Why Are Rare Earths Considered More Valuable?

In the last 20 years, the importance of rare earth elements has skyrocketed due to three main factore:

High demand: An increasing global demand for new products and emerging technologies that use rare earth elements(REE).
Uncertain supply: China, the world's largest source of rare earth materials at the present time, has begun to reduce quotas on its REE exports, combat smuggling and also close some of its major mines. Currently, China provides over 90 percent of the world's total output of rare earths.
No substitutions: The unique electronic, optical and magnetic characteristics of these elements cannot be matched by any other metals or synthetic substitutes.

Combined, these three factors have raised a growing level of concern that other rare earth mining sites need to be found outside of China, explored and brought online in short order.

There are 17 classified rare earth elements and prices vary widely with heavy rare earths historically commanding significantly higher prices than light rare earths. Several of these elements can fetch extremely high prices depending on their scarcity and commercial applications. Europium, terbium and dysprosium have been recently priced in the range of $1,400 - $3,500/kg. HREE prices are likely to remain significantly higher than recent historical levels, given the fact that few new sources of supply for these materials will be available before 2015.

Less expensive rare earths like lanthanum and cerium (the prices of which currently hover around US $20-30/kg) are extensively used in modern technology, such as the manufacturing of catalytic converters that automobiles require.

Many of the high tech devices enjoyed by the western world need rare earths to work. Consumer smartphones, TVs, batteries, computers, medical equipment, even some of the critical components in nuclear reactors depend on rare earth elements for their operation.

This widespread need for REE in global manufacturing ensures a constant commercial hunger for these metals for the foreseeable future. While prices have been dropping since peaking in July 2011, they still remain well above historical levels.

                


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