How times have changed in the world of rare earth ores production and Western know how! Currently, for rare earth ores needed to propel the Green Revolution, most roads lead to China’s almost one hundred rare earth mines.
Rare Earth Elements (REE) are important in the production of many everyday technological products as well as a host of green technologies including hybrid cars, solar panels, and windmills. High-technology industries rely heavily on the availability of these 17 elements - such as scandium, yttrium, and cerium - but combination of low cost high tech products and rapid technological advances has led to an explosion of demand over the past two decades. China currently produces some 97 percent of the worldwide supply of rare earths. Deng Xiaoping, supreme leader at the time that China decided to adopt capitalist ways, once observed that the Mideast had oil, but China had rare earth elements. As the Organization of the Petroleum Exporting Countries has done with oil, China is now starting to flex its muscle.
While Harper and other western leaders entertained us by lecturing the Chinese, scoffing at their developing economy as mere catch up manufacturing efforts or scolding them for being among the world’s major polluters, they were quietly transforming their society, absorbing all the manufacturing and processing technologies which the West wanted to outsource and quietly implementing their plans to be leaders in the production of rare earth and application of the Green Revolution Technologies.
It is just too easy for Canadians and western governments, environmentalists and natural resources businesses to blame China for the current crisis of unbalances in economic trade exchanges. Some pundits blame Chinese duplicity for the theft of commercial patents and processes and its unfair monetary practices. Little is said as to how our governments, businesses and researchers aided and abetted the mass transfer of innovations and jobs to China, India and South Korea. We have paid too little attention to the export of jobs and technologies and spent too much time at a fruitless tug-of-war among resource/mining companies, environmentalists, researchers in the resource Labs vs. University research centers. During the interminable tug-of-war among western governments, businesses and environmental advocates, Canadians and Albertans have failed to meet the challenges of the tar sands, mining reclamation projects or to deal with the health issues related to major resource extraction and manufacturing.
In the West, we have quibbled, dithered and procrastinated in meeting the challenges of the Green Energy Revolution while China, India, South Korea and Malaysia transformed their societies. In Alberta and elsewhere we have failed to work collaboratively and proactively to tackle the needs to extract natural resources, rare earth ores and yet deal with the pollution and health and environmental issues. We squander billions of dollars on military toys and wasteful adventures but refuse to bring the various players and critics together to meet the challenges of the new green energy revolution. The surprisingly rapid progression from self-sufficiency prior to about 1990 to nearly complete dependence on imports from a single country today involves a number of disturbing factors. These include much lower labor and regulatory costs in China than in the United States or Canada; continued expansion of electronics and other manufacturing in Asia; the favorable number, size, and REE content of Chinese deposits at its 100 or more mines; and the ongoing environmental and regulatory problems at Mountain Pass. China now dominates world REE markets. What are American, Albertan and Canadian stakeholders prepared to do to extract rare earths or develop innovative technologies? Do we have enough incentives for our geologist’s or mining companies to take up the challenge at our park reserves or land base?
Unfortunately, even with the new green reality facing us, we refuse to stop our never ending tug-of-war about acceptable levels of pollution or global warming. In the meantime, China built a city dedicated to the investigation and production of rare earth minerals and its applications. It is expanding its research laboratories and creating post secondary institutions totally dedicated to the extraction, production and application of rare earth elements that are the whole basis of the new technologies, new sources of energy, and an answer to combat global pollution. In the 1990s, the United States was the largest rare-earths-producing country, followed by China, Australia, India, Russia, Malaysia, Brazil, Sweden, Republic of Congo, South Africa, Mozambique, Nigeria, North Korea, Sri Lanka and Thailand. Except for one primary mine at California’s Mohave Desert, most rare earth ores are now produced and exported by China. In 2002, the US shut down its only major mine for an extended period due to concerns about pollution and tailing byproducts that polluted the environment. The Chinese leaders and innovators have an authoritarian one party system with a command economy model. In its pursuit to corner the rare earths market it not opened mines in China but also in Africa. We in Canada and Alberta must bring together the various forces and institutions that are currently in a tug-of-war to deal with the new challenges to our economic existence and our quality of life.
