Rare Earth Elements

The Federation of American Scientists' Secrecy News blog today highlights a recent Congressional Research Service report on "rare earth elements" used in a whole bunch of applications -- from jet fighter engines to flat panel displays. According to the report:

The concentration of production of rare earth elements (REEs) outside the United States raises the important issue of supply vulnerability. REEs are used for new energy technologies and national security applications. Is the United States vulnerable to supply disruptions of REEs? Are these elements essential to U.S. national security and economic well-being?

There are 17 rare earth elements (REEs), 15 within the chemical group called lanthanides, plus yttrium and scandium. The lanthanides consist of the following: lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium. Rare earths are moderately abundant in the earth’s crust, some even more abundant than copper, lead, gold, and platinum. While more abundant than many other minerals, REE are not concentrated enough to make them easily exploitable economically. The United States was once self-reliant in domestically produced REEs, but over the past 15 years has become 100% reliant on imports, primarily from China, because of lower-cost operations.

In February 2009, a Pentagon board ruled that specialty metals are not materials critical to national security for which only a U.S. source should be tapped, eliminating a national security reason for the Defense Department to ensure a long-term domestic supply of such materials. As InsideDefense.com reported at the time:

John Young, the defense acquisition executive, submitted the finding to Congress in a Jan. 26 report mandated by lawmakers. The report followed a Dec. 12 meeting of the Strategic Materials Protection Board, chaired by Young and composed of representatives from the Office of the Secretary of Defense, the service acquisition executive offices and the under secretary of defense for intelligence.

The Strategic Materials Protection Board discussed and approved the definitions of strategic and critical materials proposed by the executive secretary during its meeting, the report states.

"As a result of the modified definition for critical materials, any material designated as critical will require a risk assessment and a strategy to ensure domestic availability," the committee explains.

The status of specialty metals used to make sensors, armored vehicles, satellites and other items has long been a congressional concern. The Fiscal Year 2007 Defense Authorization Act mandated the creation of the Strategic Materials Protection Board to oversee their use.

A year later, the FY-08 Defense Authorization Act directed the board to assess the extent to which domestic producers of strategic materials are investing in a sustained way in the processes, infrastructure, workforce training and facilities needed for the continued domestic production of such materials.

The Jan. 26 report concludes that the critical nature of a material is a function of its importance in DOD applications. It also assesses the extent to which department actions are required to shape and sustain the market and the impact and likelihood of supply disruption.