Ramón Barúa Costa of Aclara Resources specializes in critical materials, particularly rare earths, and sustainably producing these elements.
As the world accelerates toward decarbonization to combat climate change, demand for clean energy technologies—from electric vehicles (EVs) to wind turbines to advanced robotics—is growing at an unprecedented rate. Rare earth elements (REEs), essential for permanent magnets used in these applications, are emerging as critical enablers of today’s green economy, powering the transition to sustainable energy and driving the future of electrification and technology innovation.
Why Rare Earths Are Critical To Clean Energy Technologies
Rare earth elements like neodymium and dysprosium are widely used in motors for EVs, robots and drones due to their ability to create powerful, lightweight and efficient magnets. Magnets made with these rare earth elements have not only enabled Tesla to produce EV motors that deliver substantial torque with minimal power consumption, thereby improving overall energy efficiency, but they are also key components in high-performance robotics, which similarly require compact, powerful motors for precision tasks.
Semiconductor companies like NVIDIA also rely on these elements to manufacture high-performance computing and graphics processing units (GPUs), underscoring how rare earths are foundational to technological developments in AI, gaming and data centers.
Meeting The Global Supply Chain Challenge
Global demand for rare earths is rising rapidly. According to the International Energy Agency (IEA), the production of rare earths will need to increase sevenfold by 2040 to meet the needs of the clean energy sector alone. However, supply chains remain highly centralized, with China accounting for more than 60% of global rare earth mining and nearly 90% of refining. This concentration heightens supply chain risks, especially as geopolitical tensions increase. This creates a unique challenge: how to secure a reliable and sustainable supply of rare earths in a highly competitive global economy where supply chains are becoming increasingly strained.
The need to expand the global rare earth supply chain has become increasingly urgent. To address these risks, many countries are actively diversifying their rare earth supply chains. Western nations like the United States are investing in domestic mining and refining operations to secure reliable REE access and reduce reliance on a single supplier. This shift is not just about securing REEs for the clean energy transition; it’s also about ensuring supply chain resilience, stability and strategic independence.
Driving Diversification And Sustainability In Rare Earth Supply Chains
In the race to diversify the global supply chain for rare earth elements, many companies are exploring new deposits. Australia, the United States and Brazil are home to some of the largest deposits of rare earth elements outside of Asia, and mining companies operating in these nations are beginning to tap into this potential.
Collaborative efforts between governments and private companies are crucial for advancing innovative extraction and refining methods, allowing these regions to reduce global dependence on a single supplier while advancing environmental, social and governance (ESG) goals.
For example, Iluka Resources in Australia is partnering with the Australian government to develop a rare earth refinery and establish a domestic supply chain. In the United States, the Department of Defense (DoD) has supported several projects, including Lynas Rare Earths with $258 million to build a processing facility and MP Materials with $35 million to bolster local refining capabilities.
In addition, e-VAC Magnetics (e-VAC), one of the world’s largest permanent magnet producers, has received $94.1 million from the DoD to establish a permanent magnet plant, further strengthening the U.S. rare earth value chain. My company, Aclara Resources, is also partnering with e-VAC to develop an integrated mine-to-magnet solution.
However, driving diversification and sustainability in rare earth supply chains is not without challenges. One of the key obstacles is the higher upfront cost associated with environmentally friendly practices. While these methods may initially seem costlier, they are often more competitive in the long term when considering the broader global economic and environmental benefits.
To this end, Aclara is pioneering environmentally friendly rare earth extraction with its “circular mineral harvesting” technology, which is being deployed in rare earth projects in both Chile and Brazil. By avoiding harsh chemicals, the ecological impact is minimized, setting a new standard for sustainable rare earth mining, a field historically associated with significant environmental impacts.
Based on my experience, organizations aiming to embrace sustainable REE mining practices should incorporate circular economy principles from the outset. Designing processes with low CO₂ emissions, minimal water usage and reduced environmental disturbance as key objectives is vital. Collaboration across the value chain is another essential step. Engaging with governments, research institutions and downstream users can help share costs and accelerate innovation.
Ultimately, the transition to sustainable practices requires a shift in mindset. Companies should recognize that investing in green technology and infrastructure today positions them as leaders in tomorrow’s market, where stakeholders increasingly prioritize environmental responsibility.
Securing Our Clean Energy Future
The global transition to clean energy will face a rocky road ahead without a stable and sustainable supply of rare earth elements. With demand for these materials expected to surge in the coming decades, the rare earth industry must evolve to meet the needs of the green economy. This means not only scaling up production but also diversifying the supply chain and ensuring that REE mining practices are as sustainable as possible.
As the world pivots toward clean and autonomous technologies, the importance of rare earth elements has never been clearer. As governments, companies and investors recognize rare earths as a key enabler of this transformation, securing a diversified and sustainable supply of these critical metals can help fuel the clean energy revolution while ensuring long-term economic growth, technological innovation and environmental stewardship.
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