RARE EARTHS 101 - Avalon Rare Metals
RARE EARTHS 101 - Avalon Rare Metals
RARE EARTHS 101 - Avalon Rare Metals
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<strong>RARE</strong> <strong>EARTHS</strong> <strong>101</strong><br />
<strong>RARE</strong> EARTH ElEmEnTS: THE BASicS, EconomicS<br />
Supply cHAin And ApplicATionS
<strong>RARE</strong> EARTH BASicS<br />
<strong>Rare</strong> Earth Elements (‘REE’) are non-toxic elements essential to a cleaner environment and<br />
reduced reliance on fossil fuels. Also, REE are an enormous potential benefit to human health.<br />
3<br />
Li<br />
4<br />
Be<br />
40<br />
Zr<br />
41<br />
Nb<br />
31<br />
Ga<br />
32<br />
Ge<br />
37<br />
Rb<br />
57<br />
La<br />
55<br />
Cs<br />
39<br />
Y<br />
72<br />
Hf<br />
73<br />
Ta<br />
49<br />
In<br />
50<br />
Sn<br />
58<br />
Ce<br />
59<br />
Pr<br />
60<br />
Nd<br />
61<br />
Pm 62<br />
Sm 63 Eu 64 Gd 65 Tb 66 Dy 67 Ho 68 Er 69<br />
Tm 70 Yb 71 Lu<br />
Other <strong>Rare</strong> <strong>Metals</strong> Light <strong>Rare</strong> Earths Heavy <strong>Rare</strong> Earths<br />
There are 16 REE in total, 15 lanthanide elements appearing at the bottom on the Periodic<br />
Table, with atomic numbers ranging from lanthanum (57) to lutetium (71), plus the metal<br />
yttrium (39); all of which display similar physical and chemical properties. REE deposits tend to<br />
occur in two sub-groups:<br />
Light rare earth elements (‘LREE’), which include lanthanum (La), cerium (Ce),<br />
praseodymium (Pr), neodymium (Nd), and samarium (Sm)<br />
Heavy rare earth elements (‘HREE’), which are less common and more valuable, include<br />
europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er),<br />
thulium (Tm), ytterbium (Yb) and lutetium (Lu)<br />
Yttrium (Y) most commonly occur in association with HREE sub-group<br />
REE are not particularly rare in the earth’s crust, similar in abundance to nickel or tin, but<br />
generally not concentrated in commercially viable ore deposits.<br />
common pRopERTiES oF <strong>RARE</strong> <strong>EARTHS</strong><br />
Silvery-white metals that tarnish when<br />
exposed to air, thereby forming oxides<br />
Relatively soft metals; hardness increases<br />
with higher atomic numbers<br />
Reacts with water to liberate hydrogen<br />
gas, slowly in cold/quickly upon heating<br />
Most REE compounds are strongly paramagnetic<br />
Catalytic, chemical, electrical, metallurgical,<br />
nuclear, magnetic and optical properties<br />
Many REE compounds fluoresce strongly<br />
under ultraviolet light<br />
Reacts with dilute acid to release hydrogen<br />
gas rapidly at room temperature<br />
High melting and boiling points
<strong>RARE</strong> EARTH EconomicS<br />
GloBAl Supply & dEmAnd HiSToRy<br />
1794 <strong>Rare</strong> Earths discovered by Johan Gaddin in Ytterby, Sweden<br />
1903 First commercial production of rare earth flints at Treibach in Austria<br />
1953 Demand approximately 1,000 tons (US$25 million)<br />
1965 First stand-alone rare earths mine opened at Mountain Pass, US<br />
1985 Development of the NdFeB permanent magnet; China initiates low cost production<br />
2003 Demand approximately 85,000 tons (US$500 million)<br />
2008 Demand approximately 124,000 tons (US$1.25 billion)<br />
2016 Demand approximately 160,000 tonnes and valued at US$8.25 billion, as of April 2012,<br />
according to IMCOA’s demand forecast and <strong>Avalon</strong>’s price forecast<br />
Demand tpa - REO<br />
250,000<br />
200,000<br />
150,000<br />
100,000<br />
50,000<br />
<strong>Rare</strong> Earths Supply & demand<br />
Source: IMCOA, April 2012<br />
0<br />
2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f 2016f<br />
China Supply ROW Supply China Demand Total Demand<br />
Today, China produces over 95% of the world’s rare earth elements (“REE”). New sources are<br />
being developed in Canada, USA and Australia. In aggregate, demand and supply will be<br />
balanced; however, light rare earth elements (“LREE”) are expected to be in surplus while<br />
heavy rare earth elements (“HREE”) in deficit.<br />
year<br />
RE Export<br />
Quota<br />
(tonnes)<br />
% change demand<br />
outside china<br />
(tonnes)<br />
Surplus<br />
(Shortfall)<br />
(tonnes)<br />
2005 65,609 0.0% 48,000 17,609<br />
2006 61,821 -5.8% 53,000 8,821<br />
2007 60,074 -3.5% 55,000 5,074<br />
2008 56,939 -5.5% 54,000 2,939<br />
2009 50,145 -11.9% 25,000 25,145<br />
2010 30,258 -39.7% 47,500 (17,242)<br />
2011 30,148 0.0% 37,500 (7,352)<br />
2012 31,100 0.0% 42,500 (11,400)<br />
Source: IMCOA, April 2012<br />
The china Factor-Reduced Exports<br />
China's government has been implementing a range of policies putting the government in control of<br />
private and unauthorized mines that produce rare earth minerals (especially from the HREE-rich South<br />
China ionic clays), implementing stricter regulations towards improving environmental performance<br />
of its mining sector, and requiring foreign companies to move factories to China to complete<br />
production of items using rare earths. The outcome of these policies is reduced availability of rare<br />
earths outside China, higher prices, and the threat of further export restrictions. The market is<br />
encouraging companies to produce a secure source of rare earths outside China.
