THELASTMILE Logistics Outside the Box
RARE EARTH ELEMENTS: What’s the Drill? While rare earths are not exactly “rare” (even the rarest of these elements, thulium, is 125 times more common than gold), these critical metals present tricky supply chain challenges and opportunities for companies to mine:
Behind the Skyrocketing Demand Rare earths are an essential part of
batteries, consumer electronics, and renewable energy) strains the REE industry. 4. No viable substitutes. Alternatives to rare earth elements are weak. While other substances can be substituted for REEs, they are usually less effective and much more expensive. Extracting Solutions Two promising supply chain solutions involve artificial intelligence (AI) and recycling: AI can enhance the efficiency of mining processes and the search for rare earth elements using predictive analytics. AI-driven technologies can enable a more precise and cost-effective identification process for rare earth deposits. Recycling presents another opportunity. Only about 1% of rare earth elements are currently recycled, compared to recycling rates of 30-70% for base metals like aluminum, copper, and lead. Rare earths are often blended with other metals in touch screens and similar products, making removal difficult and energy intensive. But companies are making inroads. For example, Colorado-based Tusaar Corp. is developing technology that enables large- scale REE recovery operations at existing U.S. mine sites. Companies that recycle rare earth metals include Hitachi Metals, Global Tungsten & Powders Corp., Osram Licht AG, Solvay SA, and Umicore. Based on some estimates, recycling could meet as much as 25% of the demand for rare earths in about 10 years. n
the high-powered magnets and rechargeable batteries in electric vehicles and renewable energy technologies. Additionally, they are crucial components in: • computer screens • cell phones and other electronics
WHAT ARE RARE EARTH ELEMENTS? Rare earth elements (REEs) are a set of 17 metallic elements on the peri- odic table—categorized as either light rare earths (light REE) or heavy rare earth elements (heavy REE). Light rare earth elements include lantha- num and cerium, and are more easily obtained. Heavy rare earth metals like thulium and erbium are much rarer and
• compact fluorescent lamps • medical imaging machines • lasers • fiber optics • pigments
• polishing powders • industrial catalysts
Supply Chain Barriers 1. Tiny amounts at a time. Rare earth elements are only found in
more expensive. Also known as: • rare earths
small quantities. While abundant in the earth’s crust, REEs are hard to find in large, mineable concentrations or without the presence of other elements. 2. China in control. China has a stranglehold on the rare earth supply chain. Not only does China hold approximately 49% of the 90 million known tons (according to the U.S. Geological Survey), it controls almost 90% of processing capacity and accounts for around 70% of the global supply of NdFeB magnet exports (permanent magnets made of neodymium, iron, and boron). 3. Demand outpaces supply. The continued rapid growth of REE-dependent industries (EV
• rare earth metals • rare earth oxides
$10-BILLION GLOBAL MARKET BY 2034 The global rare earth metals market size is estimated at $3.75 billion in 2024 and is anticipated to reach around $9.91 billion by 2034, growing at a CAGR of 10.21% over the forecast period 2025 to 2034, according to Precedence Research.
Sources: ThomasNet, Precedence Research, Forbes
88 Inbound Logistics • June 2025
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