What are these rare earth elements and why have they become so important to the Green Energy Revolution espoused by all governments, new businesses and environmentalists?
In response to the growing challenges in securing and developing rare earth applications, the Americans have created REITA: Rare Earth Industry and Technology Association. Much of the technical data in this article was gleaned from its website.
The rare-earth elements are defined as a group of chemical elements composed of scandium, yttrium, and the lanthanides. The lanthanides are a group of 15 chemically similar elements with atomic numbers 57 through 71, inclusive. Although not a lanthanide; yttrium, atomic number 39, is included in the rare earths because it often occurs with them in nature, having similar chemical properties. Scandium, atomic number 21, is also included in the group, although it typically occurs in rare- earths ores only in minor amounts because of its smaller atomic and ionic size.
The three major groups of rare-earth elements (scandium, yttrium, and the lanthanides) are extracted from production derived from the rare-earth ores; bastnasite, monazite, xenontime, and ion-adsorption clay. Bastnasite is the world's principal source of rare earth elements and is produced principally in China and the United States. Significant quantities of rare earths are also recovered from the mineral monazite. Xenotime and ion-adsorption clays account for a much smaller part of the total production but are important sources of yttrium and other heavy-group rare earths.
Domestic mine production of bastnasite during the 1970's and 1980's showed an overall increase. Most companies increased their ore and separated product capacities during the period to meet growing demand, especially since rare earths were used in the color televisions and magnets for new technological gadgets such as VCR, compact CD players and new computers. Principal uses for the rare earths are in petroleum fluid cracking catalysts; metallurgical applications; glass polishing compounds; glass additives; permanent magnets; catalytic converter materials; and television, lighting, and X-ray intensifying phosphors. Price increases until the end of the 1980s were tied primarily to adjustments for inflation and increased operating costs since the Japanese and Americans monopolized the marketing and production of the new high tech applications. In 1982, competing groups of scientists around the world found a way to combine iron and boron with a somewhat rare earth called neodymium to make extremely powerful and lightweight magnets. These magnets quickly found a market in computer hard drives, high-quality microphones and speakers, automobile starter motors, and the guidance systems of smart bombs. The Japanese government helped its business wing corner the supply chain for rare earth materials as it ramped up its storage facilities, application research options and variety of new products using these rare materials. In the meantime, Americans overhauled their military weapons and guided missile systems and applications that needed the very same rare earth elements. Gradually in the 1980's, demand shifted away from mixed rare-earths products, such as mischmetal and mixed compounds, to higher value individual high-purity products need for military and new hi-tech consumers.
Until the recent Bush economic recession, there was confidence in the West and Japan that they would dominate the world of new technologies and that rare earths needed to make these technologies would be readily available. However, American businesses in mining, research, production and manufacturing began to export manufacturing and resource processing jobs overseas as environmentalists raised this or that objection to mining and natural resource extraction, the transfer of resource operations and processes were done with a wink and a nod from our own governments. The reasoning was that if these dirty technologies and processes were exported we could simply buy the products and not worry about the objections of environmentalists. Why invest in research and development of new resource applications or processes when we could put funds in banks and increase our Heritage Fund or spend the billions needed to invest in new mining processes on new defense toys or adventures in Afghanistan?
Only in the last five years, have most western governments, university researchers or mining businesses expressed concerns about the growing cost and rising demand in rare earth elements. You see, between 1985 and 2005, American and western mining companies and car manufactures began to export jobs and technologies overseas to China, India and Malaysia. Today, France and Germany have signed major agreements to export airplane technology to China. The movement in the West to export manufacturing jobs and new technologies is due to a misguided belief that by exporting “dirty” manufacturing jobs and technologies, the vast consumer markets of Asia would open up trade opportunities for the West.
A classic case of the Western job and technology transfer is General Motors. In the 1980s, it began to manufacture magnets based on the rare earth elements but then by 1995 it decided to sell its interests in the new technology division to a consortium of three firms, two of which were a pair of Chinese companies — San Huan New Material High-Tech Inc. and China National Nonferrous Metals. Both firms were partly owned by the Chinese government. The heads of these two Chinese companies are the spouses of the first and second daughters of Deng Xiaoping, then the supreme leader of China.
