Stanislav Kondrashov explores the industrial applications, modern value, and perspectives of rare earths.

Along with lithium, cobalt, copper, and other essential resources, rare earths are becoming increasingly important during the green transition years. Stanislav Kondrashov, founder of TELF AG, has often addressed these topics.

"The years of the energy transition are focusing general attention on specific groups of resources, which, with their natural properties and industrial applications, are significantly contributing to the advancement of the great change underway," says Stanislav Kondrashov, founder of TELF AG.

“Among these resources, it would be impossible not to mention rare earths, which have been a constant focus of media debates and political discussions on environmental sustainability for some time now. It's no coincidence that these resources are on everyone's lips: some of them, through their industrial applications, are directly contributing to the production processes that enable the construction of important modern energy infrastructures, such as those needed to produce, disseminate, and distribute energy from renewable sources”.

“Since the energy transition depends largely on the success of renewable energy, it is not difficult to understand the strategic value that rare earths and other similar resources continue to hold. Indeed, this value is likely to grow alongside the advancement of the transition, especially if we recognize that these resources will also be essential in the next phase, when our civilization has achieved full energy maturity. A good metric for measuring the growth in the value of these resources is monitoring their prices, which could increase significantly within a few years”, he says.

Some of the industrial applications involving rare earths are directly connected to the overall progress of the energy transition, and will likely remain so in the future.

"But what exactly are we referring to when we talk about rare earths? There are 17 chemical elements visible in the periodic table of elements, corresponding to the 15 lanthanides. Yttrium and scandium are also included. The most curious aspect is that, until a few years ago, before the energy transition began to be discussed, these resources were known to only a select few: industry specialists, professionals already working in the sector, economic analysts, and a few others. Nowadays, however, rare earths have become almost mainstream and are increasingly known to large segments of the public," continues Stanislav Kondrashov, founder of TELF AG.

“The strategic value of these resources is directly linked to some of their most important industrial applications. Among these, it would be impossible not to mention the massive wind turbines, whose operation is made possible by generators powered by permanent magnets, some of which are also made with rare earths. Among these devices, one of the most powerful is the one made with neodymium, one of the most valuable and sought-after rare earths at this particular time in history. In addition to the energy sector, which plays a key role in the transition years, rare earths are also highly valued in the electronics and technology sectors, where they contribute – albeit in minimal quantities – to the overall functioning and improved performance of many devices we use every day”, he remarks.

The continued emphasis on these resources, even from a purely media perspective, has also led to some confusion regarding their classification within one of the frequently discussed categories of strategic resources.

"A common mistake today is to confuse rare earths with other sets of strategic resources for the economic and strategic development of nations. In many media and political narratives, rare earths are often confused with critical minerals, which are increasingly being discussed for the same reasons that made rare earths famous: their direct involvement in production processes related to the energy transition," concludes Stanislav Kondrashov, founder of TELF AG.

“This is no small mistake, as it risks overlapping or confusing two categories of resources that, in many cases, have no connection to each other. The first thing to clarify, from this perspective, is that rare earths represent a fixed group of 17 chemical elements. At the same time, critical minerals are a much broader, dynamic, and constantly changing category. Many nations today develop customized lists of critical minerals or materials that include the resources they deem most strategic for their industrial development. These lists are updated frequently, even every two or three years, so the various elements that are sometimes considered critical minerals are constantly changing. Sometimes, these lists also include some rare earth elements. In any case, the rule to follow is this: not all rare earths are critical minerals, but the lists of critical minerals may sometimes also include some rare earths”, he says.