COMMODITIES OUTLOOK
How Rare Earths are powering the green transition Rare earth elements are essential components of various modern technologies, powering electric vehicles, wind turbines, smartphones, and advanced defence systems. From industrial robotics and engineering to consumer electronics and medical applications, rare earths are found in nearly every major industrial sector.
A s the renewable energy transition praseodymium are critical for green technologies, particularly in producing high-strength permanent magnets for electric vehicle motors and wind turbines. According to the Harvard International Review, an electric car requires six times the mineral inputs of a conventional vehicle, and a wind plant requires nine times more minerals than a gas-fired plant. Data from the International Energy Agency shows global EV sales have risen from around 14 million in 2023 to over 20 million in 2025, accounting for over 25% of new accelerates, the strategic importance of these elements is also becoming more significant. Neodymium, dysprosium, and cars sold. With each electric vehicle battery requiring between 1-2 kilograms of rare earth magnet material, the expanding popularity of EVs translates directly into rising demand for these elements. Wind energy provides another key demand driver. The Global Wind Energy Council reports record new wind capacity additions in recent years, with annual installations surpassing 100 gigawatts globally in 2024. Offshore wind turbines, in particular, frequently use direct-drive
systems that incorporate large permanent magnets, significantly increasing rare earth intensity per megawatt. Together, the increased proliferation of electric vehicles and wind power has helped to sharply accelerate rare earth demand. Current projections by the Harvard International Review suggest overall demand for rare earths could increase sixfold by 2040. As a result, questions of geopolitical leverage and supply-chain resilience are moving to the forefront, with rare earths becoming a key part of industrial strategy and national security. The US Geological Survey has documented this rising consumption of rare earths over the past several years, whilst also highlighting that global mine output remains highly geographically concentrated. China dominates the sector, accounting for approximately 95% of global rare earth processing capacity, across extraction, separation, and refining, and holds approximately 44 million tonnes of reserves. By comparison, Brazil is estimated to possess around 21 million tonnes, and Australia around six million, highlighting the imbalance between resource distribution. Recent geopolitical developments have
Tim Harrison, CEO of ASX listed Ionic Rare Earths.
8 MODERN MINING www.modernminingmagazine.co.za | April 2026
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