In fact, Chinese leaders recognized the strategic value of its REE resources long before the days of Deng Xiaoping. With skill, patience and investment China quietly transformed the Rare Earth industry into what it is today. It also began to corner the market in its overseas mining and resource initiatives while we squandered billions on military adventures or military toys. China filled the vacuum left in Africa by the West. We can remediate the current situation but it will take a massive commitment on the part of environmentalists, government and businesses. Exporting or slowing down dirty jobs or using various public relations strategies to deceive the public is not enough. We need to harness the ingenuity of innovators, post-secondary institutions environmentalists and policy-makers. The blame games in our tug of wars among stakeholders is crippling our economic abilities to take advance of extraction of our natural resources as well as of what the rare earth applications have to offer in raising our standard of living.
The Clinton administration agreed to the GM sale of the new technology under the condition that the new owners keep the production and technology in the United States. The new Chinese owners began to buy factories in the United States including GA Powders, an Idaho firm that used government money to develop a monopoly on the production powerful methods. Then, the Chinese company shut down American production and moved everything to China. This example is taken from David Cay Johnston’s. 2007. Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (And Stick You With The Bill) (New York: 2007), pg 36-39.
It gets even better - the Americans actually helped the Chinese bolster and modernize the Chinese State Science and Technology Commission, which had the responsibility for acquiring military technology by any means. If you follow developments leading to this week’s G-20 Summit, you can learn how France, Germany, Italy, Britain and the US firms and governments are doing the very same things of exporting technologies and jobs in the hope of opening the vast markets of China, India, Malaysia and South Korea. To date, the major western governments and businesses to benefit from these types of job and technology transfers between East and West have been the ruling class and merchants of medieval Venice and 19th Century Britain. However, the city state of Venice benefited greatly in its trade relations and exchange of technologies and processes. Now, that was a rare trade imbalance that greatly favored the West.
By exporting its manufacturing and transferring the new technology, one of the keys to Green Technology is literally buried in China. This Chinese dominance has only recently received media attention since Japan began to sound the alarm about China’s monopoly in rare earth production, research and application. While the US has its Silicon Valley, China has a city and many institutions totally dedicated to extraction, research and development of rare earth materials. Japan sounded the alarm only when the Chinese stopped exporting even a gram of rare earth following the recent brouhaha due to the arrest of a Chinese fishing boat captain and the Chinese arrest of Japanese fishermen.
The Americans and Europeans are complaining about the trade imbalances with China but no leaders in industry or government want to own up to how they actively assisted in the outsourcing of jobs, technology and processing techniques. It seems that, over the centuries, out of all the western businessmen and governments have had trade missions to China only the Venetians and some Italian traders got a better deal. The Medieval Italians shared a few western gadgets and in turn brought back the spices and technologies that spawned the armaments trade (Pistoia made pistols and armaments based on powder) and Venice and other Italian cities made spaghetti and new types of “China” products for sale across Europe and beyond etc.
Now that the Japanese have sounded the alarm, three facts are bringing awareness of the looming rare earth shortage to the attention of mainstream media, resource businesses and policy-makers. First, the US, Japan and the West are now totally dependent on China for the export of these rare metals. Second, these minerals are crucial for the development of high technology research, application and new jobs, including both military and so-called green technologies.
The point I want to make is that in Canada and the West, we need to stop the tug-of-war and create collaborative and exploratory initiatives among governments, resource businesses, environmentalists and academia. We can usher in the new technology by promoting innovative policy-making, innovative green technology and rare earth research in our graduate schools, and a more open and proactive mind among our environmentalists. If we do not stop the tug-of-war we shall continue to lament about Alberta’s and Saskatchewan’s mining and tar sand initiatives. Canadians need to grapple with the new Green Technology by pressuring our federal and provincial governments to allocate funds for research at universities and private laboratories and developing or applying the new patents that can help extract gas and oil efficiently while proactively dealing with the environmental and health concerns of trappers, rural and aboriginal communities living near natural resources.
