Rare earth metals may be largely invisible to consumers, but many of the world’s most important and innovative products wouldn’t exist without them.
These 17 elements, most with names that the average person would never have heard of, let alone be able to pronounce, have helped drive many of the products that consumers and businesses can easily take for granted.
Rare earth metals help make modern technologies smaller, lighter, more powerful, and more efficient, and the list of items they are doing this for keeps growing.
However, as demand for advanced electronics, clean energy and sophisticated machinery increases, securing reliable supplies of these specialized materials is becoming increasingly important.
Understanding where rare earth metals are used, and why they are so difficult to replace in certain applications, has become an important focus for investors around the world.
Rare earth metals in everyday consumer goods
Every day you likely come in contact with something powered by rare earth metals.
The smartphone in your pocket, your laptop or computer, your television, headphones, these are just a small sample of everyday consumer goods that rely in some way on rare earths,
These elements make modern electronics smaller and more capable. Neodymium, for instance, is used to produce powerful miniature magnets found in many speakers and headphones. Other rare earth elements, including europium and terbium, are used in certain display technologies to produce vivid colours.
But it goes beyond just consumer electronics.
Many electric vehicles use neodymium-based permanent magnets in their motors, helping deliver high performance without taking up excessive space or weight. Dysprosium can help these magnets maintain their performance under demanding operating conditions.
Of course, they may not always be the largest component in a product, but in many cases, they are one of the most critical. In other words, rare earth metals may be easy to overlook, but their contribution to modern consumer technology is anything but small.
How rare earth metals power industrial innovation
But it is not just innovations in consumer goods where rare earth metals come into play; increasingly many of the world’s most important industrial innovations are built on them.
Look no further than semiconductors, artificial intelligence, and other advanced electronics where specialized materials and manufacturing processes are required. In robotics, powerful rare earth magnets help drive compact, high-performance motors that enable precise movement and automation.
A key focus for many countries (including the United States of America), and why they consider rare earth metals ‘critical’, is their use in advanced defense technologies.
Rare earths are used across a range of critical defense infrastructure, from radar and satellite communications to aircraft systems and precision-guided equipment. All which are areas where performance and reliability are critical.
This is just a short list of some of the most innovative and important technologies where rare earths play an important role, and why increasingly more countries are looking to develop their own reliable supply.
Tactical Resources and the race to secure rare earths
One company looking to play its part in assisting the United States in developing a reliable supply of rare earth metals is Tactical Resources (TREO).
The company has three mining leases, known as its Peak Project, spanning 286 acres at the Sierra Blanca Quarry in Texas.
Rather than relying solely on a new mining operation, the project focuses on rare earth-enriched material that has already been mined and stockpiled, alongside existing quarry infrastructure.
Tactical Resources aims to develop a domestic source of rare earth elements for industries including advanced electronics, robotics, electric vehicles and national defense. Its approach includes investigating processing methods designed to extract these materials more efficiently.
However, the opportunity remains a work in progress. Tactical Resources is still advancing technical studies, processing development and permitting plans, and has yet to establish a mineral resource estimate for the stockpiled material.
As demand for the materials behind modern innovation grows, Tactical Resources offers one example of the companies seeking to strengthen the US rare earth supply chain.
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Simply Wall St analyst Andrew Legget and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
