Important applications of LREE include permanent magnets for electric motors and electricity, generators, lighting phosphors, pigments, catalysts, glass and ceramics.
Magnetic metals make up around 90% of the value of the REE market, although other markets are equally large in tonnes. Permanent magnets made of neodymium (Nd) (often alloyed with praseodymium and/or holmium) form the strongest and most consistent magnetic fields, and therefore has a dominant position as a magnetic material, as this provides the greatest energy efficiency for both power generators in wind turbines and electric motors. The Green Shift where wind turbines and electric cars play a role key role, has provided a particularly strong development in the REE market, which is shown both in increasing production volumes and prices, and there is reason to expect that the total REE-market will continue to grow significantly in the coming years.
Today, China practically has complete control over the LREE-market making other countries concerned about this supply risk. All states that have published lists of critical raw materials have listed REE or LREE/HREE as critical materials. The global production of LREE (refined metal) in 2021 was around 162,000 tons.
Waste streams and systems for recycling
Despite many important applications and the status of China's as the single supplier of REE, there is so far very little recycling of these important metals, and the technology for recycling of LREE from many waste streams is still immature. Global recycling rate for LREE is estimated to be around 3%. There are however significant waste streams available from which LREE can be recovered when this becomes technologically possible and economically advantageous.
LREE and HREE will often exist in the same waste streams, with WEEE and scrapped vehicles being examples of waste streams that may form feedstock for future LREE/HREE recycling. LREE can be found in WEEE in fluorescent tubes, energy saving bulbs, screens, lasers, hard drives, electric motors, advanced batteries, fiber optic equipment, and various types of electrical measuring equipment.
There is so far no recycling capacity for LREE-waste in the Nordic countries. There is however a LREE-processing plant under construction in Norway, which can be expanded to recycle LREE if provided incentives to do so.