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One of the issues that will become crucial in the development of the economies of EU member states in the coming decades is the supply of rare earths. REE, an acronym for Rare Earth Metals, concerns a group of 17 elements belonging to the chemical family of metals, all discovered between 1839 and 1900 (the last one, Promethium, was artificially created in 1947). Without listing them all, it is enough to know that the term ‘rare’ does not refer to their scarcity on the planet, but rather to the difficulty in identifying them and the complexities involved in extracting and processing them. These lands are also essential for a large part of the challenges that await us in the near future, since they are essential elements for the economy related to renewable energy, rechargeable batteries, the military industry, aerospace, and even the manufacture of the electronic components contained in the devices we use every day.
RARE EARTHS IN THE WORLD
The sensitive fields in which these elements are used makes it clear that the possession of deposits becomes an essential asset for a nation’s industrial development. Figures for 2021 released by the United States Geological Survey (https://pubs.usgs.gov/periodicals/mcs2022/mcs2022-rare-earths.pdf) make clear the impact China will have in terms of mining, processing and exporting these important raw materials. In fact, out of the estimated 125 million tonnes, China has about 35.2% (a good 44 million tonnes). This is followed by Vietnam (17.6%), Russia and Brazil (16.8%), and finally India with 5.6%. China also ranks as the world’s largest producer of rare earth elements with 60.6% of production, compared to 15.5% for the US.
THE EUROPEAN SITUATION
It is natural that such a preponderant imbalance towards China has also forced the European Union to rely on the East for the supply of these minerals. This is no small problem, especially if one looks at the international geopolitical situation and the instabilities that make relations with the East increasingly difficult. On 12 January 2023, LKAB, one of Sweden’s leading mining companies, announced that it had identified what could be the largest rare earth deposit ever found in Europe. The site has been named ‘Per Geijer’ (after a prominent Swedish geologist) and is located near Kiruma, a small Lappish town beyond the Arctic Circle. Studies carried out (and made public so far) would show the presence of over 400 million tonnes of resources and over one million tonnes of rare earth metals. While this discovery is good news, it could take up to fifteen years before this could really lead to a decrease in Europe’s dependence on China for REE imports.
SECURING A FUTURE FOR EUROPEAN INDUSTRY
The problem is that European industry needs these materials now: with the ongoing ecological and digital transition, the vulnerability of member countries must be overcome. What must be sought is a European industry that is technologically advanced and autonomous. Unfortunately, it is undeniable that Europe has been left behind both by the global pandemic and, soon afterwards, by the critical issues related to the conflict in Ukraine. The absence of alternative supply channels for rare raw materials (as was also outlined in the European Commission’s ‘Action Plan on Critical Raw Materials’ in 2020) has made the need to achieve greater technological independence and sovereignty within the borders of the European Union even more evident. In this sense, Italy’s Mattei Plan can be a strong point, together with the Global Gateway, for the realisation of strategic partnerships with non-EU countries on the supply of rare earths. All this together with an increase in the extraction capacities of member states and collaboration in the most sensitive industrial sectors.
KEEPING UP WITH THE CHALLENGES
It is clear that looking at the challenges ahead, the outlook is anything but rosy. Suffice it to say that the European Union is intent on achieving climate neutrality by 2025 with the production of energy from renewable sources also through the objectives of the ‘RePowerEU’ package. These initiatives will see a growing demand for rare earths, and the question we must be prepared to answer today is simple: will we have sufficient resources to support the energy and digital transition?