Rare Earth Production

    The turnout of rare earth products in China accounts for two thirds of the world total. In 1999, China exported 50,000 tons REO of rare earth products, and consumed domestically 16,000 tons REO of rare earth, making the total 66,000 tons REO. The world's total consumption of rare earth was roughly 75,000 tons REO, so China provided the world with 88% of the total consumed rare earth products. And the major source for China's rare earth is Baotou.

    How could China take so large a market share in rare earth raw materials? What is the situation in other rare earth resource-rich countries, some of which used to be the major suppliers of rare earth in the past?

    USA: The USA used to be the leading supplier of rare earth, and is the only country that has mined rare earth as a target product. But with the emergence of Chinese low-price rare earth products in the late 1980's, the USA has almost stopped its rare earth production and become one of the major importers of Chinese rare earth products.

    CIS: There has been a report saying that the CIS (former Soviet Union) has 19 million tons REO rare earth reserves, but the proven reserve is reported to be only about 6 million tons REO reserves in complex rare earth minerals with low rare earth contents, thus being difficult to recover.

    Australia and India: Both countries own monazite resources recovered as a byproduct of heavy minerals such as ilmenite and zircon. But the availability of the monazite is limited, and large scale processing of monazite will result in environmental concerns, because of the high content of radioactive elements (Th and U) in monazite.

    The rare earth in Baotou is characterized by being readily available with high content of high value rare earth elements such as Nd and Eu. The rare earth is recovered as a byproduct of iron processing, thus having low production costs, and the quantity of rare earth mined along with iron minerals is as much as 600,000 tons REO each year, some 15% of which could meet the world's demand. Therefore, Baotou has become the world's largest rare earth raw material production base.

Global Trade

    In addition to China, the major rare earth consumers are the USA, Japan, Europe, and other countries and regions in Southeast Asia. The USA has rare earth resources, but has nearly stopped rare earth production because of high production cost and environmental concerns, and instead has become one of the major rare earth importers. Japan and Europe do not have rare earth resources, and their demand for rare earth is met by imports. In 1999, the total world consumption of rare earth was about 75,000 tons REO, and China met 88% of this demand. China has become the dominant global supplier of rare earth, and will maintain this leading role in resource extraction, production, and export for quite a while.

Applications and Markets

    The consumption of rare earth in 1999 was divided as follows(%): North America: 27, China: 22, Japan:22, other countries/regions in Southeast Asia: 13, Europe: 13, and others: 3.

    If divided by application, the consumption ratio was as follows(%): catalyst/chemical engineering: 33, glass: 25, new materials: 20, metallurgy: 13, ceramics: 4, and others: 5.

    Among the many applications, the application of rare earth in new materials has been growing rapidly and features high added value.

Rare Earth and Hi-tech Industries

    Rare earth is a group of active metallic elements different from commonly-used elements in that rare earth is rarely directly used as a metal, but as an additive. When added to materials, rare earth either improves the quality of the materials, or creates totally new materials. Therefore, rare earth has been closely related to contemporary science and technology. The special properties in rare earth of magnetism, luminescence and electronics have become the base for scientists to realize their dreams. In addition, the development of hi-tech industries requires the support of new materials, which has not only updated the existing materials, but also helped to create new materials. Thus do rare earth and hi-tech walk hand-in-hand.

Rare Earth Applications in Traditional Fields

    The original applications of rare earth were in traditional industries, such as metallurgy. Take metallurgical application as an example. Rare earth metals are chemically active, so they can remove impurities in iron and steel, such as nitrogen, oxygen, sulphur and other elements. In addition, rare earth can also modify the morphology of sulphide and graphite so as to refine grains and strengthen the matrix of cast iron. Therefore, when added to steel, rare earth not only increases the strength, but also anti-oxidation and bear resistance, and in cast iron improves toughness, in aluminum improves conductivity, strength, and machineability, and in Mg, Zn, Ni, Ti and Cu rare earth helps in manufacturing special alloys. In addition, rare earth can also be used to produce lighter flints and other flint alloys for military uses.

    When applied in petroleum cracking, rare earth catalysts can raise gasoline production by 5%, and increase the capacity of the cracking equipment by 20-30%. Rare earth can also be employed in auto-emission control catalysts, paint driers, and thermal stabilizers for plastics.

    In glass and ceramics, rare earth is used as polishing powder, and a dyeing agent. The newly developed CeS2 red paint can replace Cd and Pb in plastics making, showing a great market potential.

    In agriculture, rare earth micro-fertilizer can raise the yield of grain crops by 10%, and that of other crops by 15%. In China, there are over 100 million mu of farm lands where rare earth micro-fertilizers are being applied. The applications for rare earth additives for animal feeds are increasing now, following studies that show no harmful effects on human beings and animals.