The video explores the critical importance of rare earth elements in modern technology and the complex geopolitical and environmental issues surrounding their extraction and distribution. It begins by highlighting the role of rare earths in everyday items like cars and precision missiles, how these elements are found at the end of the periodic table, and their various uses such as enhancing colors in TVs and facilitating energy efficiency in appliances. The narrative then shifts to China’s near-monopoly and the strategic implications this holds, especially for countries like the United States that initially pioneered their use but now rely heavily on imports.

The video describes the global dynamics of rare earth mining, particularly focusing on China's strategic maneuvers and investments to dominate this industry. It recounts the historical progression of rare earth elements from geological curiosities to pivotal components in high-tech industries. It also discusses environmental concerns and production challenges associated with rare earth mining, underscoring an incident in 2010 when China curtailed exports to Japan, setting off alarms worldwide regarding dependency and control over these essential materials.

Main takeaways from the video:

Please remember to turn on the CC button to view the subtitles.

Key Vocabularies and Common Phrases:

1. monopoly [məˈnɑːpəli] - (n.) - The exclusive possession or control of the supply or trade in a commodity or service. - Synonyms: (domination, control, exclusivity)

The reason is that one country has a virtual monopoly, roughly 90%, of the mining, refining and processing of rare earths. China.

2. phosphorescent [ˌfɒsfəˈrɛsnt] - (adj.) - Emitting light without heat; a glow produced by absorbing light and then releasing it gradually. - Synonyms: (glowing, luminescent, radiant)

Some of them are phosphorescent.

3. catalytic converter [ˌkætəˈlɪtɪk kənˈvɜːrtər] - (n.) - A device in an automobile's exhaust system that reduces harmful emissions by catalyzing a chemical reaction. - Synonyms: (emission control device, exhaust catalyst, converter)

They're also in our cars in the form of catalytic converters, sensors, and hybrid car batteries.

4. hybrid [ˈhaɪbrɪd] - (adj.) - Made by combining two different elements; mixture of two things. - Synonyms: (crossbreed, composite, combination)

Hybrids in particular use a lot more because they contain electric motors that would not function without rare earths.

5. revolution [ˌrɛvəˈluːʃən] - (n.) - A dramatic and wide-reaching change in conditions, attitudes, or operation. - Synonyms: (transformation, upheaval, modification)

It's especially troubling because it was the United States that started the rare earth revolution in the first place.

6. dormant [ˈdɔːrmənt] - (adj.) - In a state of rest or inactivity; temporarily inactive or not growing. - Synonyms: (inactive, resting, asleep)

The mine lay dormant for a decade, giving China an opportunity.

7. foresee [fɔrˈsi] - (v.) - To predict or be aware of a future event beforehand. - Synonyms: (anticipate, predict, envisage)

So did we just not foresee what they foresaw?

8. moonshot [ˈmuːnˌʃɒt] - (n.) - A costly and challenging project; an ambitious or audacious goal. - Synonyms: (endeavor, venture, aspiration)

It's kind of like the Chinese moonshot.

9. geopolitical [ˌdʒiːəʊpəˈlɪtɪkəl] - (adj.) - Relating to politics, especially international relations, as influenced by geographical factors. - Synonyms: (politico-geographical, territorial, strategic)

The reason is that one country has a virtual monopoly, roughly 90%, of the mining, refining and processing of rare earths.

10. constraints [kənˈstreɪnts] - (n.) - Limitations or restrictions. - Synonyms: (restrictions, limitations, boundaries)

Almost no environmental constraints around mining.

Rare Earth Elements, Deep Sea Mining and Ultra Deep Mining - 60 Minutes Full Episodes

What do cars, precision guided missiles, and the television you're watching right now have in common? They all depend on something called rare earth elements. Unusual metals that are sprinkled inside almost every piece of high tech you can think of. Most people have never heard of them, but we have become so reliant on rare earths that a few years ago, an intense global power struggle broke out over their free flow. The reason is that one country has a virtual monopoly, roughly 90%, of the mining, refining and processing of rare earths. China. And in 2010, it used that power to disrupt the world's supply.

