From the perspective of breakthrough technology development, there is currently no topic more widely discussed worldwide than the production and consumption of rare earth elements (REEs). The REE price surge initiated by China in 2010 affected virtually all industrial sectors in which these elements are used. Leading economies have become increasingly concerned about the resilience of their industries, ranging from consumer goods manufacturing to high-technology sectors such as energy, optics, communication systems, medicine, defense, and aerospace.

The application of rare earth elements across key industrial sectors can be summarized as follows:
- Energy sector: additives in nuclear fuel, wind power generation, oil cracking catalysts — lanthanum (La), cerium (Ce), neodymium (Nd), dysprosium (Dy), erbium (Er);
- Aerospace industry: structural materials — yttrium (Y), cerium (Ce), praseodymium (Pr), lanthanum (La), neodymium (Nd);
- Lasers and optoelectronics: cerium (Ce), gadolinium (Gd), erbium (Er), neodymium (Nd), dysprosium (Dy), holmium (Ho), thulium (Tm), lutetium (Lu), yttrium (Y);
- Automotive industry: automotive catalysts, batteries, hybrid vehicle motors — lanthanum (La), cerium (Ce), neodymium (Nd), dysprosium (Dy), erbium (Er);
- Electronics: microchips and display technologies — lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), holmium (Ho), yttrium (Y); virtually the entire range of REEs is used;
- Defense industries: radar and guidance systems, navigation equipment, jet engines, shaped-charge liners, and missile control actuators — nearly all rare earth elements and their compounds.

What characterizes the current state of the rare earth sector, and what are the defining features of today’s market?

Above all, rare earth elements demonstrate consumption growth rates that outpace those of most other metals. This trend is driven by two key factors.
- First, new application areas for REEs continue to emerge. In recent years, their use has expanded significantly in the production of optical fiber, data storage devices, batteries, and fuel cells. REE-based components are increasingly viewed as critical enablers of industrial and consumer-product decarbonization. One of the most promising areas of REE application is the rapidly growing electric vehicle industry. Another emerging field is the use of rare earths in solar energy technologies.
- Second, products containing rare earth elements are being manufactured in ever-increasing volumes.