Rare earth elements have become a major headache for global powers. These 17 metallic elements are essential for manufacturing everything from smartphones to missiles, but their supply is heavily concentrated in China. Beijing's dependence on this strategic sector has put the United States, Europe, and other countries on alert, as they desperately seek alternatives.
In this context, Spain has begun to take action. The government has announced the use of artificial intelligence to prospect for rare earth elements in the Iberian Peninsula, an initiative that joins others in Europe to ensure access to these critical minerals. The strategy involves diversifying supply sources and reducing exposure to a market dominated by China, which controls around 70% of global production and 90% of processing.
Dependence on China, a global problem
China's dominance is no small matter. According to data from the U.S. Geological Survey, the Asian giant produces more than 60% of the world's rare earth elements, and its control over refining them is even greater. The United States, for example, relies on China for 70% of its imports of these materials, a situation that has led the Pentagon to seek alternative suppliers. The recent decision by Chinese suppliers to halt shipments to Washington for fear of sanctions has raised alarm bells in the U.S. military industry, which needs these elements for systems such as the F-35 fighter jet and the Virginia-class submarines.
In Europe, the situation is not much better. Although not as heavily dependent as in the United States, the European Union imports most of its rare earth elements from China. For this reason, Brussels has been developing strategies for years to secure supply, and Spain has positioned itself as a key player in this strategy. The Iberian Massif and the Pyrite Belt, among other areas, are being studied to locate deposits of lithium, tantalum, neodymium, and praseodymium —essential elements for the ecological transition and the technology industry.
Spain and AI to find treasures underground
Spain's Minister for Digital Transformation, Óscar López, recently presented a plan that uses artificial intelligence to accelerate the exploration of critical minerals. The idea is to process decades of geological records, satellite imagery, and geophysical data to identify areas with potential. AI allows for reduced exploration costs and timelines while minimizing environmental impact by avoiding unnecessary drilling. This approach is already being implemented on the Iberian Peninsula, where efforts are underway to quantify reserves of rare earth elements and other strategic minerals.
This Spanish initiative is part of a broader European trend to strengthen technological sovereignty. The European Commission has identified rare earth elements as one of the most critical materials for the green and digital transition. The manufacture of chips, batteries, and wind turbines depends on these elements, and Europe does not want to fall behind in the global race to secure a stable supply. With AI as an ally, Spain hopes to reduce its dependence and transform its subsoil into a strategic asset.
New sources of supply: waste and Brazil
While Spain looks to the subsoil, other countries are exploring less conventional avenues. A study by the University of Texas at Austin has revealed that coal ash accumulated over decades can contain concentrations of rare earth elements up to ten times higher than those of the original coal. It is estimated that in the United States alone there are some 11 million tons of these minerals in accessible ash, a value that could reach $100.000 billion. Although there is still no cost-effective process for extracting them, research is progressing with methods such as alternative acids or microorganisms.
In South America, Brazil has taken a leading role. The Senate passed a law creating a €1.187 billion fund to boost the mining, processing, and research of critical minerals. Brazil has the world's second-largest reserves of rare earth elements, with 21 million tons, second only to China. The country aims to become a global competitor in this sector, and its diversification strategy includes agreements with India and South Korea, as well as its rejection of a bilateral pact with the United States that would have imposed restrictions on foreign investment.
Goodbye to rare earth elements: motors without magnets
The other major strategy to break this dependence is to eliminate rare earth elements from electric mobility. The British company Advanced Electric Machines (AEM) has developed a motor called Titan that doesn't require neodymium or dysprosium permanent magnets, nor does it use copper. Instead, it employs steel and aluminum, materials that are much more readily available and easier to recycle. With an investment of €19 million, the company hopes to market this motor for heavy trucks and industrial machinery, thereby reducing its exposure to the fluctuations of the rare earth market.
Although Titan is still in the development phase, smaller versions of this technology are already in use, for example, in electric axles for trailers. Magnet-free motors could be a long-term solution for sectors like heavy transport, which relies heavily on rare earth elements to achieve high power. Currently, AEM holds more than 40 patents and has the backing of Newcastle University, suggesting that the technology has potential.
The game is far from over. Dependence on rare earth elements is a challenge being tackled on several fronts: the search for new deposits, waste recovery, the development of alternative technologies, and the diversification of suppliers. Spain, with its commitment to AI, and Europe in general, are trying not to fall behind in this race, while countries like Brazil are emerging as new players. Control of these minerals will be key to future technological sovereignty, and the decisions made now will determine the balance of power in the coming decades.