Supply chain diversification of rare earth elements (REEs): Electric vehicles and renewable energy

Written by Dr Saman llankoon, School of Engineering

Rare earth elements (REEs) are crucial to accomplishing renewable energy targets worldwide, including electric vehicles and wind energy. Despite the extensive requirements of REEs, the Chinese rare earth (RE) industry mainly fulfils current supply chains. It has resulted in price volatility, supply chain uncertainties, and RE trade disputes. The authors identified 13 constraints for developing RE supply chains outside China. The significant RE companies outside China, including RE industry experts, rated the constraints. The statistical analysation of the RE industry experts surveys results ascertain the critical factor that affected the development of independent rare earth (RE) supply chains outside China. Meanwhile, the dominant factors among the four crucial statistically significant factors are business uncertainties within the RE industry and the Chinese RE influences on global supply chains.

The findings of this study can identify and address the challenges that affect rare earth elements (REEs) supply chain diversification outside China. It helps develop the required REEs to develop industries that produce renewable energy (e.g. wind turbines) and electric vehicles. This work directly aligns with carbon neutrality and the United Nations sustainable development goals. We interviewed global rare earth industry company CEOs. We analysed their data for the study since there were no initial studies based on the rare earth industry literature.

This international collaboration study includes the Global Rare Earth Industry Association (REIA) in Belgium and Imperial College London. We have completed the supply chain study and published a Q1 journal article. We will develop methods to extract rare earth elements from secondary sources, including e-waste and initiate further collaborations with the REIA in Belgium, which we will complete in 2024. Our current stakeholders are Belgium's Global Rare Earth Industry Association (REIA), and rare earth companies are our future. Monash University Malaysia assists in the hiring of graduate research students and the dissemination of research findings.