China’s Ace in the Hole

Rare Earth Elements

By C i n d y A . H u r s t

World’s largest rare earth mine,

Bayan Obo, China

U.S. Geological Survey National Minerals Information Center

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FEATURES | Rare Earth Elements

O
n February 4, 2010, nearly

U.S. Geological Survey National Minerals Information Center

2 weeks after the Obama
administration unveiled a $6.4
billion arms deal with Taiwan,
a Chinese article posted on an online Chinese
Communist Party–connected daily newspa-
per site, as well as on many Chinese blogs and
military news sources, suggested banning
the sale of rare earth elements (REEs) to U.S.
companies as retribution.1 There was already
ample Western concern about potential
diminishing access to supplies of REEs, par-
ticularly after a 2009 draft report written by
China’s Ministry of Industry and Information
Technology called for a total ban on foreign
shipments of terbium, dysprosium, ytterbium,
thulium, and lutetium, and a restriction of
neodymium, europium, cerium, and lantha-
Striped high-grade monazite-bastnasite ore
num exports.2 The report immediately caused
an uproar among rare earth buyers because
China produces approximately 97 percent The term rare earth is actually a mis- described as a “treasure trove” of new mate-
of the world’s REEs. While there are sources nomer; these elements are not rare at all, rial and the “vitamins of modern industry.”5
of rare earth around the world, it could take being found in low concentrations through- REEs have also been described as “materials
anywhere from 10 to 15 years from the time out the Earth’s crust and in higher concen- of the future.”6
of discovery to begin a full-scale rare earth trations in certain minerals. REEs can be
operation. found in almost all massive rock formations.
REEs are important to hundreds of However, their concentrations range from in China, REEs have been
high-tech applications, including critical ten to a few hundred parts per million by described as the “vitamins
military-based technologies such as precision- weight. Therefore, finding them where they of modern industry”
guided weapons and night-vision goggles. In can be economically mined and processed
exploring the idea of global military might, presents a challenge.
China appears to be holding an unlikely For at least the past five decades, In 1993, Vyacheslav Trubnikov, first
trump card. The country’s grasp on the rare international scientists and engineers have deputy director of Russia’s Foreign Intel-
earth element industry could one day give understood the importance of REEs to mili- ligence Service, reportedly sent a letter about
China a strong technological advantage tary technology. For some, the topic of rare REEs to Oleg Soskovets, the Russian Federa-
and increase its military superiority. This earth has even been shrouded in secrecy. For tion’s first vice premier, saying, “We have
article focuses on rare earth elements and example, in Russia, REEs were once consid- been receiving information indicating that
their importance to military technology. It ered a national secret, with little mention advanced industrial countries are making
also demonstrates how China’s research and being made about them prior to 1993. Their increasing use of REEs due to progress
development programs, coupled with its vast secret applications were long confined to in creating and developing qualitatively
reserves of REEs, have the potential to make those organizations, such as the Ministry new, specialized materials with them that
the country a dominant force in the world. of Medium Machine Building, Ministry of increase the critical parameter values of
Nuclear Energy, and Ministry of Nonferrous high technology products in the fields of
Background Metallurgy, that were responsible for the rocket-space and aviation, microelectronics,
REEs are those chemical elements on research, design, and production of military and electrical engineering.” 7
the periodic table having atomic numbers equipment and weapons systems. The reason Not only are REEs used to greatly
57 through 71 (known as the lanthanides), for their secrecy was simple. More than 80 improve the qualities and properties in the
scandium, and yttrium (atomic numbers 21 percent of the rare earth industry went into metallurgy industry, they are also used in
and 39). Scandium and yttrium are gener- the former Soviet Union’s defense systems.3 the fields of lasers, fluorescents, magnets,
ally grouped with the lanthanides because Today, many foreign and domestic fiber optic communications, hydrogen
of their similar properties and because they analysts view REEs as a key factor in devel- energy storage, and superconducting materi-
are normally found within the same deposits oping modern military technology. For als—all key technologies that have been suc-
when mined. example, one Chinese article attributed cessfully applied to modern militaries.8
“night vision instruments with the REE
Lieutenant Commander Cindy A. Hurst, USNR, is a lanthanum” as a “source of the overwhelm- Military Applications
Political-Military Research Analyst in the Foreign ing dominance of U.S. military tanks during Of course, not all REEs are created
Military Studies Office at Fort Leavenworth, Kansas. the Gulf War.”4 In China, REEs have been equal. Some experts predict that by 2015 there

