The recent discovery by Sweden’s state-owned mining company, LKAB, has sparked immense interest in the field of rare earth elements. These elements play a significant role in various sectors, including clean energy, advanced transportation, healthcare, and national defense among others. However, China currently holds a monopoly over these resources. This article will delve into the significance of these discoveries, the importance of rare earth elements, and their distribution worldwide.
The Swedish Discovery and its Significance
Sweden’s largest deposit of rare earth metals was recently discovered by LKAB, marking a monumental stride for Europe. Located in Kiruna, in northern Sweden, this deposit houses over one million metric tons of rare earth oxides. This could not only decrease Europe’s dependence on foreign imports but also fuel the green transition.
Currently, Europe relies heavily on China for its supply of rare earths. In fact, the European Union sources 98% of its rare earth elements from China. This uncovering could potentially shift the power dynamic and help western countries reduce their dependence on China for these essential components.
Understanding the Importance of Rare Earth Elements
Rare earth elements are a collection of 17 metallic elements, consisting of the 15 lanthanides on the periodic table along with scandium and yttrium. These elements are crucial for the production of consumer electronics, computers, networks, communications, and clean energy technologies. They also have important applications in healthcare, environmental mitigation, and national defense.
Scandium is used in televisions and fluorescent lamps while yttrium is employed in drugs for rheumatoid arthritis and cancer treatment. They also feature in space shuttle components, jet engine turbines, and drones. Notably, cerium, the most abundant rare earth element, is vital to NASA’s Space Shuttle Programme.
China’s Monopoly over Rare Earth Elements
China has, over time, established a global stranglehold over the production of rare earth elements. At one point, it produced 90% of the world’s needed resources. Although this has decreased to around 60%, the majority share of processed rare earths still lies with China.
Despite the emergence of production units in Australia following China’s shipment curtailment of rare earths to Japan, the US, and Europe in 2010, China continues to hold a significant share in this market.
The Situation in India
India, despite possessing 6% of the world’s rare earth reserves, produces only 1% of the global output. It fulfills a majority of its needs by importing from China. Indian Rare Earths Limited (IREL) is chiefly responsible for mining and extraction of these primary minerals.
The beach sand of many coastal states in India is known to contain monazite, a mineral rich in rare earth elements. IREL endeavours primarily to supply thorium, extracted from monazite, to the Department of Atomic Energy.
The importance of rare earth elements is unquestionable. They are key to accelerating the global transition to cleaner energy forms, advancing medical care, boosting defense capabilities, and much more. Given their significance, the control and sourcing of these resources will undeniably shape geopolitical dynamics in the future.
