Vietnam’s not just getting into the global EV market through the production of new vehicles, it’s poised to become a leader in some of the materials needed for electric vehicle production.
According to a 2013 report by the U.S. Naval War College, the country holds some of the largest undeveloped rare earth element mineral deposits in the world. In fact, the southeast Asian nation possesses the second-largest known rare earth reserves in the world at 22 million tons, compared to China’s 55 million tons.
These heavy elements are found along with natural radioactive elements such as uranium. That’s important for Vietnam both because the nation is seeking to generate power using nuclear reactors, and because it provides a potential counterbalance to China’s current position as the source of most rare earth elements used in industry.
“World markets for rare earth elements are at present a near monopoly controlled by China, and it is becoming ever clearer that alternative sources for these elements are necessary,” the Navy report states.
What are rare earth elements?
There are 17 elements on the periodic table that are considered rare earths, and most are metals. Paradoxically, they’re not really very rare; most are more abundant than silver or gold. However, rare earths do not generally appear in a pure metallic form in veins or nuggets but are rather combined with other elements in compounds such as carbonate, phosphate, silicate or oxide.
Primarily, the 15 lanthanide metals begin with Lanthanum at atomic number 57 in the periodic table and end with Lutetium at atomic number 71. The elements Scandium (21) and Yttrium (39) are also considered rare earths, because they are typically found with the other rare earth elements.
Rare earths have many applications in science and industry because of their properties. The element Neodymium is particularly used to make the rare earth magnets used in EV motors. Dysprosium, Samarium, Terbium and Praesodymium are also used in motor applications. At present, 92% of rare earth magnet production happens in China.
Vietnam’s development program
Vietnam established a partnership with Japan to develop rare earth mining as early as 2012, creating a joint research center in Hanoi to study and improve production. However, China loosened its grip on rare earth exports, and production in Vietnam amounted to only 400 metric tons in 2021 but rose to 4,300 metric tons in 2022. Vietnam has now stated a goal of producing up to 2 million tons per year by 2030, and 2.11 million tons annually by 2050.
To achieve that, Vietnam may be looking to its partnership with Japan, and partnerships with Australian mining company Blackstone Minerals, which is already working in the country on a nickel-copper mining project.
“Higher output will be helped by extraction from nine mines in the northern provinces of Lai Chau, Lao Cai and Yen Bai, according to the plan signed by Deputy Prime Minister Tran Hong Ha on July 18. Vietnam will develop three to four new mines after 2030, aiming to raise its raw rare earths output to 2.11 million tonnes by 2050, the document showed,” according to a report by Reuters.
The government of Vietnam further stated that mining partnerships would be limited to companies using modern and environmentally friendly methods. Reuters also reported that Vietnam intends to export part of the expected output of refined rare earth oxides, which is targeted to be 20,000-60,000 tons by 2030, and up to 40,000 to 80,000 tons by 2050.