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Heavy rare earths, permanent magnets, and renewable energies: An imminent crisis

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  • Smith Stegen, Karen

Abstract

This article sounds the alarm that a significant build-out of efficient lighting and renewable energy technologies may be endangered by shortages of rare earths and rare earth permanent magnets. At the moment, China is the predominant supplier of both and its recent rare earth industrial policies combined with its own growing demand for rare earths have caused widespread concern. To diversify supplies, new mining—outside of China—is needed. But what many observers of the “rare earth problem” overlook is that China also dominates in (1) the processing of rare earths, particularly the less abundant heavy rare earths, and (2) the supply chains for permanent magnets. Heavy rare earths and permanent magnets are critical for many renewable energy technologies, and it will require decades to develop new non-Chinese deposits, processing capacity, and supply chains. This article clarifies several misconceptions, evaluates frequently proposed solutions, and urges policy makers outside of China to undertake measures to avert a crisis, such as greater support for research and development and for the cultivation of intellectual capital.

Suggested Citation

  • Smith Stegen, Karen, 2015. "Heavy rare earths, permanent magnets, and renewable energies: An imminent crisis," Energy Policy, Elsevier, vol. 79(C), pages 1-8.
    • Handle: RePEc:eee:enepol:v:79:y:2015:i:c:p:1-8
    DOI: 10.1016/j.enpol.2014.12.015
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    References listed on IDEAS

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    1. Geels, Frank W., 2010. "Ontologies, socio-technical transitions (to sustainability), and the multi-level perspective," Research Policy, Elsevier, vol. 39(4), pages 495-510, May.
    2. Smith Stegen, Karen & Seel, Matthias, 2013. "The winds of change: How wind firms assess Germany's energy transition," Energy Policy, Elsevier, vol. 61(C), pages 1481-1489.
    3. Golev, Artem & Scott, Margaretha & Erskine, Peter D. & Ali, Saleem H. & Ballantyne, Grant R., 2014. "Rare earths supply chains: Current status, constraints and opportunities," Resources Policy, Elsevier, vol. 41(C), pages 52-59.
    4. Robert Looney, 2011. "Recent Developments on the Rare Earth Front," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 12(1), pages 47-78, January.
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