15:10 GMT30 July 2021
Listen Live
    Russia
    Get short URL
    4456
    Subscribe

    Russian manufacturers have reached a breakthrough in production of rare earth metals, elements that are used in the field of innovations and are of high value on the global market.

    In July 2016, a factory was opened in Veliky Novgorod where a new patented technology is being used to produce rare earth elements.

    According to the plant's Deputy Director for Production Development of Production, Andrey Kolosovsky, the new technology enables extraction of raw materials "almost from nothing," namely from the waste left after the production of fertilizers.

    "The industrial complex Akron has already implemented the project aimed at comprehensive processing of apatite-nepheline ores and obtaining rare-earth elements from them. Cerium, lanthanum, neodymium and [other metals] are being made from the products of processing of apatite concentrate," Kolosovsky told Sputnik France.

    Rare earth metals (REM) are used in various spheres ranging from high-tech to advanced defense innovations. They have a high value in the international market and cost thousands of dollars per kilogram. A country that possesses such metals or is able to produce them has, therefore, a very advantageous economic position.

    Ninety-five percent of rare earth elements production is based in China, which controls the global market and dictates prices. In 2010, China sharply reduced exports and market prices soared by 5-10 times. In 2012, under the threat of WTO sanctions, it partially restored the export of REM, but the problem of REM scarcity has become apparent for many countries.

    The new project will help Russia to partially solve this issue. It will give Russia a chance not only to cover its own needs, but also to increase its export capacity and compete with China.

    Although the production of rare earth metals in Russia makes only about 2% of world production, Russia officially has the second largest REM reserves. According to experts' assessments, in the future REM can become a major Russia's export producer alongside with oil.

    "By 2020, the global demand for rare earth metals will grow by 1.5 times, reaching 190,000-200,000 tonnes a year. The key REM consumers are the countries with high-tech economies, including China (54%), Japan and South Korea (24%), Europe — mainly Germany and France (13%), and the US (8%)," Kolosovsky told Sputnik.

    French expert and President of Ecole Polytechnique in Paris, Jacques Biot, also told Sputnik France that the situation in the global REM market is gradually improving due to Russia's progress in the field.

    "I have an impression that the situation in the REM market is now a little bit more relaxed compared with the period of five years ago when there was a Chinese monopoly and the crisis related to it [..] I suppose that Russia's rise in the market has contributed to [the relief]. I am sure that the production conditions in Russia are excellent," Biot said.

    Related:

    Russia to Resume Oil Supplies to Belarus, Minsk to Lift Transit Tariff Hikes
    Russia to Restore Planned Duty-Free Oil Deliveries to Belarus
    Tags:
    Russia, rare-earth metals, waste, oil, production, exports
    Community standardsDiscussion