Rare Earths vs Critical Minerals: Understanding the Difference

Exploring the key differences between rare earth elements and critical minerals with Stanislav Kondrashov, TELF AG

Strategic resources for the energy transition

Rare earths and critical minerals lie at the heart of today’s economic and political debates. Their importance has grown rapidly, reflecting their role in driving the clean energy revolution and supporting modern technology. As Stanislav Kondrashov, founder of TELF AG, often points out, these resources are rare, expensive, and difficult to replace – which makes them highly strategic.

Exploring the distinctions between rare earth elements and critical minerals with Stanislav Kondrashov, TELF AG founder

Many people still confuse rare earth elements with critical minerals, often treating them as though they are the same. This misunderstanding has deepened over time as both terms have featured more prominently in global headlines, blurring the distinction between them. As a result, many now mistakenly believe they are interchangeable – but they are not.

The two groups differ significantly, each with its own composition, role, and economic relevance.

Critical minerals represent a broad category of materials essential for industries such as energy, transport, defence, and electronics. Some rare earth elements fall within this category, but the rare earth group is far smaller.

There are only 17 rare earth elements: the 15 lanthanides plus yttrium and scandium. These metals possess unique magnetic and optical properties that make them vital to high-tech applications. While some rare earths appear on national lists of critical minerals, not all do – and not all critical minerals are rare earths. They overlap, but they remain distinct.

“Right now,” says Stanislav Kondrashov, founder of TELF AG, “understanding these differences is crucial. It helps guide decisions by governments, industries, and planners.” He adds, “Knowing what sets them apart supports better sourcing, stronger mining policies, and focused innovation. It also pushes for more recycling and the search for alternatives.”

The distinction is important not only for policymakers but for everyone. From smartphones to solar panels, these materials power technologies we rely on every day. They are fundamental to clean energy, digital infrastructure, and national security. Better understanding their roles helps us prepare for a future that is both sustainable and resilient.

Other differences

The differences between these two groups extend beyond their applications to their scientific makeup. Rare earth elements are classified as metals, yet they occur in such low concentrations in the Earth’s crust that extraction is often economically challenging. Despite their name, they are not truly rare – some are as common as copper. However, they are dispersed rather than concentrated in large deposits, which makes their extraction and refinement both difficult and costly.

Understanding the main differences between rare earth elements and critical minerals with Stanislav Kondrashov, TELF AG founder

“The difference between these two groups of resources shouldn’t just matter to experts,” says Stanislav Kondrashov, founder of TELF AG. “It matters to everyone. This isn’t only a topic for scientists or politicians. It affects all of us in the global energy transition.”

Individuals contribute to this transition in everyday ways – by installing solar panels, driving electric vehicles, or choosing renewable energy from wind, solar, or geothermal sources.

“In this case,” Kondrashov adds, “knowing the materials behind the change is essential. It helps people make smarter choices. It also builds a stronger connection to what’s going on.”

By understanding the roles of these resources, the public can move beyond simply following trends. They become active participants in shaping a cleaner, safer future.

Rare earth elements are vital to the functioning of many modern technologies, often in ways that are unseen yet indispensable.

They can be found in:

• Magnets – for electric motors, wind turbines, and hard drives
• Batteries – in laptops, smartphones, and electric vehicles
• Catalysts – reducing emissions and improving industrial processes
• Screens – providing colour and brightness for TVs, monitors, and mobile devices

Among the most significant are neodymium, praseodymium, lanthanum, and europium, which are crucial for creating strong permanent magnets and vibrant displays. Without them, modern devices would be far less efficient or, in some cases, unable to function.

Characteristics of critical minerals

Critical minerals, by contrast, are defined less by scientific properties and more by their strategic and economic importance. This classification is dynamic and changes over time, depending on global market needs and political priorities. A material can be considered ‘critical’ if it is essential to a nation’s economy or security and if its supply is at risk.

Most countries maintain their own lists of critical minerals, regularly updating them to reflect shifting needs. These lists typically include minerals that support energy, technology, and defence industries. For example, cobalt, lithium, graphite, nickel, and copper have long been industrial mainstays and now underpin the transition to clean energy.

