Ramon Barua Costa, CEO of Aclara Resources, outlines how a resilient rare earth elements supply chain requires collaboration across industries, governments, and local communities to ensure that production aligns with the highest environmental and social standards.
The growing demand for clean technologies, such as electric vehicles and offshore wind turbines, has made rare earth elements (REE) crucial for the global shift to sustainable energy. Materials like neodymium and dysprosium are essential for producing permanent magnets that power these technologies, which are vital in combating climate change. To meet this demand sustainably, developing a vertically integrated and diversified REE supply chain is essential, minimising environmental impact while ensuring long-term, stable access to these critical resources. However, current supply vulnerabilities could disrupt the deployment of clean technologies and impede progress toward global environmental goals.
To ensure a reliable supply of rare earth elements, global industries must focus on creating diversified and vertically integrated supply chains. This approach not only enhances supply chain resilience, but also reduces reliance on a few concentrated sources of REEs. One key strategy involves expanding mining and refining capabilities in new geographic areas.
Aclara Resources is setting an industry benchmark with its commitment to sustainability, aiming to develop a cleaner, more efficient supply chain for rare earth elements through strategic partnerships with industry leaders in the permanent magnet sector. For example, the company has partnered with VACUUMSCHMELZE GmbH & Co. KG (VAC), the largest producer of rare earth permanent magnets. This collaboration aims to establish an independent, reliable supply of permanent magnets – crucial components for numerous clean technologies – thereby contributing to the development of a stable and sustainable REE market.
Moreover, Aclara’s efforts to establish a REE separation and purification business in the US through its subsidiary Aclara Technologies Inc., highlight the importance of localised processing. Localised facilities not only reduce environmental impacts by minimising the need for transporting raw materials over long distances, but they also enhance supply security for industries in key sectors like automotive, renewable energy, and electronics.
The transition toward a vertically integrated REE supply chain is essential for the global economy’s shift to sustainable technologies. It ensures that as demand for rare earths grows, industries have access to the materials they need without compromising environmental standards or relying on a limited number of suppliers. By investing in sustainable mining, refining, and production processes, companies like Aclara Resources are driving innovation that supports the shift to renewable energy solutions.
In the end, building a resilient and sustainable rare earth elements supply chain requires collaboration across industries, governments, and local communities. By working together, these stakeholders can ensure that REE production aligns with the highest environmental and social standards, meeting the growing global demand for clean technologies while minimising ecological impacts. Through strategic partnerships, technological innovation, and a commitment to sustainability, we can secure a stable and responsible supply of rare earth elements for a cleaner, greener future.
