Energy-Critical Elements (ECEs) an emerging mining sub-sctor

Everyone by now knows about Rare Earth Elements (REEs) and the role they play in green energy technologies. Within the REE sector, there are a range of rare earth metals that are particularly crucial to clean energy production, including solar, wind, fuel cells and more.

The following is an excerpt from today's Energy & Capital newsletter by Nick Hodge, who himself is quoting from a recent report by the American Physical Society and Materials Research Society about “Energy Critical Elements”.

Here are some of the salient points:

Energy-related systems are typically materials intensive. As new technologies are widely deployed, significant quantities of the elements required to manufacture them will be needed. A shortage of these “energy-critical elements” (ECEs) could significantly inhibit the adoption of otherwise game-changing energy technologies.

This, in turn, would limit the competitiveness of U.S. industries and the domestic scientific enterprise and, eventually, diminish the quality of life in the United States.

The U.S. already relies on other countries for more than 90% of these elements. Some simply aren't abundant in the earth's crust; others aren't adequately concentrated.

A few are located in only a couple countries (like China), which makes their production and availability susceptible to manipulation.

Rhenium, for example, is rarer than gold by a factor of five. We need it for jet engines and industrial gas turbines.

Tellurium is quite rare, too. And without it, First Solar (NASDAQ: FSLR) couldn't make its famous thin film solar panels.

It's the high demand for these critical elements that has led to their high prices — and therefore the big market returns they've produced so far. Many more big winners are on the way from this situation.

That said, here's a list of energy critical elements and their uses as described by the report:

Gallium, germanium, indium, selenium, silver, and tellurium, all employed in advanced photovoltaic solar cells, especially thin-film photovoltaics

Dysprosium, neodymium, praseodymium, samarium (all REEs), and cobalt, used in high-strength permanent magnets for many energy-related applications, such as wind turbines and hybrid automobiles

Most REEs, valued for their unusual magnetic and/or optical properties: examples include gadolinium for its unusual paramagnetic qualities and europium and terbium for their role in managing the color of fluorescent lighting; yttrium, another REE, is an important ingredient in energy-efficient solid-state lighting

Lithium and lanthanum, used in high-performance batteries

Helium, required in cryogenics, energy research, advanced nuclear reactor designs, and manufacturing in the energy sector

Platinum, palladium, and other PGEs, used as catalysts in fuel cells that may find wide applications in transportation; cerium, a REE, is also used as an auto-emissions catalyst

Rhenium, used in high performance alloys for advanced turbines


Many potential ECEs are not found in concentrations high enough to warrant extraction as a primary product, given today’s prices. Instead, these ECEs are obtained primarily as by-products during the refining process of other primary ores, especially copper, zinc, and lead. Joint production complicates attempts to ramp up output by a large factor.

Because they are relatively scarce, many ECEs are available only in low-grade ores, which necessitates the processing of tons of rock for each gram of element recovered, sometimes in ways that do unacceptable environmental damage.


Companies producing ECEs include:

Quest Rare Minerals (AMEX: QRM)

Molycorp (NYSE: MCP)

Avalon Rare Metals (AMEX: AVL)

China Shen Zhou Mining & Resources (AMEX: SHZ)


Do your research, and happy hunting!

Publicly-traded Rare Earth Elements stocks to watch

Rare Earth Minerals stocks, investing in Rare Earth Elements


Here is a list of publicly-traded Rare Earth Elements stocks:

Alkane Resource Ltd. (ASX:ALK, PK:ALKEF)

Arafura Resources Ltd. (ASX:ARU, PK:ARAFF)

Avalon Rare Metals Inc.(TSX:AVL, AMEX:AVL)

Canadian International Minerals Inc (CVE:CIN)

Commerce Resources Corp. (TSXV:CCE)

Frontier Rare Earths Ltd. (TSX:FRO)

Great Western Minerals Group Ltd. (TSX.V:GWG, OTCBB:GWMGF)

Greenland Minerals and Energy Ltd. (ASX:GGG, PK:GDLNF)

Hudson Resources Ltd. (TSX.V:HUD, OTCQX:HUDRF)

IBC Advanced Alloys (IBC)

Kirrin Resources Inc. (TSX VENTURE:KYM)

Lomiko Metals Inc. (TSX-V:LMR)

Lynas Corporation Limited (ASX:LYC)

Matamec Explorations Inc. (TSX.V:MAT, PK:MTCEF)