Canada has the second largest landmass and yet our governments, environmentalists, researchers and resource companies have not actively taken up the challenge to develop coordinate strategies and policies for seeking out rare earth elements and developing new applications that promote the Green Technologies Revolution. Canada spent billions of dollars on armaments that could not neutralize a $50 landmine. While the Chinese were transforming their society and cornering the market for the production, research and application of rare minerals, our Prime Minister and governments were insulting, publically scolding both China and India and even mocking their abilities to transform these ancient societies into the economic and innovative powerhouses of the 21st century.
Some Applications of the Rare Earth Elements
The diverse nuclear, metallurgical, chemical, catalytic, electrical, magnetic, and optical properties of the REE have led to an ever increasing variety of applications. These uses range from mundane (lighter flints, glass polishing) to high-tech (phosphors, lasers, magnets, batteries, magnetic refrigeration) to futuristic (high-temperature superconductivity, safe storage and transport of hydrogen for a post-hydrocarbon economy).
Many applications of REE are characterized by high specificity and high unit value. For example, color cathode-ray tubes and liquid-crystal displays used in computer monitors and televisions employ europium as the red phosphor; no substitute is known. Owing to relatively low abundance and high demand, Eu is quite valuable—$250 to $1,700/kg (for Eu2O3) over the past decade.
Fiber-optic telecommunication cables provide much greater bandwidth than the copper wires and cables they have largely replaced. Fiber-optic cables can transmit signals over long distances because they incorporate periodically spaced lengths of erbium-doped fiber that function as laser amplifiers. Er is used in these laser repeaters, despite its high cost (~$700/kg), because it alone possesses the required optical properties.
Permanent magnet technology has been revolutionized by alloys containing Nd, Sm, Gd, Dy, or Pr. Small, lightweight, high-strength REE magnets have allowed miniaturization of numerous electrical and electronic components used in appliances, audio and video equipment, computers, automobiles, communications systems, and military gear. Many recent technological innovations already taken for granted (for example, miniaturized multi-gigabyte portable disk drives and DVD drives) would not be possible without REE magnets.
Environmental applications of REE have increased markedly over the past two decades. This trend will undoubtedly continue, given growing concerns about global warming and energy efficiency. Several REE are essential constituents of both petroleum fluid cracking catalysts and automotive pollution-control catalytic converters. Use of REE magnets reduces the weight of automobiles. Widespread adoption of new energy-efficient fluorescent lamps (using Y, La, Ce, Eu, Gd, and Tb) for institutional lighting could potentially achieve reductions in U.S. carbon dioxide emissions equivalent to removing one-third of the automobiles currently on the road. Large-scale application of magnetic-refrigeration technology (described below) also could significantly reduce energy consumption and CO2 emissions.
In many applications, REE are advantageous because of their relatively low toxicity. For example, the most common types of rechargeable batteries contain either cadmium (Cd) or lead. Rechargeable lanthanum-nickel-hydride (La-Ni-H) batteries are gradually replacing Ni-Cd batteries in computer and communications applications and could eventually replace lead-acid batteries in automobiles. Although more expensive, La-Ni-H batteries offer greater energy density, better charge-discharge characteristics, and fewer environmental problems upon disposal or recycling. As another example, red and red-orange pigments made with La or Ce are superseding traditional commercial pigments containing Cd or other toxic heavy metals.
The next high-technology application of the REE to achieve maturity may be magnetic refrigeration. This new technology could be employed in refrigerators, freezers, and residential, commercial, and automotive air conditioners. Magnetic refrigeration is considerably more efficient than gas-compression refrigeration and does not require refrigerants that are flammable or toxic, deplete the Earth’s ozone layer, or contribute to global warming.
I have emphasized the need for all stakeholders in Alberta and Canada to seek out rare earth elements through a coordinated processing strategy that unites policy-makers, environmentalists and innovators in both private and public research laboratories. Also, our Education Ministries must overhaul our provincial science and CTS offerings at the high school and post-secondary levels in order to create a class of innovators who can contribute to the growing Green Energy Technologies so vital to our environmental and current employment challenges. It is this or international currency wars among nations that will close down the global economy, raise trading and trigger a currency war.