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Understanding Rare Earth Elements as Critical Raw Materials

Author

Listed:
  • Walter Leal Filho

    (Department of Natural Sciences, Manchester Metropolitan University, Manchester M15 6BH, UK
    European School of Sustainability Science and Research, Hamburg University of Applied Sciences, Ulmenliet 20, D-21033 Hamburg, Germany)

  • Richard Kotter

    (Department of Geography and Environmental Sciences, Northumbria University, Newcastle upon Tyne NE1 8ST, UK)

  • Pinar Gökçin Özuyar

    (Department of Business Administration, Bahçeşehir University, 34349 Istanbul, Turkey)

  • Ismaila Rimi Abubakar

    (College of Architecture and Planning, Imam Abdulrahman Bin Faisal University (Formerly, University of Dammam), Dammam P.O. Box 1982, Saudi Arabia)

  • João Henrique Paulino Pires Eustachio

    (Department of Natural Sciences, Manchester Metropolitan University, Manchester M15 6BH, UK
    School of Economics, Business Administration and Accounting at Ribeirão Preto, University of São Paulo (USP), Avenida dos Bandeirantes 3900, Ribeirão Preto 14040–905, São Paulo, Brazil)

  • Newton R. Matandirotya

    (Centre for Climate Change Adaptation and Resilience, Kgotso Development Trust, Beitbridge P.O. Box 5, Zimbabwe
    Department of Geosciences, Faculty of Science, Nelson Mandela University, Port Elizabeth 6000, South Africa)

Abstract

The boom in technological advances in recent decades has led to increased demand for rare earth elements (REEs) (also known as rare earth metals) across various industries with wide-ranging industrial applications, including in the clean energy sector, but with some environmental, economic, and social footprint concerns. This paper reviews the complexities of the production, consumption, and reuse or recovery of REEs, presenting current trends in terms of potentials and challenges associated with this. This paper in particular focuses on the supply, demand, and (environmental and economic) sustainability of REEs, as a subset of critical raw materials. It does so via a critical stocktaking of key discussions and debates in the field over the past 15 years up until now, through a thematic analysis of the published and gray (policy) literature with a grounded theory approach. The paper finds that carefully balanced lifecycle sustainability assessments are needed for assessing the respective dimensions of the extraction, processing, and reuse or recovery methods for different types of REE sources and supplies to meet current and future demands. It furthermore diagnoses the need for taking into account some shifts and substitutions among REEs also for reasons of cost and locational supplies for the security of supply. Finally, the paper provides some overall policy recommendations for addressing current problems, with a conceptual framing of the UN Sustainable Development Goals.

Suggested Citation

  • Walter Leal Filho & Richard Kotter & Pinar Gökçin Özuyar & Ismaila Rimi Abubakar & João Henrique Paulino Pires Eustachio & Newton R. Matandirotya, 2023. "Understanding Rare Earth Elements as Critical Raw Materials," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:1919-:d:1041258
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    References listed on IDEAS

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    3. Yang, Xiaoming & Islam, Md. Monirul & Mentel, Grzegorz & Ahmad, Ashfaq & Vasa, László, 2024. "Synergistic dynamics unveiled: Interplay between rare earth prices, clean energy innovations, and tech companies' market resilience amidst the Covid-19 pandemic and Russia-Ukraine conflict," Resources Policy, Elsevier, vol. 89(C).
    4. Dina Mohamed & Adham Fayad & Abdel-Mohsen O. Mohamed & Moza T. Al Nahyan, 2025. "The Role of E-Waste in Sustainable Mineral Resource Management," Waste, MDPI, vol. 3(3), pages 1-42, August.
    5. Diana Dmitrieva & Victoria Solovyova, 2023. "Russian Arctic Mineral Resources Sustainable Development in the Context of Energy Transition, ESG Agenda and Geopolitical Tensions," Energies, MDPI, vol. 16(13), pages 1-28, July.
    6. Mariev, Oleg & Blueschke, Dmitri, 2025. "Interplay of Chinese rare earth elements supply and European clean energy transition: A geopolitical context analysis," Renewable Energy, Elsevier, vol. 238(C).
    7. Nan Tang & Yuemeng Ge & Sajid Ali & Raima Nazar, 2026. "Financing the future: Asymmetric association between green investment and electric vehicles," Energy & Environment, , vol. 37(2), pages 1009-1030, March.
    8. Roberta Guglielmetti Mugion & Grazia Chiara Elmo & Veronica Ungaro & Laura Di Pietro & Olimpia Martucci, 2025. "A Systematic Literature Review of Selected Aspects of Life Cycle Assessment of Rare Earth Elements: Integration of Digital Technologies for Sustainable Production and Recycling," Sustainability, MDPI, vol. 17(13), pages 1-24, June.
    9. Wang, Qiang & Cheng, Xinchen & Pata, Ugur Korkut & Li, Rongrong & Kartal, Mustafa Tevfik, 2024. "Intermediating effect of mineral resources on renewable energy amidst globalization, financial development, and technological progress: Evidence from globe based on income-groups," Resources Policy, Elsevier, vol. 90(C).
    10. Sampriti Mahanty & Frank Boons & Gavin Harper, 2025. "Evolving Critical Metal Systems: Hype Cycles and Implications for Sustainable Innovation," Sustainability, MDPI, vol. 17(6), pages 1-20, March.
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