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Rare earths in the energy transition
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Created on December 23, 2020
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Transcript
Listen to the podcast
#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 ?
LISTEN to The podcast
Metals in the energy transition
More info
7 minutes
Episode 3Rare earths
Metals in the energy transition
Podcast (in french)