Rare Earth Elements: Industrial Applications and Economic Dependency of Europe

Rare Earth Oxides are used in mature markets (such as catalysts, glassmaking and metallurgy), which account for 59% of the total worldwide consumption of rare earth elements, and in newer, high-growth markets (such as battery alloys, ceramics, and permanent magnets), which account for 41% of the total worldwide consumption of rare earth elements. China currently controls completely the mining activity, the enrichment technologies and metallurgy, and end-metal products of rare earths, resulting for both Europe and the U.S.A. in full industrial dependency. Due to high demand and limited availability of rare earth elements (REEs), Europe is unable to meet its industrial needs today for the manufacturing sector. Therefore the EU has included them in the group of 14 critical minerals. The balance of demand and supply in the world market of Rare Earth Metals was always rather unstable. The most significant increase of prices took place during the years 2009-2011, followed by a sudden and substantial fall in prices due mainly to the actual, persistent heavy economic crisis of the industrialized countries. The EU, in order to limit the dependency of REE imports, would have to employ alternative measures to secure REE supply security by adopting an admixture of trade policies, industrial adjustment and innovation and budget allocations in the member states. (C) 2015 The Authors. Published by Elsevier B.V.