3 August 2022
The High Impact of Rare Earths on the AEC Industry
Imagine if iron and steel suddenly became unavailable, or so expensive that they may as well be unavailable. What would the AEC industry do without it? What if both fluorescent and LED lights were suddenly removed from the market? Or there was a sudden shortage of polished glass? A towering skyscraper clad in particle board? A four-lane bridge constructed of two-by-fours? We think not. But unless we secure the rare-earth supply chain, things like mobile phones, lightbulbs, computers, and hundreds of other items that we take for granted teeter on the brink of unavailability.
Turkey (the country, not the fowl) recently made a bold statement regarding their discovery of a rare-earths deposit that they claimed could rival China’s. Further investigation uncovered some interesting data regarding rare earths, with potential impact on the AEC industry. As a CAD/BIM professional, this could influence future projects, so let’s dive in.
What Are Rare Earths?
The rare earth elements (REE) are a set of seventeen metallic elements that are components of products in a broad range of industries. The important thing to grasp here is that they’re not optional ingredients, they’re essential. Without them, hundreds of products that we rely on every day simply couldn’t exist. And there is currently no technology to easily replace them.
Imagine if iron and steel suddenly became unavailable, or so expensive that they may as well be unavailable.
While the amount of REE used in a product might literally be a fractional percentage, and, therefore, insignificant in terms of weight, value, or volume, the REE is vital to the functioning of the product. For example, without REE-infused magnets, the spindle motors and voice coils of desktops and laptops would not be possible. Can you imagine your life without your computer or cell phone? No, neither can we.
The Role of Rare Earths
While REEs are fractional components in high-tech devices such as smartphones, digital cameras, computer hard disks, fluorescent and LED lights, flat-screen TVs, computer monitors, and electronic displays, some REEs are used in large quantities in clean energy and defense technologies.
The glass industry is the largest REE raw materials user, both in terms of lenses (in cameras and cell phones) and sheet glass. Imagine having a window that was dull and murky. Or a windshield. What would be the point of even having one?
When we talk about REEs in magnets, we’re not talking about your common garden-variety fridge magnet. We’re talking computer hard disks, disk drives, power steering, electric windows, power seats, and audio speakers.
The car batteries in hybrid electric cars use 10 to 15 kgs of lanthanum, one of the REEs, per vehicle. That’s up to 33 pounds of it in a single battery. And four specific REEs are required in steelmaking for the removal of impurities and to produce special alloys.
Look around you and you’d be hard pressed to continue living life as we know it without REEs. We say, “Wow, that new building is gorgeous,” as we gaze upon the genius sliver of gleaming iridescent blue glass that is the newest addition to the city skyline. We admire our brand-new cell phone, laptop, television, electric vehicle, or color-changing LED system and “ooh and aah” appropriately.
We sleep soundly at night, knowing that our country has world-class defense and guidance systems, lasers, radar, and sonar systems. What we don’t ever say is, “Wow, look at what those REEs have given us.” And we need to start thinking that way. “But,” you say, “what’s the big deal? Rare earth elements? Surely they just come from, well, you know, the earth?” And you expectantly look down at the dirt beneath your feet.
The answer is simple. Kind of. Because it’s yes. And no.
A towering skyscraper clad in particle board? A four-lane bridge constructed of two-by-fours? We think not.
Not All Earth Is Rare Earth
Are there rare earths in your garden soil? Sure, some, probably. Enough to support your personal requirements? Cue maniacal laughter. Short answer: No.
See that word, “rare”? If you dug up your entire neighborhood, twenty feet deep, you still wouldn’t have vaguely enough for anything significant, even if you choose not to build your own hybrid electric vehicle battery.
The 17 REEs are generally found — in different combinations — in trace quantities in most soils. In certain parts of the world, for various geographical reasons, there are sites where the concentrations are higher, and massive extraction and processing of the ore produces a return on investment.
So, who’s got the good stuff?
Rocky Supply Chain
In 1993, China accounted for 38 percent of the world’s REEs. In 2011, China accounted for 97 percent of the world's production of REEs. The problem with this is that starting in 1990, China began to limit the amount of REEs that it allows to be produced and exported, effectively controlling the supply chain. The drawbacks of having just one nation responsible for the global supply of any resource are obvious. China currently controls the global supply of REEs, and they have been known to leverage this fact.
