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Rare earths in the energy transition

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Created on December 23, 2020

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Transcript

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#3

Rare eaRths

Market concentration: what do the figures tell us?

What risks is facing rare earths supply ?

Who produces them ?

Where are rare earths found ?

Metals in the energy transition

Where are rare earths found ?

Who produces them ?

China

38 %

United-States

12,2 %

United-States

1,2 %

Madagascar

0,9 %

Brazil

19 %

India

6 %

Vietnam

19 %

Myanmar 10,3 %

Russia

India

1,3 %

1,4 %

62 %

China

Calculation based on: Shedd, K.B., (2020), “Mineral Commodity Summaries”, U.S. Geological Survey.

World reserves

Main producing countries

RARE EARTHS

Russia

10,4 %

Australia

Australia

9,9 %

2,8 %

Market concentration: what do the figures tell us?

Highly concentrated market for the production, moderately concentrated for the reserves

781

HHI index - Oil production

2 317

HHI index - Rare earths reserves

HHI index - Rare earths production

4 199

Calculation based on: Shedd, K.B., (2020), “Mineral Commodity Summaries”, U.S. Geological Survey.

highly concentrated market

1500 < HHI < 2500

HHI > 2500

moderately concentrated market

The HerfindahlHirschmann index (HHI) is a measure of the market concentration

Les métaux dans la transition énergétique

What risks for 2050?

For 2050

Considering the rare earth element group as a whole, no geological pressure on the resources is to be feared

Only 3,8 % of rare earths ressources (2017) consumed in a more ambitious 2°C climate scenario

Only 1,6 % of rare earths ressources (observed in 2017) consumed in a 4°C scenario

No geological risks

Employed for permanent magnets in wind turbines, but little consumed by solar and photovoltaic industries, rare earths demand should be partially driven by low-carbon technologies

Environnmental: the extraction and separation of rare earths requires vast quantities of water. China's environmental challenges and the resulting tightening of regulations could also restrict supplies by 2050.

Economic: the global market for rare earths depends on China's strategy for consumption, production and market exports;

Geostrategic: China dominates the entire value chain, from mineral production to the separation of rare earths and the production of intermediate products;

What risks to anticipate ?

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Metals in the energy transition

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7 minutes

Episode 3Rare earths

Metals in the energy transition

Podcast (in french)