Without rare earths, many electric motors, wind turbines, heat pumps and digital devices would not work. They are regarded as key raw materials for the energy and mobility transition. But their extraction leaves behind destroyed soils, polluted rivers and communities that can no longer use their water and fields.
Our profile "Rare Earths - Between Future Technologies and Destruction" shows why these raw materials are so politically contested, what ecological and social consequences their extraction has and what measures are necessary for a just raw material transition.
You can download the profile here for free.
What are rare earths?
Rare earths are a group of 17 chemical elements. They are divided into light and heavy rare earths. They are not really ‘rare’, but they rarely occur in such a high concentration that their degradation is economical.
In addition: Rare earths are usually not isolated. They are involved in complex mineral compounds and are often associated with radioactive substances such as uranium or thorium. Their extraction and separation is therefore technically complex, energy-intensive and ecologically risky.
The production and especially the further processing are globally strongly concentrated on China. Europe has potential deposits, for example in Sweden, Finland or Greenland. However, economically relevant production has not yet taken place there.
Why are rare earths so important?
Particularly important for the energy and mobility transition are neodymium, praseodymium, dysprosium and terbium. They are mainly used for permanent magnets.
These magnets are used in electric motors, generators and sensors. In electric cars, they ensure that the engines accelerate large, heavy vehicles faster. In wind turbines, they enable efficient generators. Heat pumps, household appliances and digital technology also depend on such components.
Where are rare earths used?
The most important field of application for magnetic rare earths is the automotive industry. About 40 percent of permanent magnets go into this sector. They are installed in more than 95 percent of all electric cars.
Other important applications include wind turbines, heat pumps, industrial plants, sensors, electronics and military applications. The demand is therefore growing not only through the energy transition, but also through digitization, armaments and industrial high technology.
China's dominance in the global market
China controls large parts of extraction and almost all processing of certain rare earths. The dependency is particularly high for the elements that are important for permanent magnets.
This makes rare earths a geopolitically sensitive raw material. Those with processing capacities not only control supply chains, but also key building blocks for industrial, energy and security policy.
This poses a fundamental problem for Europe: Raw materials policy is often narrowed down to security of supply. This is not just about securing more raw materials. It is also crucial to reduce consumption, close cycles and enforce human rights along supply chains.
What makes dismantling so dangerous?
The degradation of heavy rare earths is often carried out by chemical leaching. Chemicals are pumped into the soil to release the metals from clay-containing deposits.
Damaged soils, contaminated water and settling basins with toxic residues remain. Acids, heavy metals and radioactive substances can enter rivers, groundwater and agricultural land.
For local people, this means: Water sources become useless, fields lose their fertility, fishing and agriculture break away. The raw material that drives green technologies elsewhere often destroys the very livelihoods that need to be protected in the mining regions.
Myanmar: Rare earths from conflict regions
Myanmar has become a central country of origin for heavy rare earths in recent years. The border regions of Kachin and Shan are particularly affected.
There, dismantling has expanded sharply since the 2010s. Chemical leaching is used in many areas. The consequences are massive deforestation, polluted watercourses and destroyed arable land.
Many local communities can no longer use rivers and streams as a source of drinking water. Small farmers are losing their livelihoods. Some people work in dangerous conditions in the mines because other sources of income have disappeared.
While the social and environmental costs remain on the ground, armed groups, commodity traders and international industries benefit from the trade in rare earths.
Social and health consequences
Rare earth mining is not just an environmental problem. It changes entire regions.
People report respiratory problems, burning throat, and contact with chemicals. Communities are losing access to clean water. Agricultural land becomes useless. In addition, there are social conflicts, precarious working conditions and a growing dependence on mining.
Rural and indigenous communities are particularly hard hit, with little impact on permits, supply chains or consumer industries.
Recycling: Great potential, hardly used
In the EU, less than 1% of rare earths are recycled. This is an alarm signal politically and industrially.
The technical hurdles are high: Rare earths are often only found in small quantities in products. They are difficult to separate, difficult to recover and so far often cheaper to dismantle than to recycle.
However, e-waste, old motors, magnets and industrial waste could become important sources of raw materials in the future. This requires binding requirements: recyclable product design, better collection structures, dismantling obligations, modern separation processes and clear targets for the use of recycled materials.
Why Less Consumption is Crucial
More recycling alone will not be enough. As ever larger cars, ever more digital devices and ever new high-performance applications continue to drive demand, the problem only shifts.
Less mining starts with less raw material consumption. Particularly in the transport sector, there is great potential: Smaller and lighter vehicles, fewer private cars, more public transport, sharing offers and more durable products can reduce the pressure on assisted regions.
A fair raw materials policy must therefore not only ask where rare earths come from. It must also ask what they are used for – and whether this use is socially necessary.
What is Politically Necessary
The energy transition must not take place at the expense of human rights, water, soil and biodiversity. Security of supply requires clear ecological and social guidelines.
Policy makers and companies must take responsibility along the entire supply chain: from dismantling and processing to use in cars, wind turbines, heat pumps and electronics.
Our demands
Securing the rights of local communities
Affected communities must be involved in decisions on mining projects. This includes transparent procedures, access to information, effective complaint mechanisms and respect for indigenous rights.
Making environmental and social standards binding
Rare earth mining must be subject to strict environmental and social standards. Companies must comply with human rights and environmental due diligence obligations along the entire supply chain. Voluntary commitments are not enough.
Strengthening the circular economy
Rare earths must be recovered from old products. This requires better collection structures, recyclable design, dismantling obligations, investments in recycling technologies and binding targets for the use of recycled materials.
Reducing raw material consumption
Policy measures must significantly reduce the demand for primary raw materials. Particularly resource-intensive applications should be questioned. Smaller vehicles, durable products, repair, reuse and a traffic turnaround can significantly reduce the need for rare earths and other critical raw materials.
Press & Background
For interviews, audio and data please contact:
Adrian Bornmann
Speaker for press and public relations
Authors
Maike Buckemüller
Michael Reckordt
Policy Officer for Raw Materials
