China presently produces 60% of the worlds rare earth elements and 85% of processing those minerals. These roughly 17 minerals are used in many of our military systems, our cell phones, batteries, catalytic converters. It’s an issue that reveals a vulnerability within the United States’ supply chain and includes national security risks, considering Washington’s strained relations with Beijing. The technologies that rely on these elements are projected to skyrocket, both industry and government are investing in methods that aim to secure a domestic rare earth supply chain. The commercial and defense technologies include highly specialized magnets used in electric vehicles, jet fighters and drones.
Now, AI systems are quickly playing an essential role in finding new sources of rare earth elements outside China. Machine learning models are analyzing vast amounts of geologica data to predict the locations of mineral deposits. AI algorithms can process diverse datasets including geophysical, geochemical, geological, and geomorphological information to generate detailed maps and models of potential REE-rich zones. Satellite imagery and hyperspectral data can be analyzed using computer vision and AI to identify promising exploration sites over large areas more efficiently.
Increased discovery rates: AI-powered systems can dramatically increase the probability of successful mineral discovery, potentially by up to 100 times compared to traditional methods. These advances could not be engaged too soon. It is expected that the new administration will engage new tariffs on China and that in return, China will cut off the supply of rare earth minerals. However, with the help of our Government and an applied emphasis, these minerals could be located and processed to remove our reliance on China for them.Despite being labeled as “rare,” the 17 different elements known as rare earths are relatively abundant in the Earth’s crust. Once extracted from mines, theyt must be separated from other minerals. Then rare earths are individually separated into oxides.
One company in the US, Tusaar plans to build a recycling plant in Denver in 2025 to extract rare earth minerals from products that might otherwise be tossed into landfills. The U.S. Department of Defense has provided the initial funding. Khanna says that the technologies it uses are economically and energy efficient. Moreover, they give American industry a direct line to critical rare earths, allowing it to bypass China for some needs.
Recently, a South Korean mine reopened after two decades of disuse, with the potential to be a reliable source of a rare metal critical for modern militaries that China has controlled almost exclusively. Packing high energy density, tungsten penetrates targets more effectively than other metals, making it essential for weapons like armor-piercing rounds.Thanks to its durability, tungsten also has a wide range of civilian applications, from industrial cutting tools and light bulbs to electric vehicle batteries and microchips produced by businesses like Taiwan Semiconductor Manufacturing Company and Nvidia.
Myanmar mined 38,000 metric tons of rare earths in 2023. This was an increase of more than 216 percent from the 12,000 MT Myanmar produced in 2022, as supply was down due to a temporary halt in production associated with the turmoil following the 2021 military coup.
In 2023, Australia’s rare earths production came in at 18,000 metric tons, on par with 2022 after rising steadily for the last few years. representing more than 5 percent of the global total. That’s compared to the 24,000 MT produced in 2021. The country holds the world’s sixth largest rare earths reserves, and is poised to increase its output. According to the IEA, Australia’s share of global rare earth elements production is projected to rise to 18 percent by 2030.
Australian company Northern Minerals (ASX:NTU,OTC Pink:NOURF) is undertaking a definitive feasibility study for its Browns Range mining and process plant to process, which is due for completion in Q4 2024 with a final investment decision targeted for Q1 2025. Its main products will be terbium and dysprosium.
These nations and others may enhance Washington’s efforts to diversify critical supply chains away from countries it considers adversarial.
Given the urgent need and the National Security issues, our government’s support of this advanced us of AI would lessen the time frame before we can rely on our own reserves of these rare earth elements.
Jeff Newman JD MBA, represents whistleblowers nationwide relating to Medicare and Medicaid fraud, under the state and federal False Claims Act (Qui Tam) and corporate whistleblowers in major claims under the SEC, CFTC and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
