FACT BRIEF

Will rising demand for renewable energy drive a big increase in demand for rare-earth metals?

Tuesday, October 20, 2020

By Seth Smalley

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YES

Generating more renewable energy will drive a large increase in demand for certain rare-earth metals used in the production of solar panels and wind turbines (as well as in many other common products). Rare-earth metal mining and processing has acknowledged environmental effects. Reserves are concentrated in a handful of countries, most notably China.

A consulting firm's detailed look at the needs for one country, the Netherlands, suggests global demand for at least one metal, indium, could increase twelvefold by 2050. Along with increased mining, the report's authors say increased recycling or design changes could help meet the demand. Demand for other rare-earth metals could rise by between three and seven times.

Renewable energy generation will also generate more demand for other raw materials such as cobalt and lithium.

This fact brief is responsive to conversations such as this one.

Sources

Reuters: China's rare-earth supplies a bargaining chip

Metabolic: Metal demand for renewable energy generation in The Netherlands

Manhattan Institute: Renewable energy requires mining

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