As the consequences of climate change are increasingly visible and harmful to the environment, many sectors are trying to move quickly towards a greener economy. The accelerated rate at which companies have to comply with environmentally safe processes and materials requires the implementation of new technologies like solar panels, wind turbines, rechargeable batteries, and more.
The production of such technology requires large quantities of elements such as lithium, cobalt, and rare earth elements. The latter is a collection of 17 metallic elements, including 15 lanthanides (consecutive elements of the periodic table, from lanthanum to lutetium, atomic numbers 57 through 71), scandium, and yttrium. Rare earth elements, also referred to as rare earths, are used in many high-tech products and applications, including mobile phones, hard drives, computer and TV screens, and electric vehicles. Furthermore, they are employed in the production of systems like lasers, radars, sonar systems, and electronic displays used for defense applications.
According to a 2021 United States Geological Survey, rare earths are considered critical minerals, and most of them cannot be replaced by any other elements to produce current technology. The survey also highlighted how the United States relies heavily on the import of rare earths and lithium and cobalt. While the U.S mines part of its lithium and rare earths requirements domestically, much of its lithium ore is still processed abroad and processed rare earth elements are entirely imported.
The number one producer of rare earths elements is China, which in 2021 had a share of 60 percent of global rare earths mining. While this share has fallen since 2010, China is still a leading producer. Furthermore, China is also one of the world’s leading cobalt processors, a fundamental element for stabilizing lithium-ion rechargeable batteries in electric vehicles (EV). Much of the raw cobalt ore is mined in the Democratic Republic of Congo - approximately 70% - before it is exported to China.
Although technological advancements have allowed producers to produce cobalt-free and reduced cobalt lithium-ion batteries, this is not yet the standard. Clean energy requires high quantities of cobalt, and the demand is expected to increase as much as six times by 2040.
As for lithium, its demand is expected to increase 13 times during the same period. However, for the U.S., this mineral is more readily available since it is also mined domestically. Furthermore, two of the leading lithium producers are Chile and Australia, both countries that have a stable alliance with the U.S. Nevertheless, China still processes around 60 percent of the global lithium.
China is not only a leader in the processing of rare earths, lithium, and cobalt but also in the production of goods such as lithium-ion batteries. In 2019, 72 percent of the world’s lithium-ion batteries were produced in China, as opposed to 9 percent in the U.S. Furthermore, China produces roughly 70 percent of solar panels and 95 percent of solar wafers.
To ensure the transition to a green economy proceeds as needed, the U.S. should adopt a series of measures to limit the reliance on climate goods produced in China. The first step is to increase the domestic production of electric vehicle batteries, solar panels, wind turbines, and other similar goods. Secondly, the U.S. should maintain a mutually beneficial relationship with China while working with other international suppliers.
Finally, recycling minerals can present a great opportunity, and it is still a nascent industry. According to International Energy Agency research, recycling could cover around 0.6 percent of lithium demand by 2030 and as much as 6.5 percent by 2040. By implementing policies that establish clear yet achievable targets for the use of recycled minerals, the entire recycling industry could see faster progress.
The production of such technology requires large quantities of elements such as lithium, cobalt, and rare earth elements. The latter is a collection of 17 metallic elements, including 15 lanthanides (consecutive elements of the periodic table, from lanthanum to lutetium, atomic numbers 57 through 71), scandium, and yttrium. Rare earth elements, also referred to as rare earths, are used in many high-tech products and applications, including mobile phones, hard drives, computer and TV screens, and electric vehicles. Furthermore, they are employed in the production of systems like lasers, radars, sonar systems, and electronic displays used for defense applications.
According to a 2021 United States Geological Survey, rare earths are considered critical minerals, and most of them cannot be replaced by any other elements to produce current technology. The survey also highlighted how the United States relies heavily on the import of rare earths and lithium and cobalt. While the U.S mines part of its lithium and rare earths requirements domestically, much of its lithium ore is still processed abroad and processed rare earth elements are entirely imported.
The number one producer of rare earths elements is China, which in 2021 had a share of 60 percent of global rare earths mining. While this share has fallen since 2010, China is still a leading producer. Furthermore, China is also one of the world’s leading cobalt processors, a fundamental element for stabilizing lithium-ion rechargeable batteries in electric vehicles (EV). Much of the raw cobalt ore is mined in the Democratic Republic of Congo - approximately 70% - before it is exported to China.
Although technological advancements have allowed producers to produce cobalt-free and reduced cobalt lithium-ion batteries, this is not yet the standard. Clean energy requires high quantities of cobalt, and the demand is expected to increase as much as six times by 2040.
As for lithium, its demand is expected to increase 13 times during the same period. However, for the U.S., this mineral is more readily available since it is also mined domestically. Furthermore, two of the leading lithium producers are Chile and Australia, both countries that have a stable alliance with the U.S. Nevertheless, China still processes around 60 percent of the global lithium.
China is not only a leader in the processing of rare earths, lithium, and cobalt but also in the production of goods such as lithium-ion batteries. In 2019, 72 percent of the world’s lithium-ion batteries were produced in China, as opposed to 9 percent in the U.S. Furthermore, China produces roughly 70 percent of solar panels and 95 percent of solar wafers.
To ensure the transition to a green economy proceeds as needed, the U.S. should adopt a series of measures to limit the reliance on climate goods produced in China. The first step is to increase the domestic production of electric vehicle batteries, solar panels, wind turbines, and other similar goods. Secondly, the U.S. should maintain a mutually beneficial relationship with China while working with other international suppliers.
Finally, recycling minerals can present a great opportunity, and it is still a nascent industry. According to International Energy Agency research, recycling could cover around 0.6 percent of lithium demand by 2030 and as much as 6.5 percent by 2040. By implementing policies that establish clear yet achievable targets for the use of recycled minerals, the entire recycling industry could see faster progress.
