Beyond EV Vehicles: Rare Earth Elements Crucial for Other Industries
The Mineral Industry Agency (BIM) has highlighted the importance of mastering Rare Earth Element (REE) technology, which is required not only for electric vehicles but also for the defence industry and clean energy technology, in line with increasing global demand.
Yogi Wibisono Budhi, BIM Deputy for Research and Technology Development, explained that the utilisation of REEs spans various broad industries beyond the automotive ecosystem. He noted that the presence of 17 REE elements is a crucial component in manufacturing strategic parts, ranging from permanent magnets to metal alloys.
“Rare earth elements carry very strategic interests for the future. This applies to industries involved in clean energy, the defence industry, national independence, various geopolitical interests, and efforts to increase added value,” he explained during an event for the Indonesian Mining Experts Association (Perhapi) at JIExpo.
Based on data from the International Energy Agency (IEA) cited by the agency, the mineral requirements for onshore wind power plants have surged ninefold compared to gas-based power systems.
Meanwhile, the mineral requirements for electric vehicle production have increased sixfold. Elements such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), terbium (Tb), and yttrium (Y) are primary components in permanent magnets for wind turbines and electric motors, while scandium (Sc) is used for high-value aluminium alloys.
“Moving forward, the shift towards resources related to minerals that can be converted into rare earth elements will become a very important strength to consider,” he said.
The agency intends to accelerate research and development of strategic mineral processing technologies to be processed domestically. Independent domestic processing is crucial, given that the scheme of exporting raw materials only to re-import them as finished products has the potential to cause national losses.
“Global competition has shifted from merely possessing large reserves to how supply chains can be established,” he noted.
“Therefore, the role of BIM here is to bridge that gap. We want to connect the research results from universities and research institutions, such as BRIN, with the real needs of the industry,” he concluded.