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 Hurst

be substitutes, the tradeoff would diminish

U.S. Army (David J. Marshall)

military superiority. According to George

Hadjipanayis, a Richard B. Murray Chair
Professor of Physics at the University of
Delaware, the alnico and ferrite magnets, the
first two permanent magnets ever produced,
do not have rare earth in them and their per-
formance is much lower. Hadjipanayis is cur-
rently working with a group of researchers to
develop a “next generation magnet” that will
be stronger than either the NdFeB or SmCo
magnets. The project is being conducted using
a three-tiered approach:15

■■ The University of Nebraska is striving

to develop a permanent magnet that does not

require rare earth.
■■ The U.S. Department of Energy’s Ames
Soldier uses magnet locater to search for evidence of extremist activity in Bezel, Iraq
Laboratory in Iowa is pursuing options that
might use new materials based on combina-
will be a shortage of neodymium, terbium, munitions use samarium-cobalt (SmCo) tions of rare earths, transition metals, and pos-
and dysprosium, while supplies of europium, permanent magnet motors to direct the flight sibly other elements that have not been used
erbium, and yttrium could become tight.9 The control surfaces (fins). SmCo can also be used with magnets before.
neodymium-iron-boron (NdFeB) permanent as part of stealth technology in helicopters to ■■ The University of Delaware is striving

magnets are so strong that they are ideal for create white noise to cancel or hide the sound to create a new magnetic material that is based
the miniaturization of a variety of technolo- of the rotor blades. These magnets are used on an idea of “nano-composite” magnets. It is
gies, including possible nanotechnologies. in defense radar systems as well as in several a complex process that could slash the use of
Many solid state lasers use neodymium types of electronic countermeasure equip- neodymium or samarium in magnets by 30 or
due to its optimal selection of absorption ment, such as the Tail Warning Function.12 40 percent.16
and emitting wavelengths. Consumption of According to the U.S. Geological Survey,
neodymium is expected to increase signifi- substitutes are available for many rare earth
cantly as more wind turbines come online. applications, but they are generally less effec-
Wind may be “free,” but some of the newer tive.13 Steven Duclos, chief scientist with since the discovery of the
generation wind turbines use up to two tons General Electric Global Research asserts, NdFeB magnet in 1983,
of these magnets. Terbium and dysprosium “There’s no question that rare earths do have research and development
can be additives to enhance the coercivity in some properties that are fairly unique, but
in the United States has
NdFeB magnets.10 Yttrium is used, along with for many applications these properties are
neodymium, in lasers. Europium is the most not so unique that you cannot find similar been relatively flat
reactive of the REEs. Along with its current properties in other materials. [REEs] are just
use in phosphors for fluorescent lamps and better, from either a

Molycorp
television/computer screens, it is being studied weight, strength, or
for possible use in nuclear reactors.11 Erbium optical property and
is used as an amplifier for fiber optic data that’s why people have
transmission. It has also been finding uses moved to them.” Duclos
in nuclear applications and metallurgy. For went on to explain, “It
example, adding erbium to vanadium, a metal always comes down to a
used in nuclear applications and high-speed tradeoff. You can build a
tools, lowers the hardness and improves the motor that does not have
workability of the metal. rare earth permanent
Samarium is another REE used in mili- magnets in it. It will
tary applications. Samarium is combined with be bigger and heavier
cobalt to create a permanent magnet with for a given amount of
the highest resistance to demagnetization of power or torque that you
any material known. Because of its ability to want.”14
withstand higher temperatures without losing Some scientists
its magnetism, it is essential in both aerospace argue that in many Officer measures Aero Propulsion Laboratory rotor for advanced high-
and military applications. Precision-guided cases, while there may energy alternator designed to produce up to 5 million watts of electricity

