The United States has long pursued energy independence, dating back to the 1970s oil crisis under President Jimmy Carter. However, despite efforts to secure domestic resources, the country remains heavily reliant on China for rare earth elements (REE). China supplies nearly 75% of U.S. REE needs and dominates global refining, controlling 89% of neodymium and praseodymium production, which are crucial for electric vehicle magnets.
Other U.S. REE imports from countries like Estonia, Japan, and France are still dependent on Chinese materials, making the U.S. vulnerable to supply chain disruptions. In 2023, China banned the export of rare earth extraction technology to protect its industry, further complicating the situation.
Coal Ash as a Sustainable Rare Earth Source to Reduce US Dependency
Researchers at The University of Texas at Austin have identified a potential solution to U.S. rare earth dependency: coal ash. Their study estimates that U.S. coal ash contains 11 million tons of rare earth elements, nearly eight times the country’s known reserves. Coal ash, a powdery byproduct of burning coal for fuel, has traditionally been treated as industrial waste.
This discovery represents the first national assessment of coal ash as a viable source of REEs. Extracting these elements from coal ash could help reduce U.S. reliance on China while also addressing environmental concerns associated with coal waste.
Coal Ash Emerges as a Key Resource in US Efforts to Reduce Rare Earth DependencyOne major advantage of extracting rare earth elements from coal ash is that the combustion process has already separated the minerals from their original ore, eliminating the need for energy-intensive refining steps. This reduces both costs and environmental impacts. The vast availability of coal ash across the country makes it an attractive resource.
According to researchers, different coal basins contain varying concentrations of REEs, affecting their extractability. The Appalachian Basin has the highest concentration of REEs, but only 30% is extractable, whereas the Powder River Basin has a lower concentration but a higher extractability rate of 70%, making it a more feasible option for large-scale recovery.
Securing Rare Earth Supply Chains a Strategic Imperative for US Technology and Defense
Rare earth elements play a crucial role in modern technology, including consumer electronics, electric vehicles, wind turbines, medical equipment, and military hardware. For instance, lanthanum is a key component in smartphone cameras and EV batteries, while neodymium and samarium enhance the strength of magnets used in various applications.
With increasing global demand, securing a steady supply of these critical minerals has become a priority for the U.S. government. The Trump administration has recognized this importance, as evidenced by discussions with Ukraine regarding its vast mineral reserves. However, negotiations have stalled due to differing priorities between the two nations.
While the U.S. explores domestic solutions like coal ash extraction, other countries are positioning themselves as alternative REE suppliers. Australia’s Lynas Rare Earths has declared its capability to supply the West with the necessary resources and expertise to process them economically.
CEO Amanda Lacaze emphasized that Lynas possesses the skills and resources needed to guarantee supply outside of China. These developments highlight a growing urgency for the U.S. to establish secure and diversified REE supply chains to reduce dependency on geopolitical rivals and ensure the sustainability of its technological and industrial sectors.