Numerous nations began to decarbonize their electrical energy networks in response to the agreement reached at the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow and several other key international gatherings. With the transition agenda toward clean energy and net zero-emissions, the demand for raw materials for crucial minerals for energy storage and fundamental components of innovative and renewable energy technologies will grow in the future, Modern Diplomacy comments.
Metals and nonmetals such as nickel (Ni), lithium (Li), cobalt (Co), magnesium (Mg), titanium (Ti), vanadium (V), platinum group metals, rare earth elements (REE), and others are critical minerals. Critical minerals are necessary for energy storage technology, wind turbines, solar PV modules, and other modern electrical technologies. Critical minerals are scarce and concentrated in only a few nations. As a result, the security of essential minerals in the supply chain for clean energy technologies has now become a worldwide strategic concern.
Today’s supply chain’s essential mineral challenges are classed as dangerous due to geological shortage, geopolitical issues, trade policies, or other considerations. The current geopolitical scenario is exemplified by the war between Russia and Ukraine, which has affected the worldwide supply of essential minerals. Nickel is a crucial mineral that is used in the batteries and storage of electric vehicles (EVs). Russia owns 10% of the world’s copper deposits and is a major producer of nickel and platinum. Because of midstream and downstream expansion, China has become a global significant critical mineral consumer and dominant player. This is due to the fact that China is the world’s leading EV battery production country and has several factories for renewable energy engine technologies.
REE are critical minerals that include the elements scandium (Sc), lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), yttrium (Y). REE will play a key role in the future, particularly in renewable energy and other industrial technologies. The US government understands, and is heavily reliant on, worldwide REE supply in order to develop military industrial technologies.
Future REE demand is expected to rise in accordance with the process and direction of the global energy transition. REE are used in a variety of applications, including nuclear energy, chemistry, catalysis, electronics, metal alloys, and optics. REE is also utilized in a variety of everyday items, including computer memory, DVD, rechargeable batteries, mobile phones, motor vehicle catalytic converters, magnets, fluorescent lights, and others. REE is used in devices such as lights and glass coatings, as well as high-tech equipment such as phosphors, lasers, magnets, batteries, and future technologies such as superconductors and hydrogen carriers.
China is the market’s leading supplier to the US defense sector. The United States government is presently extremely reliant on the security of REE supply from China. There are nations throughout the world that manufacture REE. According to USGS data for 2020, China produces the most REE in the world with 140,000 MT, followed by the United States with 38,000 MT, and Myanmar with 30,000 MT. Others produce less than 25,000 MT of REE in only a few countries.