With greater than 35 years of expertise working in sectors centered on extracting precious supplies from the bottom, I’ve all the time been looking out for the subsequent massive factor. I wish to assume we’re after the “future metals,” those which might be going to energy our international economic system and assist make our world a cleaner and greener place. A number of years in the past, I got here into contact with parts which have the potential to redefine the geopolitical panorama: uncommon earth parts.
President-elect Donald Trump has his eye (once more) on shopping for Greenland, which additionally occurs to own one of many world’s largest identified uncommon earth deposits.
Coincidence? I believe not. After all, there could also be extra to the story, and I’ve no direct entry to Trump or his internal circle, however I do have the angle of a mining CEO—I lead Essential Metals Corp.—which on this case issues.
Chinese language bans and a Trump go to
As we speak, we are able to’t discuss uncommon earth parts with out speaking about China, the world’s dominant producer of uncommon earths, controlling greater than 90% of the market. Final month China introduced a ban on the export of sure uncommon earth minerals and metals to america. China banned shipments of gallium (important for the manufacturing of pc chips and protection functions), germanium, antimony, and different supplies which have each navy and civilian makes use of.
That is amidst a major quantity of buzz about Trump and his curiosity in shopping for Greenland, which Donald Trump Jr. not too long ago visited. I imagine that is partially as a result of Tanbreez Challenge, a foundational uncommon earth asset positioned in Greenland with greater than 4.8 billion tons of potential materials. That is among the many largest rare-earths property on this planet; one of many highest concentrations of gallium was found there this previous fall.
And now a vital disclaimer: My firm, based final yr by a merger, is targeted on essential metals and minerals, and acquired a controlling curiosity in Tanbreez final summer time. That additionally means I’m nicely aware of Greenland’s underground riches.
The Mighty 17, and why they matter
Though the roots of uncommon earth parts (“rare earths”)—a gaggle of 17 parts on the periodic desk, which I typically fondly seek advice from because the “mighty 17”—may be traced again to their discovery within the 18th century, they continue to be broadly misunderstood. Regardless of their namesake, they’re truly fairly widespread in prevalence. Nonetheless, because of their sometimes low focus in lots of ores and fast oxidation, they are often extraordinarily tough to extract. They’re damaged up into two broader classes: gentle uncommon earth parts and heavy uncommon earth parts—and for refining capability, the latter is proscribed.
Importantly, these parts are key enablers for next-generation applied sciences. They contribute to decrease emissions, decreased vitality consumption, and enhanced total vitality effectivity, efficiency, and security. They’re additionally important for making merchandise lighter and smaller.
Bolstering nationwide safety within the West
On the finish of the day, I believe, Trump believes within the significance of uncommon earth parts as a result of they’re essential to the U.S. protection business and the nation’s nationwide safety as an entire. It is because the U.S. protection business is in dire want of uncommon earths.
Mild uncommon earth parts are primarily used within the manufacturing of magnets, that are utilized in electrical automobile motors, medical gear, wind generators, and knowledge storage techniques. These are the functions which have made lots of the headlines. Nonetheless, the extra restricted heavy uncommon earth parts are essential for heavy weaponry and, in flip, nationwide protection.
The heavy uncommon earth parts are key elements for a spread of protection functions, together with superior navy techniques just like the F-35 Lightning II plane, unmanned aerial automobiles, and Virginia and Columbia class submarines.
As such, the Protection Division has been growing its concentrate on home provide chains to make sure continued entry to the uncommon earth supplies wanted to fabricate essential weapons techniques.
With the Pentagon planning a considerable improve in F-35 procurement within the coming a long time, guaranteeing a dependable provide of heavy uncommon earth parts will likely be essential. For reference, Tanbreez in Greenland has a very excessive focus of heavy uncommon parts.
The U.S. stays robust and highly effective. Nonetheless, future battles could also be gained or misplaced primarily based not on our present energy, however quite on entry to—and utilization of—the Mighty 17.
Learn extra:
- Essential minerals processing would be the equal of Nineteenth-century oil refineries—at a Rockefeller second
- Mining hasn’t advanced in a long time. The U.S. should reinvent it as China tightens its grip on essential minerals
- Donald Trump Jr. visits Greenland simply days after the U.S. president-elect introduced Washington ought to take over territory
- Can Trump purchase Greenland? What to know in addition to ‘no’
The opinions expressed in Fortune.com commentary items are solely the views of their authors and don’t essentially mirror the opinions and beliefs of Fortune.
This story was initially featured on Fortune.com