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 FEATURES | Rare Earth Elements

coming on line soon. Still, even if plans to

U.S. Army (Matthew Freire)

open up new and renewed Western operations

do come through, the bigger issue may well be
China’s growing emphasis in the research and
development of REEs, as compared to U.S.
efforts, which have decreased dramatically.
The United States paved the way for
many of today’s modern technologies that
China is now capable of exploiting. Part of
that effort has entailed scientists focusing
on and dissecting the properties and uses of
REEs. From about the 1940s to the 1990s,
REEs attracted interest in both the U.S. and
Chinese academic and scientific communities.
Today, however, there are only a small handful
of scientists who truly focus on REEs in the
United States.
China, on the other hand, has estab-
lished entire laboratories and teams devoted
to the study of REEs. It has various high-
profile national programs, such as Program
863 (National High-tech Research and Devel-
opment) and Program 973 (National Basic
Research). While these programs were not put
into place to specifically support rare earth–
based projects, they are important to China’s
rare earth industry. These programs offer
millions of dollars of government funding for
military and civilian research projects that
are meant to narrow the technological gap
between China and the rest of the world and
to give China a foothold in the world arena.
China has a keen forward thinking
ability. Its planners pinpoint a potential
problem or strength years in advance. Then
over time, the country begins to build a strong
foundation to achieve its end goal. In 1992,
during his visit to Bayan Obo, China’s largest
rare earth mine, Chinese leader Deng Xiaop-
Laser guidance during air assault mission in Paktika Province, Afghanistan
ing declared, “There is oil in the Middle East;
there is rare earth in China.”19 Seven years
later, President Jiang Zemin wrote, “Improve
Rare earth permanent magnets consti- exports of rare earth elements grew, causing the development and application of rare
tute the widest use of REEs. In the 1960s, the prices worldwide to plunge. This undercut earth, and change the resource advantage
United States was number one in the research business for Molycorp and other producers into economic superiority.”20 Wang Minggin
and development of magnets. The Nation around the world, and eventually either drove and Dou Xuehong, both from the China
enjoyed many technological breakthroughs them out of business or significantly reduced Rare Earth Information Center at the Baotou
until about the early 1980s. Since the discov- production efforts. According to sources Research Institute of Rare Earth in Inner
ery of the NdFeB magnet in 1983, research within the industry, rare earth deposits in Mongolia, published a paper in 1996 entitled
and development in the United States has the United States, Canada, Australia, and “The History of China’s Rare Earth Industry.”
been relatively flat.17 South Africa could be mined by 2014.18 Some They wrote, “China’s abrupt rise in its status
experts, such as Professor Jean-Claude Bunzli as a major producer, consumer, and supplier
Chinese Influence from the Swiss Federal Institute of Technol- of rare earths and rare earth products is the
The Mountain Pass rare earth mine in ogy, argue that the quantities of rare earth most important event of the 1980s in terms of
California, owned by Molycorp Minerals, in military technology are low enough that development of rare earths.”21
was once the largest rare earth supplier in the diminishing supplies from China should not China knew what it had even before the
world. Through the 1990s, however, China’s be an issue due to Western mining operations 1990s. The country established the General