It's especially troubling because it was the United States that started the rare earth revolution in the first place. It all began here at this mine in Mountain Pass, California, an hour west of Las Vegas. When geologists first identified rare earth elements deep in the Mojave Desert, they were considered geological oddities. Until the 60s, when it was discovered that one of these elements, europium, enhanced the color red in TV sets. And soon the rare earth industry was born. CBS presents this program in color.

Rare earth chemistry is fascinating. There's so many more things that we could be doing with rare earths. Constantine Karriannopoulos, chairman of Molly Corp. Which has owned and operated the Mountain Pass mine for six days. Decades took us to the heart of the operation. Is this considered a big mine in terms of rare earth standards? Yes, it's one of the biggest in the world. Are we actually walking on rare earth elements right now? We're physically on the ore body. We are right on it. It starts at the top of the mine and comes down and we're walking on it and it goes in that direction.

So what are rare earth elements? If you ever took high school chemistry, you learn that they're clumped together at the end of the periodic table, atomic numbers 57 through 71, and they have difficult to pronounce Greek or Scandinavian names. Lanthanum, cerium, neodymium, praseodymium, samarium, terbium. Some of them are phosphorescent. Erbium amplifies light and is used in fiber optic cables. Gadolinium has magnetic properties and is used in MRI machines and X rays. As for neodymium, you may be carrying some of it in your pocket.

Next time your phone vibrates, think of us. Because the vibration motor is a small motor that contains a tiny neodymium magnet in it. Karriannopoulos showed us around a new model home to illustrate that rare earths are making our appliances energy efficient. Like state of the art refrigerators, touch screen thermostats, energy efficient light bulbs, the air conditioning systems. They're also in our cars in the form of catalytic converters, sensors, and hybrid car batteries. Hybrids in particular use a lot more because they contain electric motors that would not function without rare earths.

A Prius has roughly 25 pounds of rare earths, and they're hidden in plain sight in our everyday lives, in our computers and gadgets. Even the lights and cameras we use to film this story are chock full of rare earths. What I'm getting from you is that modern life depends on these elements. Absolutely. Despite their name, rare earths are not rare. Small amounts can be found in your backyard. They're trapped in what looks like ordinary rock. But there are only a few places on earth with concentrations high enough to mine. Rare earths normally are found in very, very low concentrations.

This is probably running something in the 25% grade, which is remarkable to anyone who has ever worked with rare earths. This is a thing of beauty. But getting the rare earths out of that rock is nasty business, requiring toxic acids and lots of water. In fact, the mine was shut down by the state of California in 1998 after radioactive water seeped into the surrounding Mojave Desert from an underground pipe. The mine lay dormant for a decade, giving China an opportunity.

The Chinese made a very conscious decision to enter that industry. Dan McGrorty was special assistant to President George H.W. bush and today advises the U.S. government on critical materials. When the Mali Corp. Mine closed, he says China was already well on its way to becoming the king of rare earths. There's a point at which the lines cross. The United States. Production declines. Chinese production is ramping up. Those lines cross somewhere around 1986.

So how did they pull it off? What were the factors that allowed them to basically take this away from us? Well, the advantage of lower labor costs would be a place to start. Also environmentally, very. Almost no environmental constraints around mining. Safety considerations for the miners doing the mining in huge contrast to the United States. So that translates directly into lower pricing. Yeah. And lower pricing can push other people out of the market. And that's basically what happened. That's basically what happened.

The Chinese also had orders from the top. In a little notice speech in 1992, Deng Xiaoping signaled China's intention to corner the market. What exactly did he say? The Middle east has oil. China has rare earths. He actually said that. Deng chopping. I think it's fair to say at that point, people in the rest of the world would have been saying, what is he talking about? Just went right over our heads, I think. So did we just not foresee what they foresaw? It's extraordinary if they actually foresaw all the uses.

Our designers and developers advanced the miniaturized applications for laptops and cell phones while the Chinese were going after the metals and materials out of which these things are actually built. How did they get the know how? An enormous amount of investment. It's kind of like the Chinese moonshot the moon program. China poured billions into the industry, ignoring the consequences. We obtained this video from a freelance cameraman showing the area near Baotou, China's rare earth capital, where the air, land, and water are so saturated with chemical toxins, the Chinese have had to relocate entire villages.

