Enhancing the production of less hazardous rare earth elements may lessen the EU's vulnerability in regards to supply.
In a bid to secure a stable and sustainable supply of Rare Earth Elements (REEs), crucial for modern technologies such as wind turbines, electric vehicles, and components of the EU's green energy transition, the EU project REEsilience is taking strides to diversify the supply chain.
Europe, heavily dependent on imports for REEs, primarily from China, faces concerns about supply security, market volatility, and non-sustainable mining practices. To address these challenges, the project identifies the most promising non-European REE sources, primarily in Africa, Greenland, and strategic partnerships outside China.
Key non-European sources and partnerships highlighted by REEsilience and the EU’s broader strategy include South Africa and Malawi, where Mkango Resources in Malawi and Frontier Rare Earths in South Africa focus on mining neodymium and praseodymium for EV motor magnets, representing vital alternative supply sources under EU strategic projects. Greenland, with its low-risk REE deposits and special political relationship with the EU through Denmark, presents a unique and promising case.
Besides mining, the EU relies heavily on maximizing urban mining (recycling REEs from electronic waste, EVs, wind turbines) via projects such as iBot4CRMs using AI robotics, and aims to boost processing and recycling capacities outside Europe through alliances with countries like Japan.
Emerging processing hubs in Brazil, supported by government funding, are another significant part of the strategy. Greenland's lithium-related developments, although lithium focused, are part of the EU’s overall critical raw materials diversification alongside rare earths.
The EU's Critical Raw Materials Act (CRMA) designates 60 strategic projects, 13 located in third countries (non-European), to ensure diversified extraction and processing, capable of meeting at least 25% of recycling and 40% of processing needs by 2030.
The model developed by TU Delft analyses interactions within the REE supply chain and evaluates future developments. Initial results suggest that the proposed resilience measures can mitigate the impacts of supply disruptions on prices. Researchers have mapped the availability, prices, and quantity trends of various non-Chinese origin REE sources from 2022 to 2035.
Projects in Sweden, Finland, and Greenland offer medium to high potential in a stable regulatory environment. Partnerships with Canada and Australia are particularly promising due to their lower ESG risks and advanced development stage of deposits. An inventory has been created, covering both primary sources (mining) and secondary sources (recyclable end-of-life products).
The exploitation of a few low ESG-risk deposits could potentially solve the EU's REE supply challenges. REEs are indispensable for a wide range of modern technologies, especially those driving the green energy transition, due to their use in permanent magnets.
The researchers plan to further expand and refine the model over the coming months. This diversified, multi-pronged approach aims to establish a more sustainable and geopolitically resilient supply chain beyond the current concentration in China.
- In the pursuit of environmental-science-based solutions, the EU is collaborating with Mkango Resources in Malawi and Frontier Rare Earths in South Africa, focusing on the mining of neodymium and praseodymium for EV motor magnets, contributing significantly to the diversification of the rare earth elements (REEs) supply chain.
- To combat financial risks associated with the REEs supply chain, the EU is investing in urban mining technology, such as AI robotics for electronic waste recycling, aiming to boost processing and recycling capacities, both in and outside Europe.