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 Hurst

Research Institute for Nonferrous Metals in iron in mortar projectiles, China used semi- Along with creating more efficient metal
1952. In the 1950s, the Bayan Obo mine was steel made from high-quality pig iron with alloys, China has carefully studied numer-
built and operated as the iron ore base of the 30 to 40 percent scrap steel as the material for ous other uses of REEs, many of which have
Baotou Iron and Steel Company. In the late pre-chambers of projectile bodies. These older been used and developed in the United States
1950s, China began recovering rare earths projectile body pre-chambers proved to be and by some U.S. allies. These technologies
during the process of producing iron and much lower in strength, were highly brittle, include rare earths as combustibles in bombs;
steel. Since the 1960s, China has emphasized and produced few effective kill fragments after nuclear applications, including military
maximizing the use of Bayan Obo, which is detonation. In addition, they were not sharp.24 defense, nuclear radiation shielding, and tank
located in Inner Mongolia, 80 miles north thermal radiation shielding technologies;
of Baotou. This effort included employing permanent magnets with magnetic properties
China had been looking at
people to find more effective ways to recover that are “a hundred times stronger than the
the rare earths. Along with trying to improve ways to effectively use REEs magnetic steel used in military equipment in
separation techniques, China also began other in military applications as far the 1970s”; lasers, including laser rangefind-
research and development efforts. In 1963, back as the early 1960s ers, laser guidance, and laser communication
they established the Baotou Research Institute systems; superconducting materials; sonar;
of Rare Earths. Rare earth magnesium alloys are fairly and others.26
There are two state key laboratories in strong and lightweight, making them ideal In April 2006, Li Zhonghua, a senior
China: the State Key Laboratory of Rare Earth for aircraft. The China Aviation Industry engineer, along with Zhang Weiping and Liu
Materials Chemistry and Applications, which Corporation (AVIC) has reportedly developed Jiaxiang, all from China’s Hunan Rare Earth
is affiliated with Peking University in Beijing; 10 brands of rare earth magnesium alloys. Materials Research Academy, published a
and the State Key Laboratory of Rare Earth paper entitled “Application and Development

Molycorp
Resource Utilization, in Changchun, in the Trends of Rare Earth Materials in Modern
northern province of Jilin. Military Technology.” After giving a point-by-
Globally, there are two journals dedi- point narration on the special roles REEs play
cated to the research and study of REEs: the in modern technology, the authors concluded
Journal of Rare Earth and China Rare Earth that there is a close relationship between rare
Information (CREI) Journal, both put out earths and modern military technology. They
by the Chinese Society of Rare Earths. The also noted that the development of the rare
society was founded in 1980 and comprises earth industry has greatly pushed forward the
tens of thousands of registered scientific overall progress of modern military technol-
and technical researchers of rare earths.22 Bastnasite ore mined by Molycorp Minerals in ogy, and the heightening of military technol-
The number of U.S. scientists devoted to the California is source of rare earth elements used in ogy has in turn driven the flourishing growth
research and study of REEs today pales in high-tech products of the rare earth industry.27
comparison to the vast number in China. Most press reports today express
U.S. Army (Matthew Freire)

Meanwhile, China had been looking concern about the future supply and demand
at ways to effectively use REEs in military of REEs and China’s tightening supplies due
applications as far back as the early 1960s, to the country’s own growing domestic needs.
when its weapons industry began applied Yet there is little mention made regarding
research in the areas of armor and artillery China’s research and development efforts,
steel. The country produced special rare earth which probably deserve the most attention
armor steels that became beneficial in manu- since research and development is the driving
facturing tanks. In the mid-1960s, China force behind China’s increasing success.
created rare earth carbon steel, the transverse
impact value of which was a 70 to 100 percent Bastnasite is a rare earth carbonate mineral More Players
improvement over the raw carbon steel origi- Seeing the potential that REEs hold
nally used. Firing tests on the shooting range For example, the “ZM6”cast magnesium alloy, in modern technologies has likely fueled
proved that large-caliber cartridges made with which has neodymium as the main rare earth research and development in other coun-
the rare earth armor steels were able to fully additive, is being used extensively in such tries, such as North Korea and Iran. For
meet technical requirements.23 functions as the casings for rear brakes on example, in 1988, North Korea formed the
Since 1963, China has been using rare helicopters, ribs for fighter wings, and rotor Korea International Chemical Joint Venture
earth ductile iron in mortar projectiles, lead plates for 30-kilowatt generators. Another Company (other names include Chosun
which was said to have doubled or tripled high-strength rare earth magnesium alloy, [or Choson] International Chemicals Joint
the dynamic properties of the projectiles, known as “BM25,” which was jointly devel- Operation Company) to produce REEs from
increasing the number of effective kill frag- oped by AVIC and China’s Nonferrous Metal the mineral monazite. According to the U.S.
ments several times over and sharpening the Corporation, has replaced some medium- Geological Survey, the plant was reportedly
fragment edges, which greatly improved the strength aluminum alloys and is being used designed to use solvent extraction technology
kill power. Prior to using the rare earth ductile for attack aircraft.25 acquired from China’s Yue Long Chemical