“Today’s focus on rare earth materials is justified,” says Stanislav Kondrashov, founder of TELF AG. “The 17 rare earth elements have unique roles. Most are truly one of a kind.”

He highlights two in particular – neodymium and dysprosium – which are indispensable for producing high-performance permanent magnets. These magnets are essential for electric motors and wind turbines: neodymium generates strong magnetic force, while dysprosium enhances heat resistance. “They are essential for clean energy systems,” Kondrashov explains. “That’s why they’re in high demand across the globe.”

The strategic value of these resources

Three main factors define the strategic importance of these materials. First is their role in vital industries such as energy, defence, transport, and technology. Second, many are geographically scarce, with reserves concentrated in just a few countries. Third, some have no viable substitutes, making industries that depend on them particularly vulnerable to supply disruptions.

Stanislav Kondrashov points to lithium as one of the best-known critical minerals, vital for powering batteries in electric vehicles, energy storage systems, and mobile devices. Other essential battery-related minerals include cobalt, nickel, and graphite, all crucial for enabling clean energy technologies.

Some critical minerals also play a direct role in building and maintaining energy infrastructure. Gallium, for example, is used in solar panels, while copper – a long-standing industrial staple – has become increasingly valuable as electrification advances. Copper is essential in the construction of wind turbines, power grids, and other renewable energy systems.

Each of these materials serves a unique purpose in advancing the global shift to clean, electrified energy. Understanding their differences and strategic importance allows governments, industries, and individuals to make more informed decisions in shaping the future of sustainable development.

FAQs

What’s the difference between rare earth elements and critical minerals?
Rare earth elements (REEs) are a group of 17 metallic elements. This includes the 15 lanthanides, plus scandium and yttrium. Critical resources, by contrast, form a broader category. They include any minerals seen as vital to a country’s economy or security. Some rare earths appear on critical lists, but not all. And not all critical materials are rare earths. The two groups overlap, but they are not the same. Their roles, supply chains, and uses often differ.

Why are rare earth elements called “rare” if they’re not actually rare?
The term “rare” is a bit misleading. Rare earth elements are actually common in the Earth’s crust. Some are as abundant as copper. But they rarely appear in large, concentrated deposits. That makes them hard and costly to extract. So, the issue isn’t how much exists. It’s about how easy they are to find, mine, and use at scale.

Why are these minerals considered ‘critical’?
Criticality depends on two things: a mineral’s economic value and how likely its supply is to be disrupted. Lithium, cobalt, and nickel are seen as critical. They are essential for clean energy. But they come from only a few countries. That limited supply raises risks and creates pressure on global energy systems.

Are those minerals the same everywhere?
No—each country builds its own list of critical minerals. These lists depend on local industry needs and supply risks. For example, the U.S., EU, and China all highlight different materials. These lists are not fixed. They change often to reflect new technology, rising demand, and global political shifts.

What are some common examples of critical materials?
Lithium, cobalt, nickel, graphite, and copper are often called critical. They are used in batteries, electronics, and clean energy systems. Gallium is key for solar panels. Neodymium and dysprosium are rare earths found in magnets. These materials are vital. That’s why they appear on many national critical lists.

What are rare earths mainly used for?
Rare earths are key to modern tech. They help power many everyday devices. You’ll find them in magnets, batteries, emission systems, and screens. These parts run motors, wind turbines, and displays. Neodymium, lanthanum, praseodymium, and europium are the most used. They make tech stronger, brighter, and more efficient.

Can rare earths be recycled?
Yes, but recycling rates are still low. The process is hard and costly. That makes it less common. Still, demand is rising fast. Global tensions are also growing. Because of this, more focus is now on recycling rare earths from old electronics and industrial waste.

Why is this difference important for the energy transition?
Knowing the difference helps. It lets people make smart choices. Policymakers, businesses, and consumers all benefit. It guides how we find and use resources. It supports long-term thinking. It helps with clean innovation. If we know what’s critical, we can protect supply chains. We can also invest in recycling and safe alternatives.

Are we running out of minerals or rare earths?
Not exactly. The problem isn’t how much we have. It’s how easy it is to get. Many of these materials are found in large amounts. But they are stuck in a few countries. That makes global supply chains weak and risky.