons in 2024 to between 180–202 kilotons by 2050. The share of REEs utilized in clear applied sciences is predicted to develop from 18% to just about 40% in the identical interval.
This rising demand, coupled with a extremely concentrated provide chain, shifts power safety dangers from fossil fuels to crucial minerals. In contrast to the diversified oil and fuel markets, the REE market could be simply disrupted by geopolitical elements.
India’s Blueprint for REE Self-Reliance
To counter these dangers, India is pursuing a multi-pronged technique to safe its REE provide chain.
Mitigating Methods and Their Challenges
Nations usually have three choices to scale back provide dependency, every with its personal drawbacks:
- Recycling: This course of is water- and energy-intensive and requires a strong provide chain to gather e-waste.
- R&D: Investing in options is financially costly, time-consuming, and affords no assure of success.
- Various Imports: Sourcing from different nations is usually restricted by geopolitical constraints.
India’s Strategic Initiatives
India is actively working to beat these challenges and construct a resilient REE ecosystem.
- Boosting Home Capabilities: IREL (India) Restricted, a state-owned enterprise established in 1950, leads REE extraction and processing. The US not too long ago eliminated IREL from its ‘Entity Listing,’ a transfer that may assist strengthen India’s crucial mineral provide chain. IREL has additionally commissioned a Uncommon Earth Everlasting Magnet Plant in Visakhapatnam to supply samarium-cobalt magnets.
- Coverage and Partnerships: The federal government has launched a number of key initiatives, together with establishing Khanij Bidesh India Ltd (KABIL) to amass abroad mineral property, becoming a member of the US-led Mineral Safety Partnership, and amending the Mines and Minerals (Improvement and Regulation) Act.
- Diversifying Imports: India is exploring new partnerships. Kazakhstan, with its reserves of 15 out of 17 REEs and established processing capability, presents a promising various to diversify REE imports away from China.
(The creator of this text is a Defence, Aerospace & Political Analyst primarily based in Bengaluru. He’s additionally Director of ADD Engineering Parts, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You may attain him at: girishlinganna@gmail.com)
(Disclaimer: The views expressed above are the creator’s personal and don’t mirror these of DNA)