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Plant near Shanghai.28 Production began in the United States today leads in technological 14
Steven Duclos, telephone interview with
1991. The monazite is said to come from the innovation, China’s position in the rare earth author, March 2, 2010.
Ch’olsan Uranium Mine near Ch’olsan-kun industry and its vast reserves and ability to
15
Jeremy Hsu, “Scientists Race to Engineer a
New Magnet for Electronics,” Live Science, April 10,
in P’yong’an Province. The Hamhung plant mine and produce them, coupled with its
2010.
reportedly has the capacity to process 1,500 intense research and development efforts, 16
Ibid.
tons per year of monazite, from which 400 could one day give it a decisive advantage in 17
For more information on the history of
tons of rare earth metals and oxides can be military-based technologies. The U.S. military China’s rare earth industry, read Cindy A. Hurst,
processed.29 must plan for this eventuality and take appro- China’s Rare Earth Elements Industry: What Can
In June 2009, North Korean leader Kim priate actions today if it expects to maintain the West Learn? (Washington, DC: Institute for the
Jong-Il visited the Hamhung Semiconductor its lead in military technology. JFQ Analysis of Global Security, March 2010), available
Materials Factory and the Hamhung Branch at <www.iags.org/rareearth0310hurst.pdf>.
of the State Academy of Sciences, where he N otes
18
“Rare Earth Materials in the Defense Supply
stressed the need to boost production capacity Chain,” Government Accountability Office in
and the need to accelerate technical updat-
1
Wang Dake, “Consider Banning the Sale of response to the National Defense Authorization Act
Rare Earth as Sanctions Against U.S. Companies,” for Fiscal Year 2010 (Pub. L. No. 111-84), April 14,
ing of the factory to increase the production
Shanghai Dongfang Zaobao [Chinese], February 4, 2010.
of rare earth metals. During a campaign to
2010, available at <http://www.dfdaily.com>. 19
“Rare Earth: An Introduction,” Baotou
build up the country’s research efforts, Kim National Rare-Earth Hi-Tech Industrial Develop-
2
Articles discussing the report stated that
visited several areas and spoke to the scientists yttrium was one of the elements expected to be ment Zone, accessed April 28, 2010.
and technicians of the Hamhung Branch. He banned. This is likely an error. Ytterbium is much 20
Ibid.
less abundant than yttrium. See Ambrose Evans- 21
Wang Minggin and Dou Xuehong, “The
Pritchard, “World Faces Hi-Tech Crunch as China History of China’s Rare Earth Industry,” in Epi-
North Korean leader Kim Eyes Ban on Rare Metal Exports,” Telegraph, sodes from the History of the Rare Earth Elements,
August 24, 2009. ed. C.H. Evans (Dordrecht, Netherlands: Kluwer
Jong-Il stressed the need 3
“Russia’s Rare Earth, By Way of Prologue: Academic Publishers, 1996), 131–147.
to increase the production Two Quotes from One Letter,” Interfax AIF, 22
According to the China’s Society of Rare
of rare earth metals January 29, 1999. Earths Web site, there are more than 100,000
4
“Chinese Government Wins Initial Success “registered experts.” However, approximately one-
in Fight to Protect Tungsten, Antimony, and quarter to one-third of these “experts” are likely
was accompanied by members of the Central administrative personnel.
Rare Earth Elements,” Chinese Government Net
Committee of the Worker’s Party of Korea, [Chinese], May 7, 2009. 23
Li, Zhang, and Liu.