This is one of the few places where rare earths are turned into metals, which are then alloyed or blended into things like permanent magnets. These are magnets that once you magnetize them, they stay that way. Ed Richardson, president of the U.S. magnetic Materials association, says the most important use of rare earths is in magnets. Only a small amount can produce magnets able to lift a thousand times their weight. This is a cell phone.

He showed us how miniaturized rare earth magnets can be. So I'm going to take it apart layer by layer, and we're going to get to the point where we can actually see the magnets, the rare earth magnets that are inside them. Oh, let me see this magnetic. There's three little maggots in there. Oh, one, two, three. Right. If you put the paper clip on there, you can see how it sticks. And this little tiny thing is the speaker. Right? This is how devices have gotten small. Very powerful. Because the magnets are so powerful, you don't have to use much of it.

The US Developed this technology, but China bought most of it right out from under us. For instance, in 1995, China bought the biggest American rare earth magnet company, Magnaquench, which was based in Indiana. When they bought the factory, they now had the patents, they now had the equipment, and they actually had some of the Magnequench employees in the United States go to China and teach the people how to make the products. Did we not understand the strategic importance of communication keeping that industry here? We didn't get it.

And unfortunately, the technology was transferred to China before that technology was appreciated. And now we're seeing so many, for instance, defense systems that are dependent on it. Does that make us dependent on China for our defense systems? Oh, we are Very dependent on China. We are dependent on China for our weaponry. Right? A A prime example of that is the new F35 fighter jet. The most technologically advanced weapon system in history. Each one contains nearly half a ton of rare earths.

Former White house official Dan McGrorty says that's just for starters. The guidance systems on weapons systems and Tomahawk cruise missile. Any of the smart bombs have rare earths in them? Lasers. I'd be hard pressed to name anything that we consider worth building today. Today and going forward that would not have a rare earth component. Because of this, because of the monopoly on rare earths, does China threaten our national security unchecked? Yes.

What finally woke up the US government was an incident at sea in 2010. A Chinese fishing trawler rammed a Japanese Coast Guard ship in a territorial dispute. The Japanese seized the boat's captain and two weeks later, China stopped shipping rare earths to Japan. The Chinese cut them off and for 30 to 40 days, the rare earths did not flow to Japan. So it was a real shot across the bow to the Japanese that this is something that you have to be worried with. It was a wake up call.

Finally, 20 years after Deng Xiaoping's speech, rare earths were on the US Radar screen. This case involves something called rare earth materials. President Obama announced a formal complaint to the World Trade Organization against China for creating shortages for foreign buyers. And last August, the WTO ruled against Beijing. No one in the Obama administration would talk to us on camera about rare earths and our dependence on China, including the Department of Energy, the Pentagon, or the US Trade Representative.

Even the private sector didn't want to discuss the problem. We tried to get interviews with heads of companies that use the magnets and other products coming out of China and they would not talk to us. Is there fear in high tech companies that if they say something negative, maybe China won't sell them what they need? I think that there is grave concern in these companies, but perhaps not a willingness to talk about that on the street corner.

So what is the US doing to restore the industry here? Out in California, Molly Corp. Was allowed to reopen after it developed new technology that protects the environment. But even when it's at full capacity, the mine will only produce a fraction of the world's supply of rare earths. The Pentagon has begun stockpiling rare earths and industry is researching new technologies that would replace them. Do you get any help from the US Government? They want to have a rare earth industry here. Encouragement. Yeah, encouragement. That's It. Yeah.

The government is not offering incentives like tax breaks or subsidies that would lure businesses into the market. What needs to change to bring more of the industry back to the United States? Well, first of all, we need to take a long term view. It took 20 years to lose the dominant position. At least 20 years. And it's probably going to take us 10, 15 years if we execute for some of these supply chains to start coming back. But trouble is once again looming for the U.S. rare earth industry.

Since restarting operations two years ago, MollyCorp's Mountain Pass mine has yet to turn a profit and is so deeply in debt that just last week, its own auditor warned it may not be able to stay in business.

TECHNOLOGY, ECONOMICS, GLOBAL, RARE EARTH ELEMENTS, CHINA, RESOURCE MANAGEMENT, 60 MINUTES