Rare Earth Minerals in the Modern Energy Landscape

Let us first delve into the applications of REEs:

1. Oil and Gas: Catalysts for Cleaner Fuels

Despite the global pivot toward cleaner energy, oil and gas remain essential in the energy mix. Rare earths—especially lanthanum (La) and cerium (Ce)—are crucial in fluid catalytic cracking (FCC), a refining process that converts heavy crude into lighter fuels like gasoline, diesel, and jet fuel. These catalysts improve efficiency and reduce sulfur content, allowing refiners to meet stricter environmental standards. Rare earths also support emission-control systems, cutting pollutants from combustion engines and industrial plants.

2. Wind and Solar: Scaling Renewables

Renewable energy’s rapid growth depends heavily on rare earths. Neodymium (Nd) and praseodymium (Pr) form powerful permanent magnets used in wind turbine generators and electric motors for grid-scale energy systems. When combined with dysprosium (Dy) and terbium (Tb), these magnets resist demagnetization at high temperatures, ensuring reliable performance in offshore and high-capacity turbines. Solar power is less dependent on rare earths, but they still play a role. Cerium (Ce) is used to polish photovoltaic glass, while yttrium (Y) and europium (Eu) enhance the efficiency of LEDs and smart grid technologies that complement solar installations.

3. Nuclear Energy: Safety Through Precision

In nuclear power, safety and control are paramount. Samarium (Sm), gadolinium (Gd), and holmium (Ho) serve as neutron absorbers in control rods, regulating the fission process inside reactors. These rare earths provide a margin of safety by ensuring reactors operate within stable limits. Additionally, yttrium (Y) and cerium (Ce) are used in advanced ceramics and coatings, designed to endure radiation exposure and extreme heat, extending the lifespan of reactor components.

4. Natural Gas: Cleaner Combustion and Efficiency

Natural gas is often viewed as a bridge fuel in the energy transition, and rare earths enhance its role. Lanthanum (La) and cerium (Ce) catalysts are applied in gas-to-liquids (GTL) conversion and in improving the efficiency of liquefied natural gas (LNG) processing. Rare earth-based alloys and coatings also improve durability in gas turbines, allowing them to operate at higher temperatures with greater efficiency and reduced emissions.

The rare earth elements (REE) market is growing rapidly, driven in large part by demand from energy industries. As of 2024, estimates for the global rare earth elements market range between USD 3.9 billion and USD 12.44 billion. Projections suggest steep growth: one forecast puts the total at USD 37.06 billion by 2033, with a compound annual growth rate (CAGR) of ~12.8% from 2025 to 2033, primarily fueled by use in wind turbines, EV motors, and clean energy technologies. Other reports show more conservative but still robust growth— for example, from roughly USD 5.14 billion in 2024 to USD 7.39 billion by 2030 in the rare earth metals sub-market.

As the world pursues decarbonization, rare earths will be as important as lithium, cobalt, or nickel. For oil refiners, they mean cleaner fuels; for wind and solar developers, higher efficiency; for nuclear operators, safer reactors; and for natural gas producers, improved performance. The challenge ahead is not whether these minerals are needed, but whether the industry can secure sustainable, diversified supply chains to meet rising demand.

References

https://www.reuters.com/sustainability/climate-energy/rare-earth-prices-hit-two-year-peak-after-mp-materials-stops-china-shipments-2025-08-26

https://discoveryalert.com.au/news/rare-earth-concentrate-price-q3-2025-trends/

https://www.imarcgroup.com/rare-earth-industry

https://www.imarcgroup.com/rare-earth-industry

https://www.marketsandmarkets.com/PressReleases/rare-earth-metals.asp