including Ju Kyu Chang, a member of the 5
Li Zhonghua, Zhang Weiping, and Liu Jiax- 24
Ibid.
National Defense Commission and First Vice iang, “Application and Development Trends of Rare 25
Ibid.
Director of the Ministry of Defense Industry, Earth Materials in Modern Military Technology,” 26
Ibid.
and the department directors in Organiza- Hunan Rare-Earth Materials Research Academy 27
Ibid.
tion and Instruction, Financial Planning, and [Chinese], April 16, 2006. 28
Solvent extraction technology was originally
Administration.30
6
“Russia’s Rare Earth, By Way of Prologue.” developed in the United States, then bettered by the
Iran has also embarked on research
7
Ibid. French company Rhône Poulenc, which became
8
Li, Zhang, and Liu. Rhodia. In the 1980s and 1990s, this was the best
and development efforts. As early as 1998, its 9
Robin Bromby, “Caution, Rare Earths separation technology available. Eventually, after
Laser Research Center is believed to have been
Ahead,” The Australian, April 26, 2010, avail- much hesitation, Rhodia transferred the technol-
producing indigenous neodyn [neodymium] ogy to Baotou under the form of a joint venture in
able at <www.theaustralian.com.au/business/
yttrium-aluminum (Nd:YAG) lasers, using mining-energy/caution-rare-earths-ahead/ Baotou, China.
laser crystals.31 story-e6frg9ex-1225858477751>. 29
James B. Hedrick, “Rare Earths,” U.S. Geo-
In Nezavisimaya Gazeta, Alexander 10
Magnets will lose their magnetism at certain logical Survey Minerals Yearbook, 2002, 61.7.
Portnov, a professor specializing in geologi- elevated temperatures. Neodymium can only 30
“Kim Jong Il Provides Field Guidance to
cal and mineral sciences, wrote, “There can be used at near room temperatures. Adding the Factory and Scientific Institution,” KCNA, June
be no talk of developing nanotechnology if terbium or dysprosium gives it a higher coercivity, 30, 2009, available at <http://www.kcna.co.jp/
the country does not produce and use rare which allows the magnet to withstand higher tem- item/2009/200906/news30/20090630-26ee.html>.
elements.” Portnov argues that a country’s peratures before losing magnetism. 31
The original source of this information
11
Europium sesquioxide (Eu203) has been breaks out Nd:YAG as neodymium:ytterbium-
extraction, production, and use of rare metals
tested as neutron absorbers for control rods in (fast aluminum garnet lasers. This is likely inaccurately
needed for technological innovation are “a
breeder) nuclear reactors. Jean-Claude Bunzli, depicted since the Nd:YAG is produced with
precise indicator of its scientific and technical yttrium, and not ytterbium. See Charles D. Fergu-
email correspondence with author, April 29, 2010.
development.”32 12
James B. Hedrick, “Rare Earths in Selected son and Jack Boureston, “IAEA Pubs Iranian Laser-
U.S. Defense Applications,” paper presented at the Enrichment Technology in the Spotlight,” Jane’s
It is possible that suitable alternatives 40th Forum on the Geology of Industrial Minerals, Regional Security Issues, June 18, 2004.
to REEs could one day be discovered. In the Bloomington, IN, May 2–7, 2004. 32
Alexander Portnov, “The Metallic Aftertaste
meantime, however, REEs are critical to many 13
“Rare Earth,” U.S. Geological Survey, Mineral of Scientific Progress,” Nezavisimaya Gazeta, Sep-
modern technologies. China has recognized Commodity Summaries, January 2009, 131. tember 10, 2008.
the value of REEs for over five decades. While

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