Rare earths: Federal backing and tech advances aim to help the U.S. catch up to China

"In reality, rare earths aren't that rare, but just difficult to extract and refine. Yet they've become indispensable to modern life, embedded in everything from our smartphones and electric-vehicle motors to wind turbines and medical imaging machines. And demand is climbing. The real choke point is processing and refining a complex and environmentally sensitive step that the U.S. has lagged behind in and that China now dominates, controlling nearly 90% of global output."

"The need for high-torque, compact EV motors which use rare-earth magnets that are three to four times stronger than conventional magnets is helping drive demand. Production of these motors is soaring by roughly a third each year. Military aircraft also rely heavily on these elements; one RAND estimate suggests an F-35 contains over 900 pounds of rare-earth materials in its engines and electronics."

Rare-earth elements are relatively abundant but difficult and environmentally sensitive to extract and refine. They are essential components in smartphones, electric-vehicle motors, wind turbines, and medical imaging machines. China controls nearly 90% of global rare-earth processing and refining capacity. Demand is rising due to growth in high-torque compact EV motors that use powerful rare-earth magnets and significant military requirements, such as the F-35, which may contain over 900 pounds of rare-earth materials. The U.S. federal government is pursuing greater domestic self-sufficiency through loans, equity stakes, and public-private partnerships supporting firms like ReElement Technologies and Vulcan Elements. ReElement promotes a chromatography-based processing and recycling method that aims to be more efficient and environmentally friendly.

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