Medallion Resources Ltd (TSX-V: MDL)

Molycorp Inc (NYSE:MCP)

Navigator Resources Ltd. (ASX:NAV)

Quantum Rare Earth Developments (TSX.V:QRE)

Quest Minerals(QRM.V)

Rare Element Resources (TXS:C.RES)

Stans Energy Corp. (TSX: V.RUU)

Tasman Metals (TSM.V)



As of January 2011, here is a list of 17 Rare Earth Elements mining projects (TMR Advanced Rare-Earths Project Index), and the rare earth minerals mining companies that are behind these ventures (list courtesy of Resource Investor – News That Trades)

Bear Lodge (Bull Hill Zone) – Wyoming, USA : Rare Element Resources Ltd. (TSX.V:RES, AMEX:REE)

Cummins Range – Western Australia, Australia : Navigator Resources Ltd. (ASX:NAV)

Dubbo – New South Wales, Australia – Alkane Resource Ltd. (ASX:ALK, PK:ALKEF)

Hoidas Lake – Saskatchewan, Canada : Great Western Minerals Group Ltd. (TSX.V:GWG, OTCBB:GWMGF)

Kangankunde – Balaka, Malawi : Lynas Corporation Ltd. (ASX:LYC, PK:LYSCF)

Kutessay II – Chui, Kyrgyzstan : Stans Energy Corp. (TSX.V:RUU)

Kvanefjeld – Kujalleq, Greenland : Greenland Minerals and Energy Ltd. (ASX:GGG, PK:GDLNF)

Mount Weld – Western Australia, Australia : Lynas Corporation Ltd. (ASX:LYC. PK:LYSCF)

Mountain Pass – California, USA : Molycorp Inc. (NYSE:MCP)

Nechalacho (Thor Lake Basal Zone) – Northwest Territories, Canada : Avalon Rare Metals Inc.(TSX:AVL, AMEX:AVL)

Nolans Bore – Northern Territory, Australia : Arafura Resources Ltd. (ASX:ARU, PK:ARAFF)

Norra Karr – Småland, Sweden : Tasman Metals Ltd. (TSX.V:TSM, PK:TASXF, F:T61)

Sarfartoq (ST1 Zone) – Qaasuitsup, Greenland : Hudson Resources Ltd. (TSX.V:HUD, OTCQX:HUDRF)

Steenkampskraal – Western Cape, South Africa : Great Western Minerals Group Ltd. (TSX.V:GWG, OTCBB:GWMGF) & Rare Earth Extraction Co. Ltd.

Strange Lake (B Zone) – Quebec, Canada : Quest Rare Minerals Ltd. (TSX.V:QRM)

Zandkopsdrift – Northern Cape, South Africa : Frontier Rare Earths Ltd. (TSX:FRO)

Zeus (Kipawa) – Quebec, Canada : Matamec Explorations Inc. (TSX.V:MAT, PK:MTCEF)



Member companies of the Bloomberg Rare Earth Mineral Resources Index and their respective weightings:

Company Ticker Symbols Weighting (%)

Molycorp Inc. NYSE:MCP 16.4

Lynas Corporation Ltd. ASX:LYC, PK:LYSCF 15.0

Avalon Rare Metals Inc. TSX:AVL, AMEX:AVL 11.4

Rare Element Resources Ltd. TSX.V:RES, AMEX:REE 11.2

Arafura Resources Ltd. ASX:ARU, PK:ARAFF 10.0

Greenland Minerals and Energy Ltd. ASX:GGG, PK:GDLNF 6.7

Quest Rare Minerals Ltd. TSX.V:QRM, PK:QSURD 6.3

Frontier Rare Earths Ltd. TSX:FRO 5.9

Alkane Resources Ltd. ASX:ALK, PK:ALKEF 5.0

Tasman Metals Ltd. TSX.V:TSM, PK:TASXF, F:T61 4.6

Great Western Minerals Group Ltd. TSX.V:GWG, OTCBB:GWMGF 4.2

Navigator Resources Limited ASX:NAV 2.1

Matamec Explorations Inc. TSX.V:MAT, PK:MTCEF 1.2



Many Happy Returns in 2011!


(Note of Caution: Investing in individual equity securities is for high risk investors, and junior mining stocks have added speculative risk on top of that. Medium risk investors should seeking exposure to the industry may want to research and invest in resource funds with a significant Rare Earth Elements component, and even then as part of a widely diversified portfolio)