In recent years, the demand for Rare Earth Elements (REE) has been steadily increasing as the world shifts towards cleaner energy sources. These elements are crucial components in electric cars, wind turbines, and other evolving technologies. However, the production of REEs in the United States has been significantly slowed down due to regulations and environmental concerns, while China has ramped up its manufacturing with fewer workplace standards.
During the mid-1960s to mid-1980s, the United States was largely self-sufficient in manufacturing REEs. However, as the US began implementing stricter environmental regulations, domestic rare earth mining operations came to a halt, creating a market gap that other countries, including China, stepped in to fill. This shift in production has had significant environmental implications.
Mining for REEs can pollute groundwater and destroy ecosystems, while refining releases dangerous metal byproducts into the air. Moreover, China’s less restrictive labor laws have raised concerns about working conditions and safety standards in Chinese mines and manufacturing plants.
US manufacturers, in order to remain competitive, relocated their production to countries like China where they faced lower wages and less stringent standards. This has raised concerns among industry experts about the inability of US companies to compete with Chinese practices.
“There are times when we just can’t compete with what the Chinese do. The Chinese don’t have those kinds of standards,” said Marc LeVier, president of the Society for Mining, Metallurgy, and Exploration. “We have a lot of regulatory rules that we have to abide by. We have prescribed a way of dealing with the environment. We document baseline studies to demonstrate how it is before we come in and disturb the ground. And our goal is to put it back the way we found it or better.”
The United States has significant deposits of REEs in states like Idaho, Colorado, Montana, Arizona, Nevada, and Wyoming. However, government regulations have been a major obstacle to new mining and manufacturing efforts. Experts and politicians are calling for permitting reform and increased investment in the development of these critical minerals.
“We need a dramatic increase in our ability to mine and process minerals both here in the United States and around the world, in places that are our friends and our allies,” said Sen. Chris Coons, D-Del.
Efforts are underway to revive the US rare earth mining and manufacturing industry. American Rare Earths plans to begin operations in Wyoming in about five years, while U.S. Critical Materials is exploring a location in Montana. However, it could take another five to ten years of exploration before applying for mining permits. These companies are also working to expand rare earth processing in the US.
The importance of reducing dependence on China for REEs is evident, as demand is expected to rise by 40% in the next two decades with the growing popularity of wind turbines and electric cars. Industry experts emphasize the need for the US to capitalize on its own mineral resources and reduce reliance on foreign suppliers.
“I think a lot of people in the United States are waking up to that now and realizing, Well, what do you mean we’re going to open more mines in order to have an energy transition?” LeVier said. “We’ve got a great opportunity. And we can get it done with the minerals we have here in the United States.”
Overall, the environmental impact of rare earth element mining, along with China’s dominance in the market, presents challenges and opportunities for the United States. Efforts to revive the domestic industry are crucial for ensuring a sustainable and secure supply of these critical minerals.
