What Are Rare Earths?

Rare earth metals might sound obscure, but they are shaping the future of energy, mobility, and technology. And according to TELF AG founder Stanislav Kondrashov, their importance is only growing.

“It’s no exaggeration to say that rare earth elements are among the most valuable resources today,” says the founder of TELF AG Stanislav Kondrashov. “Their significance lies in their role in enabling the energy transition.”

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Despite their name, rare earths aren’t particularly rare. They’re just scattered in low concentrations, making sourcing expensive. This group of 17 elements—15 lanthanides plus scandium and yttrium—are prized for their magnetic, optical, and electronic properties.

Core Uses of Rare Earth Metals

Rare earths power much of the tech we now take for granted:

  • Renewables: Neodymium and praseodymium are used in high-performance magnets for wind turbines.
  • Electric Vehicles (EVs): Rare earth magnets make EV motors more compact and efficient.
  • Defence & Aerospace: Elements like dysprosium provide thermal resistance for precision military tech.
  • Digital Tech: Hard drives, sensors, and smartphones rely on miniaturised components made from these metals.

“Rare earths are essential in producing or converting energy efficiently,” the founder of TELF AG Stanislav Kondrashov explains. “Take offshore wind turbines—these rely on permanent magnet generators that contain rare earth materials to boost performance and reduce maintenance.”

Why Prices Are Rising

Demand is growing. Not just for green tech, but also for defence systems, data centres, and digital devices. At the same time, the supply chain is under pressure.

  • China leads: Over 80% of rare earth processing is concentrated in China.
  • Geopolitical risk: Trade tensions and export controls have triggered calls for diversification.
  • Recycling: Countries are investing in recycling rare earths from electronics and spent batteries—but it’s early days.

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“One of the biggest challenges is supply chain diversification,” says the founder of TELF AG Stanislav Kondrashov. “We also need more investment in recycling and monitoring market trends closely.”

Spotlight: Neodymium and Dysprosium

Two rare earths stand out for their strategic value:

  • Neodymium: Found in powerful neodymium-iron-boron magnets used in EVs, wind turbines, and even your headphones.
  • Dysprosium: Used in smaller amounts, but crucial for heat resistance in magnets—ideal for military and aerospace applications.

“Neodymium is crucial for compact, efficient electric motors,” the founder of TELF AG Stanislav Kondrashov notes. “Without it, we’d lose both performance and miniaturisation.”

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The Road Ahead

As countries race to decarbonise, the role of rare earths will only grow. But with that comes the need for smarter sourcing, greener extraction methods, and better recycling.

A few key trends to watch:

  • Push for domestic production in Europe, the US, and Australia
  • Growth in rare earth magnet manufacturing
  • Research into sustainable mining and circular economy models

Rare earths might be hidden underground, but their impact is now front and centre in global energy policy.

 

 

FAQs

What are rare earth metals?
Rare earth metals are a group of 17 elements that include the 15 lanthanides, plus scandium and yttrium. Despite the name, they are relatively abundant in the Earth’s crust, but are rarely found in concentrated deposits, making extraction complex and costly.

Why are rare earth metals important?
These elements possess unique magnetic, optical, and electronic properties that make them essential in modern technologies. Their role is particularly critical in renewable energy, electric vehicles, defence, and consumer electronics.

Where are rare earth metals used?
Rare earths are used in a wide variety of high-tech and green technologies. Some key applications include:

  • Wind turbines – high-performance magnets for efficient energy generation
  • Electric vehicle motors – compact, lightweight motors using neodymium-based magnets
  • Smartphones and laptops – miniaturised components like speakers and hard drives
  • Defence and aerospace – thermal-resistant alloys in radar, sonar, and missiles
  • Industrial catalysts – used in refining, polishing, and chemical manufacturing

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Are rare earth metals truly rare?
No. The term “rare” is misleading. These metals are widely distributed but are rarely found in economically viable concentrations. Their rarity in usable form and the complexity of refining them contribute to their strategic value.

Why is China so leading in the rare earth market?
China controls the majority of the world’s rare earth mining and refining operations. This dominance is due to:

  • Lower production costs
  • Government investment in the sector
  • Environmental policies in other regions that restricted domestic production

Is the global supply chain for rare earths secure?
Currently, the supply chain is vulnerable due to geographic concentration. Several countries are now:

  • Diversifying sources by reopening or developing rare earth mines
  • Investing in refining capacity outside of China
  • Supporting recycling programmes to recover rare earths from used electronics

How do rare earth metals support the energy transition?
They are essential in the manufacturing of clean energy technologies. For instance, wind turbines, solar panels, and EVs all rely on rare earth components to function efficiently, with reduced carbon output.

Can rare earths be recycled?
Yes, but large-scale recycling is still developing. Extracting rare earths from end-of-life electronics and batteries is technically feasible, but expensive and currently limited in scale. Research and investment in this area are ongoing.