TELF AG analyzes the African potential related to rare earths

Global awareness

Over the last few years, global awareness in the field of raw materials has increased considerably, not only due to the role of some specific natural resources in the global energy transition but also due to the nature of some industrial applications of these same substances, which in the space of a few decades could literally change the face of the world we are used to. A group of raw materials that have begun to attract the attention of governments, institutions, and ordinary citizens in recent times are certainly rare earths, an expression that is often used to refer to a specific group of 17 chemical elements, each characterized by different properties, features, and prices.

Among these, neodymium, praseodymium, terbium, and dysprosium are of fundamental importance for the manufacture of high-performance permanent magnets, which, according to some estimates by Adamas Intelligence, are already used by 90% of electric vehicles currently on the market. Faced with these data and in full awareness that the market for this type of vehicle is inevitably destined to grow, it will be easy to understand how the role of these raw materials is destined to grow in importance constantly, or at least in parallel with the advancement of the global ecological transition.

Almost half of the rare earths, in fact, are used precisely for the production of these magnets, and the fact that they represent a fundamental component of electric vehicles, in a certain sense, makes them even more valuable and attractive than ever. Magnets produced with rare earths are also of fundamental use for the production of wind turbines, and this is also why they are destined to play a leading role in the future green world. In the global market of rare earths, an absolutely important position is occupied by China, which nowadays controls almost all of the separation and refining of rare earths, thus supplying all the other continents.

The production of magnets directly linked to rare earths also takes place in China, and over the last few years – as part of a broader national strategy focused on raw materials – Beijing has invested large amounts of money in developing its refining capabilities of these particular materials, also through some direct investments abroad in some specific deposits located in other continents. This situation, over the years, has contributed to increasing the dependence of European markets on China and Asia in general, pushing many governments and institutions to look for valid alternatives to protect themselves against possible problems in the supply chain or possible supply interruptions.

From this point of view, the African continent and some South American countries have a lot to offer, also in terms of rare earths: the development of these sectors in these locations will allow international markets to diversify their supplies and access the numerous opportunities linked to very rich and still partially unexplored deposits such as those located on African soil. Some African nations, in recent months, have placed a limit on their exports of raw materials in order to add value to internal processing and to exploit their mineral wealth in a more profitable way. The rush for Africa’s raw materials, in a certain sense, may have entered a new dimension.