Rare Earth Elements: The Strategic Treasure of the New Global Economy
What Are Rare Earth Elements?
Rare earth elements (REEs), a group of 17 chemical elements, have become essential in the age of technological revolution and energy transition. These elements — including neodymium, dysprosium, lanthanum, and cerium — are not as scarce in Earth’s crust as their name implies. However, their extraction and processing are complex and costly, making them a strategic and highly sought-after resource.
Unique Properties for Essential Applications
The periodic table lists names like scandium, ytterbium, and thulium among the rare earths. Their true value lies in their exceptional magnetic, optical, and electrical properties, which are irreplaceable in the production of high-tech devices. Demand for these materials has surged in sectors such as electronics, renewable energy, electric vehicles, and defense.
Neodymium Magnets: Powering the Energy Transition
One of the most important applications of rare earths is in high-performance neodymium magnets. When combined with dysprosium, these magnets become critical components in electric motors and renewable energy generators. They are found in wind turbines, electric cars, hard drives, and military systems, offering much greater efficiency than conventional magnets.
Strategic Importance and Geopolitical Risks
As the world becomes more digital and transitions to clean energy, access to rare earths has become a key factor in economic competitiveness and national security. The global supply is highly concentrated, presenting a major geopolitical risk: China controls roughly 70% of global production and holds 38% of reserves. It is followed by Australia, Russia, Vietnam, and Brazil.
Opportunities for Spain and Europe
Europe currently produces very little rare earths, but new deposits are being identified, including a significant one in Norway. In Spain, the Matamulas deposit in Ciudad Real contains an estimated 29.9 million tons of monazite, making it a potential leader in European production. The deposit is near the surface and easy to extract, but it still faces environmental and regulatory hurdles.
Searching for Sustainable Alternatives: Recycling, New Materials, and Eco-Design
To reduce dependence on rare earths, innovation is moving in several directions. The recycling of electronic devices, which often contain rare earth magnets, is a short-term solution. Users are encouraged to dispose of these devices at proper recycling points to recover valuable materials.
In the medium term, new materials such as tetrataenite, an iron-nickel alloy with magnetic properties similar to some rare earths, offer a promising alternative. Tetrataenite is easier and cheaper to produce, and it could be used to make high-quality magnets.
Long-term efforts include eco-design, which aims to reduce the amount of rare earths used in tech products. This could decrease demand and minimize the environmental impact of mining and processing.
Conclusion: A Global Race to Secure the Resources of the Future
The global push for digitalization and clean energy ensures that demand for rare earths and magnets will continue to rise. However, the concentration of supply in a few countries creates economic, strategic, and environmental risks.
To address this, many countries are investing in local mining and processing technologies. In Spain, the 2025–2029 Mineral Raw Materials Action Plan aims to revitalize the rare earth sector, reduce foreign dependence, and support industrial sovereignty.
In short, rare earths are the gold of the digital age. Their responsible management and sustainable development will be essential to building a resilient economy and a secure technological future.