Circular Economy Strategies Offer Path to Sustainable Rare Earth Element Supply, Study Finds

In a groundbreaking study led by Newcastle University, researchers unveil the potential of circular economy strategies in revolutionizing the global supply chains of critical rare earth elements (REEs) such as neodymium, dysprosium, and terbium. The study, published in Nature Geoscience, demonstrates how embracing circular economy principles can significantly enhance the low-carbon transition while ensuring the longevity of REE resources.

REEs, vital for low-carbon energy and transportation technologies, face inherent scarcity and supply chain challenges. However, the study reveals that implementing circular economy tactics could lead to a substantial 701 kt increase in secondary supply and a corresponding 2,306 kt decrease in demand over the next three decades.

Professor Oliver Heidrich, co-author of the study, underscores the importance of circular economy strategies in addressing geopolitical dynamics and achieving climate goals. He emphasizes that the adoption of reduction, substitution, reuse, and recycling can reshape global REE supply chains, reducing reliance on conventional mining and fostering closed-loop systems, particularly in regions like the EU.

The integrated model developed by the international research team, including institutions like the Chinese Academy of Sciences and Leiden University, offers insights into the intricate connections between REEs and climate commitments. By considering in-ground and in-use stocks across different regions and climate scenarios, the study sheds light on the geographical shifts in REE supply and demand from 2001 to 2050.

The study’s findings not only highlight the disparity between reserves, supply, and demand but also underscore the critical role of circular economy strategies in achieving net-zero emission targets. Moreover, it provides a scientific basis for international cooperation in promoting circular economy practices for REEs, essential for facilitating a just and sustainable low-carbon transition worldwide.

As the world strives towards a greener future, the integration of circular economy principles into REE supply chains emerges as a promising avenue for mitigating resource constraints and advancing global sustainability goals. This research paves the way for transformative policies and collaborations aimed at maximizing the efficiency and longevity of rare earth element resources in the pursuit of a cleaner, more resilient future.

Reference: Wang, P., Yang, YY., Heidrich, O. et al. Regional rare-earth element supply and demand balanced with circular economy strategies. Nat. Geosci. (2024). https://doi.org/10.1038/s41561-023-01350-9