Top Companies Using Rare Earth Materials and the Impact of Their Scarcity on Products

Rare earth materials play a crucial role in many modern technologies. These elements, though not actually rare in the Earth's crust, are difficult to extract and refine. Several leading companies rely heavily on rare earths to produce high-performance products that power everything from smartphones to electric vehicles. This post explores which companies use the most rare earth materials, highlights specific products, and examines what would happen if these materials became unavailable.

Companies That Use the Most Rare Earth Materials

1. Tesla

Tesla is a major user of rare earth materials, especially in its electric vehicles (EVs). The company relies on neodymium and dysprosium for the powerful permanent magnets used in its electric motors. These magnets provide high efficiency and performance, which are essential for Tesla’s long-range EVs like the Model S, Model 3, and Model Y.

• Products: Tesla Model S, Model 3, Model X, Model Y electric motors

• Rare earth use: Neodymium, dysprosium in permanent magnets

  
  

Without rare earth materials, Tesla’s motors would lose efficiency and power. The company would need to switch to induction motors or other less efficient technologies, reducing driving range and performance.

2. Apple

Apple uses rare earth elements in many of its products, including iPhones, iPads, and MacBooks. Neodymium magnets are found in speakers, microphones, and vibration units. Europium and terbium are used in display screens to produce vibrant colors.

• Products: iPhone, iPad, MacBook, Apple Watch

• Rare earth use: Neodymium magnets, europium and terbium in displays

  
  

If rare earths were unavailable, Apple’s devices would suffer from lower sound quality, less vivid displays, and weaker haptic feedback. This would impact user experience and product appeal.

3. General Electric (GE)

GE uses rare earth materials in wind turbines and medical imaging equipment. Neodymium magnets are critical in the generators of wind turbines, enabling efficient electricity generation. In MRI machines, gadolinium enhances image quality.

• Products: Wind turbines, MRI machines

• Rare earth use: Neodymium magnets, gadolinium contrast agents

  
  

Without rare earths, GE’s wind turbines would become less efficient, raising costs and reducing renewable energy output. MRI machines would lose imaging clarity, affecting diagnostics.

4. Panasonic

Panasonic incorporates rare earths in batteries and consumer electronics. The company uses lanthanum and cerium in nickel-metal hydride (NiMH) batteries, common in hybrid vehicles and portable electronics.

• Products: NiMH batteries, cameras, televisions

• Rare earth use: Lanthanum, cerium in batteries and electronics

  
  

A shortage of rare earths would limit Panasonic’s ability to produce high-capacity batteries, affecting hybrid vehicle performance and the lifespan of consumer electronics.

5. Boeing

Boeing uses rare earth materials in jet engines and avionics systems. Rare earth magnets improve the efficiency of electric motors in aircraft systems, while yttrium and cerium are used in heat-resistant coatings.

• Products: Jet engines, avionics equipment

• Rare earth use: Rare earth magnets, yttrium and cerium coatings

  
  

If rare earths were scarce, Boeing’s aircraft would face reduced engine efficiency and higher maintenance costs due to less effective heat-resistant materials.

Specific Products and Their Dependence on Rare Earth Materials

Smartphones and Tablets

Rare earth magnets enable compact speakers and vibration motors that provide tactile feedback. Phosphors containing europium and terbium create bright, sharp displays. Without these materials, devices would be bulkier, with poorer sound and screen quality.

Electric Vehicles

Permanent magnets made from neodymium and dysprosium are essential for electric motors that deliver high torque and efficiency. Batteries also rely on rare earths for improved energy density. Without rare earths, EVs would have shorter ranges and lower performance, slowing the shift to clean transportation.

Renewable Energy Equipment

Wind turbines depend on rare earth magnets for efficient generators. Solar panels use rare earth elements in certain components to improve durability and performance. A lack of rare earths would increase costs and reduce the effectiveness of renewable energy technologies.

Medical Devices

MRI machines use gadolinium-based contrast agents to enhance imaging. Rare earths also improve the performance of sensors and lasers in medical equipment. Scarcity would impact diagnostic accuracy and the development of advanced medical tools.

The Impact of Rare Earth Scarcity on Company Products

Reduced Performance and Efficiency

Rare earth materials provide unique magnetic, luminescent, and chemical properties that are difficult to replace. Without them, products would lose key features such as:

• High motor torque and efficiency in EVs

• Bright, energy-efficient displays in electronics

• Clear, detailed medical imaging

• Durable, heat-resistant coatings in aerospace

  
  

Increased Costs and Supply Chain Risks

Companies would face higher production costs as they search for alternative materials or redesign products. Supply chain disruptions could delay product launches and reduce competitiveness.

Innovation Slowdown

Rare earth scarcity could slow innovation in critical sectors like clean energy, consumer electronics, and healthcare. Companies might hesitate to invest in new technologies without reliable access to these materials.

How Companies Are Responding

Recycling and Reuse

Many companies invest in recycling rare earths from old products. For example, Apple runs recycling programs to recover rare earth elements from used devices.

Alternative Technologies

Tesla and others explore motor designs that reduce or eliminate rare earth magnets. Research into new battery chemistries also aims to reduce dependence on rare earths.

Diversifying Supply Chains

Companies work to secure rare earth supplies from multiple countries to reduce geopolitical risks. Some invest in mining projects outside China, which currently dominates rare earth production.