<strong>RARE</strong> EARTH ApplicATionS<br />
<strong>Rare</strong> earths are used in everyday products to produce energy, reduce energy consumption,<br />
increase energy efficiency and advance lifestyle consumer and medical products.<br />
Energy<br />
production<br />
Energy<br />
Reduction<br />
Energy<br />
Efficiency<br />
lifestyle<br />
products<br />
Petroleum Refining<br />
UV Filters in Glass<br />
Electric / Hybrid<br />
Vehicles<br />
Color Screens<br />
La Ce Nd Sm<br />
Y<br />
Eu<br />
Tb<br />
High-Powered<br />
Electric Motors<br />
Reducing Fuel<br />
Consumption<br />
Rechargeable<br />
Batteries<br />
Hardware<br />
Components<br />
Nd Dy Tb Nd La Nd<br />
Electric / Hybrid<br />
Vehicles<br />
Lighter Vehicles<br />
Energy-Efficient<br />
Lighting<br />
Medical<br />
Services<br />
La<br />
Dy<br />
Eu<br />
Tb<br />
Ce<br />
Nd<br />
Gd<br />
Wind Turbines<br />
Smaller, Lighter<br />
Electric Motors<br />
Ce<br />
Y<br />
La<br />
Nd Dy Tb Nd Dy<br />
Tb<br />
<strong>RARE</strong> EARTH pERmAnEnT<br />
mAGnETS (REpms)<br />
are much more powerful<br />
than alternatives, providing<br />
better performance with a<br />
smaller size, which has led to<br />
many miniaturization applications.<br />
REPMs have been advanced by neodymium,<br />
dysprosium, samarium, praseodymium and<br />
terbium.<br />
ElEcTRic moToRS<br />
are made more energy<br />
efficient, lighter weight,<br />
quieter and smaller with<br />
REPMs. These motors are<br />
typically used in washers,<br />
dryers, vacuum cleaners and<br />
compressors.<br />
W i n d T u R B i n E<br />
power generation is directly<br />
proportional to the sweep<br />
area of the blades and the<br />
cube of wind speed. As a<br />
result wind turbines are being<br />
deployed in remote areas, such as<br />
offshore, where wind speeds are greater. Wind<br />
turbine blade spans are also getting larger and<br />
overall assemblies taller.<br />
Direct drive turbine generators use REPMs<br />
and eliminate the need for a gearbox<br />
No gearbox means a simplified turbine<br />
drivetrain, reduced energy losses and<br />
decreased maintenance costs<br />
Approximately 600 – 900 kg of REPMs<br />
are needed per megawatt of wind turbine<br />
capacity, of which 25-30% is REE
HyBRid VEHiclES<br />
cut fossil fuel consumption<br />
by combining a conventional<br />
internal combustion engine<br />
with a battery powered<br />
traction drive.<br />
REE are used in the metal hydride component<br />
of the nickel-metal hydride (NiMH)<br />
battery, the electric traction motor, and<br />
regenerative braking system<br />
Hybrid vehicles contain approximately 30<br />
kg of REE, with the majority accounted<br />
for by the NiMH battery<br />
REPM electric motors are used for power<br />
steering columns, windows, windshield<br />
wipers and more<br />
REE play a critical role in automotive<br />
catalytic convertors, which transform the<br />
primary pollutants in engine exhaust into<br />
non-toxic compounds<br />
m R i m A c H i n E S<br />
used for medical imaging<br />
and diagnostics now<br />
incorporate REPMs to<br />
generate high strength<br />
magnetic fields.<br />
REPMs are replacing expensive traditional<br />
systems of wire coils that need to be cooled<br />
in liquid helium to reduce electrical resistance<br />
New units provide more space for the<br />
patient.<br />
l i G H T E m i T T i n G<br />
d i o d E S ( l E d s)<br />
use phosphors which<br />
typically incorporate rare<br />
earth elements. The most<br />
common LED phosphor is<br />
cerium-doped yttrium aluminium<br />
garnet (Ce:YAG). LEDs are 80% more efficient<br />
than incandescent lighting and 40% more<br />
efficient than compact fluorescent light bulbs<br />
(CFLs).<br />
conSumER ElEcTRonicS<br />
