A Hidden Breakthrough Reveals Metals Tech Companies' Urgent Need

Rare earth elements (REE) are a group of 17 metallic elements that play a critical role in modern technology and industry. Their importance is growing rapidly, driving a surge in global demand for these essential materials. In 2024, worldwide production of REEs reached 390,000 metric tons — nearly triple the amount recorded in 2017. China remains the dominant player in this market, producing 69% of the total REE output in 2024. However, a recent discovery by Canadian company Tsodilo Resources Limited could introduce a new source of these valuable minerals: Botswana.

This development is significant because many technologies rely on rare earth elements. These include wind turbines, telecommunication systems, defense equipment, and high-tech consumer products. For instance, rare earth magnets are crucial components in electric vehicles. The Gcwihaba Metals Project, where the discovery was made, has identified high-grade mineralization at two exploration targets named C26 and C27. The deposit lies between 20 and 50 meters below the surface and is part of a skarn system — a type of metamorphic rock formed by hot, chemically active fluids like magma.

According to company data, the deposit contains all 15 REEs designated as critical by the U.S. Geological Survey, along with more common metals such as copper, cobalt, nickel, and silver. Although the project is still in the exploration phase, further drilling is planned to assess its full potential.

Despite their name, rare earth elements are not particularly rare in terms of overall abundance. For example, cerium — used in catalytic converters — is the 25th most abundant element on Earth. However, what makes them valuable is the difficulty in finding them in concentrations that make mining economically viable. The initial findings from the Gcwihaba sites suggest that this is one of those rare instances where such concentrations exist.

Some rare earths, like neodymium and praseodymium, are essential for manufacturing high-strength permanent magnets. These magnets are used in a wide range of applications, including electric motors, wind turbines, MRI scanners, and even audio speakers. Neodymium drivers, for instance, are found in some of the best Bluetooth speakers available today.

Other elements, such as dysprosium and terbium, are added to improve heat resistance in magnets. A typical neodymium-iron-boron magnet can function effectively up to 176 degrees Fahrenheit. By adding a small amount of dysprosium, this threshold can be raised to 392 degrees Fahrenheit. Terbium also helps in this regard and is vital in semiconductor production.

These examples highlight the critical role of rare earth elements in modern technology. According to a report by Bloomberg Intelligence, despite an increase in REE production, supply is expected to struggle to meet rising demand, which is projected to grow by about 7% annually until 2030. This growing gap, combined with the heavy reliance on a single country for most of the world's REEs, has increased interest in new sources like the Gcwihaba project.

While the discovery is promising, the Gcwihaba project is still in the early stages of exploration. Tsodilo Resources has outlined a conceptual exploration target based on drilling at the C26 and C27 zones, but no compliant mineral resource estimate has been published yet. Additional drilling is needed to determine the project’s size, grade, and economic viability.

Even if further studies confirm the presence of a viable REE resource, it will likely take years before Botswanan dysprosium or other rare earths become available on the global market. Several factors, such as environmental assessments, permitting, infrastructure development, and financing, add time and complexity to the process. Additionally, processing these minerals presents another challenge. While China produces the majority of the world’s REEs, it also handles about 90% of the separation and processing.

However, Botswana’s reputation as a mining-friendly country could work in the project’s favor. The country already has a thriving diamond mining industry, making it a potential hub for diversification. While the discovery may not immediately change the global REE landscape, it represents a new opportunity at a time when governments and technology companies are seeking to reduce supply chain risks and mitigate the potential impact of over-reliance on a single source.

The future of rare earth elements is uncertain, but discoveries like the one at Gcwihaba offer hope for a more balanced and resilient global supply chain.

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