Expert explains rare earth elements — and why the Department of Defense is investing in them

Rare earth elements thread invisibly through daily life, quietly powering everything from laptops to smartphones to cars. “They’re essential ingredients for our modern lives,” said Virginia Tech mining expert Aaron Noble.

Yet up to 82 percent of rare earth elements are imported from other countries, primarily China. Increasingly anxious to find its own sources, the U.S. Department of Defense recently signed an unprecedented 10-year deal with a private company, MP Materials, that operates the only rare earth element mine in the U.S. 

Noble explained why rare earth elements are so vital, what the challenges are to home-grown mining—and what the government is trying to do about it.

Why are these rare earth elements so critical to modern technologies? 

“Rare earth elements are among the world’s ‘critical minerals,’ but they’re really a lot like cinnamon and nutmeg in a nice cake,” Noble said. “They aren't always the most well-known or highest-volume ingredients, but they are the ones that bring out all the interesting capability and flavor. By comparison, iron and aluminum are like the flour and the eggs, because by volume, they constitute most of our materials. Rare earth elements are produced in much smaller quantities, but they enable almost all of our technological capability.”

What are the main barriers to scaling up domestic mining and processing of rare earth elements?

“First, new mines are very difficult to open. In our current era, it may take 17 or more years to open a new mine, given the significant requirements for engineering, feasibility studies, permitting, financing, and other factors.  Financially, this long timeline creates significant risk for investors, which is compounded given the characteristic high volatility in rare earth element prices,” Noble said.

How unusual is the Department of Defense agreement with MP Materials, and what does it mean for rare earth mineral production in the U.S.?

“MP Materials is the only rare earth mine in the U.S. and one of just a few rare earth mines outside of China. Its primary product is neodymium-praseodymium oxide (NdPr), a key compound in permanent magnets, which are used in consumer electronics, electric motors, and various defense products. Over the last 10–15 years, the U.S. has made modest investments in mines through loan guarantees, support for research and development, and feasibility studies. But the policy intervention employed with MP Materials and direct investment is something we haven't seen before in the U.S. mining sector. It will, however, provide the price stability the mine needs.”

Related article

Partnership with Aclara aims to expand supply chain for critical minerals

About Noble

Aaron Noble is a professor and head of the Department of Mining and Minerals Engineering and interim head of the Department of Materials Science and Engineering at Virginia Tech. His research focuses on mineral processing, mineral processing, process economics, and critical mineral production. Read more here.

Interview

To schedule an interview, please contact: Margaret Ashburn at mkashburn@vt.edu or 540-529-0814.