Toward the Circular Economy of Rare Earth Elements: A Review of Abundance, Extraction, Applications, and Environmental Impacts

Rare earth elements (REEs) are increasingly critical to the high-technology and low-carbon economy. With a shift to sustainable socioeconomic development that aims to be less fossil fuel dependent, global demand for REEs continues to rise, despite their uncertain supply chain and high environmental impact of production. Here, we review recent research on REEs, including global reserve assessment, REE-based applications, major REE production pathways, environmental impacts, and the potential to leverage circular economies within the REE industry. The main objective of this review is to provide an overall socioeconomic and environmental perspective of the REE industry with a central focus on environmental impacts of various REE-related activities. The literature reveals significant interest in extracting REEs from secondary materials (e.g., tailings, bauxite residues, coal combustion ash) and electronic wastes. However, some of these REE recovery processes are not yet economically profitable and environmental-friendly. Continued technological advancements and increasing demands for REEs may entice countries with recently discovered REE reserves to break the current monopolistic REE supply chain. Furthermore, the sustainability of REE usage may also depend on consumer awareness of environmental and human health impacts associated with end-of-life electronics that contain REEs. On the other hand, REEs may show promise in sustainable agriculture and environmental applications. Nevertheless, further research on REE ecotoxicological impacts is required to establish environmental regulations that protect the environment and human health.