Rare Metals could trigger next trade war

Written by Emilio Godoy / Inter Press Service

MEXICO CITY—Used in electric car motors and wind turbines, neodymium, a “rare earth metal,” is at the epicenter of the race between wealthy and emerging nations to create green technologies, while poorer countries appear to be relegated to spectator status.

Neodymium is a lanthanoid, at position 60 on the periodic table of elements for the number of atoms in a single molecule. Its production and wide range of uses reflect the quiet competition over raw materials in the area of green technologies.

José Luis Giordano, associate professor of engineering at the University of Talca in Chile, noted in an interview that there is a battle between the United States, China and Japan over neodymium, samarium and praseodymium, over ceramic superconductors, and for alternatives to these materials, still in the experimental stages.

These elements belong to Group 15 of rare metals whose unique properties—like their great magnetic capacity and resistance to high temperatures—make them indispensable for a wide range of new technologies that the world needs urgently to confront global problems like climate change.

Magnets made from neodymium help generate energy in electric vehicles and the rotation of wind turbines.

So far there are no viable alternatives to the rare metals. Substitution of neodymium is possible in wind turbines. The rare metal reduces the weight of the magnet mechanism, which will be heavier using other metals. Heavier turbines need stronger foundations, which means fortified concrete and higher costs.

Neodymium magnets have a magnetic force nine times stronger than conventional magnets.

The most similar alternatives, but even more costly, are made from samarium and cobalt or from samarium, praseodymium, cobalt and iron, Chilean expert Giordano said.

In this field, “without incentives and rewards for basic technological research and development, even if it has natural reserves, a country is condemned to being an importer,” he said. “Countries aren’t wealthy due to their natural resources, but because they have invested in R&D.”

Lifton, meanwhile, noted that it is likely there will be more economic advances in both magnets and batteries, due to the limits of neodymium and lithium supplies, and that there could be a return to steel and aluminum if demand for those technologies keeps growing.

Research has been under way since 1987 on semiconductors and ultraconductors of electricity, made from polymers, but none has been produced on a massive scale. They are characterized by their high capacity to transmit energy, durability and heat resistance.

Unless production of green technologies is supported outside of China by new mining in North America, Africa and Australia, the only place to manufacture them will be China, predicts Lifton, adding that if China decides not to export those rare metals, there won’t be any other place to obtain them.

**Rare metals like silver have industrial applications that is causing supplies to be depleted. Gold is hoarded while silver is used up, when you invest in something that is used up and the supply tightens then prices tend to go up.