This prompted other countries to investigate their own potential resources, but there are two factors of significance to consider here. One, which countries actually have worthwhile rare earth reserves, and two, which countries are actually mining those reserves? In terms of mining, in 2021 China produced 168,000 metric tons (MT) of REEs, the USA produced 43,000, Myanmar (Burma) 26,000, Australia 22,000, Thailand 8,000, Madagascar 3,200, India: 2,900, Russia 2,700, Brazil 500, and Vietnam 400 metric tons. All these countries combined, produced less than China. While this means that China itself produces about 60 percent of the REEs on the world market today, they still control nearly all of the world’s processing facilities according to the Foreign Policy Research Institute.
But who actually has the reserves? It’s no surprise that China comes in, top of the list, with 44 million MT in reserves. What is surprising is that Vietnam, which is last on the above list, has the second largest reserves of REEs in the world, at 22 million MT. Next is Brazil at 21 million, Russia at 12 million, India at 6.9 million, and Australia at 4.1 million metric tons. The United States and Greenland each have 1.5 million MT, although Greenland’s rare earths might never see the light of day since their current government canceled their rare earths-mining project.
Turkey, you may have noticed, fails to appear on either of these lists. However, in July 2022, Turkey disclosed that it has located a huge rare-earths reserve, estimated at around 694 million tons, which per Metin Çekiç, a member of the board of directors of the Istanbul Mineral exporters’ Association, should meet the world’s demand for the next 1,000 years. Phew! So, we’re off the hook in terms of the REE supply chain? Um, not so fast.
Items we take for granted in our daily existence teeter on the brink of unavailability.
Turkey may indeed have rare earths reserves, but there’s a but. Kathryn Goodenough, principal geologist at the British Geological Survey, says, “The idea that this is some massive new reserve that we didn’t know of before is just plain wrong.” She explains that without a formal estimation of these resources that meets the standards of the global mining industry, it’s impossible to know the full extent of the recoverable, high-grade rare-earths elements present in Turkey — and that’s what really matters.
Paydirt on Our Home Turf?
Currently, only one rare earths mine is operational in the US: the Mountain Pass Mine in California. Extracting rare-earths ore is only half of the problem, as the processing of the mined ore is both expensive and problematic, with high energy requirements and large byproduct loads. (Currently, most countries are shipping their rare-earths ore to China for processing.) Mountain Pass Mine received US Department of Defense funding in 2022 for enhanced processing capabilities to alleviate supply chain risks.
Wyoming, however, may soon be on track to contribute to US REE supplies. Two mineral exploration companies — one in northeast Wyoming, the other in the southeast — each think they may have hit the jackpot, although it is, in all honesty, still too early to be sure.
Rare Element Resources, the company exploring in northeast Wyoming, has been evaluating mining potential at its Bear Lodge rare-earths project east of Gillette. It discovered “what we believe is one of the most important rare earth resources in the world,” President and CEO Randy Scott told a Wyoming legislative committee. “We’ve drilled the heck out of it,” he said. “So, we’re in good shape as far as the resource goes.”
The company is also trying to bring the rest of the supply chain to Wyoming. Its processing and separation facility could be operational in 2024 if permitting goes according to plan.
There’s another interesting study soon to get underway at the Wyoming Innovation Center, where scientists from the National Energy Technology Laboratory will be working on a method to extract rare earths from the ash formed by burning coal. Research scientist Christina Lopano says, “What we’re proposing to do is a very small pilot. But if we can demonstrate it on the smaller scale, with a couple of barrels and some separation technologies, there’s space there if somebody wanted to potentially take it to the next step and commercialize it.”
By the People, For the People
According to US Treasury Secretary, Janet Yellen, the US views China’s virtual monopoly on the global REE supply chain seriously and wants to end its “undue dependence” on rare earths, solar panels, and other key goods from China. This could negate the impact of Beijing cutting off supplies as it has done to other countries. Yellen recommends diversifying US supply chains to rely more on trusted partners, which would help combat inflation and counter China’s “unfair trade practices.”
We hope the Wyoming sites are fruitful and that the US processing plants can produce sufficient REEs to take care of US needs. How satisfying would it be to construct buildings and bridges from locally sourced steel, glass, and all the other products of which REEs are critical components? How pleasing to know that we’ve produced our own commodities, created thousands of jobs, and fueled our own economy?
Are there rare earths in your garden soil? Sure, some, probably. Enough to support your personal requirements? Cue maniacal laughter. Short answer: No.
Top of the Heap
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