such as high performance<br />
speakers, headphones and<br />
ear buds use tiny REPMs<br />
for improved bass response<br />
and higher overall sound<br />
quality.<br />
c A m E R A l E n S E S<br />
binoculars, eyeglasses,<br />
mirrors and television<br />
faceplates are polished<br />
using agents which rely<br />
on rare earth oxides, often<br />
cerium oxide. In addition,<br />
lanthanum oxide is used to improve visual<br />
clarity in binoculars, camera lenses, microscopes<br />
and telescopes.<br />
m E d i c A l : <strong>Rare</strong> earths<br />
are used in a wide range of<br />
applications including drug<br />
treatments, diagnostic<br />
techniques and equipment.<br />
Solutions of organicgadolinium<br />
complexes are used as<br />
intravenous contrast agents to enhance<br />
MRI imaging<br />
Radioisotope yttrium-90 is used in cancer<br />
treatment<br />
Neodymium-doped yttrium aluminum<br />
garnet (Nd:YAG) lasers are used in eye<br />
surgery<br />
plASmA TElEViSionS<br />
and computer monitors<br />
are coated with phosphors<br />
which generate the primary<br />
colours red, blue and green.<br />
Europium is required for<br />
phosphors which generate the<br />
colour red. A new blue europium phosphor<br />
retains brightness ten times longer than previous<br />
blue phosphors. Phosphors are also used to create<br />
the white backlight used in LCD screens.<br />
F l u i d c R A c K i n G<br />
c A T A l y S T S u s e<br />
lanthanum and cerium<br />
in the refining of crude<br />
oil to improve the activity<br />
and hydrothermal stability<br />
of the catalyst, and enhance<br />
gasoline yields.
REE Supply cHAin<br />
<strong>RARE</strong> EARTH ElEmEnT pRocESS:<br />
FRom RocK To TomoRRoW’S pRoducTS<br />
Mining<br />
Milling<br />
Hydrometallurgy<br />
Separation<br />
Refining<br />
Products<br />
From the<br />
ground to<br />
crushed ore<br />
Grinding and<br />
beneficiation of<br />
REE minerals<br />
Cracking the REE<br />
minerals to produce<br />
mixed REE oxides<br />
concentrate<br />
Separating and<br />
purifying the<br />
individual REE oxides<br />
To meet specific<br />
downstream technology<br />
applications<br />
Permanent magnets,<br />
LED’s, consumer<br />
electronics<br />
<strong>Avalon</strong>’s contribution to REE supply chain<br />
Value added<br />
REE pRicinG: dySpRoSium And nEodymium<br />
dy oxide 99% min FoB china - nd oxide 99% min FoB china<br />
Dy Oxide 99% min FOB China - $/kg<br />
3,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
0<br />
May - 01 May - 02 May - 03 May - 04 May - 05 May - 06 May - 07 May - 08 May - 09 May - 10 May - 11 May - 12<br />
400,000<br />
350,000<br />
300,000<br />
250,000<br />
200,000<br />
150,000<br />
100,000<br />
50,000<br />
Nd Oxide 99% min FOB China - $/mt<br />
Date range: May 2001 - May 2012<br />
Source: Metal-Pages<br />
coRpoRATE SociAl RESponSiBiliTy<br />
<strong>Rare</strong> earth based materials are fundamental components in many<br />
modern day clean technologies. <strong>Avalon</strong> believes that environmental,<br />
economic and social responsibility should be integral to the upstream<br />
activities used to create these critical materials; from exploration and<br />
development to production.<br />
In this spirit, <strong>Avalon</strong> released its first Annual Corporate Sustainability<br />
Report in April 2012. This report was completed in accordance to the standards of the Global<br />
Reporting Initiative (GRI), Application Level C. Download a copy at avalonraremetals.com.<br />
www.raremetalblog.com<br />
<strong>RARE</strong> METAL APPLICATIONS is designed to encourage<br />
the sharing of scientific and engineering advances related<br />
to rare metals among industrial users, investors, policy<br />
makers, entrepreneurs and academia.