Rare-earth metals shortage could slow green innovation

Neodymium, lanthanum, dysprosium. They don't have the same ring to them as gold and platinum, but they could very well be the high-cost, rare elements that define our environmental future. Neodymium, for example is essential to electric motors in hybrid and full-electric vehicles and is also used in the generators in wind and tidal turbines.

It's a sign of the times. As we continue to use our brains to figure out better ways to create and use electricity, we need more and more rare metals that, ten years ago, were hardly used at all. Indeed, in the next few years, demand for rare earth metals will likely outstrip supply by about 40,000 tons. Unless, of course, a lot of new supply comes online very quickly.

Most of the world's rare-earth metals come from China, but China is starting to use more and more of its supply while exporting less to the rest of the world. Toyota, with their 70% market share in hybrid vehicles, is starting to get worried. Every Prius electric engine uses 1 kg of neodymium and every Prius battery uses 10 kg of lanthanum. Of course, those numbers will get higher as Toyota expands the range of the car.

Different batteries with different chemistries might use more or less of certain metals, but there's no doubt that new sources are going to have to be opened up for production of these rare metals. Already mines in Canada and California are slated to open or expand for the production of rare-earth metals. Of course, that's mixed news for the environment. Mining is, of course, extremely destructive to local areas, but the elements being mined could lead to a significantly more stable planet overall. Of course, the choice is likely one our economy will make for us.

One can hope that these problems will be solved the same way they were created, with our brains, and not with our mining rigs. Battery chemistry that uses no lanthanum isn't far off. Though it's hard to imagine an engine or generator that doesn't use neodymium's magnetic properties. But one can always hope.

Via Reuters