A study by Area Science Park and the University of Milano-Bicocca, published in Resources Policy, examines innovation trends in rare earth element recycling.
The growing demand for Rare Earths in the green transition
Digitalization and decarbonization are key strategies for governments aiming to steer economic systems toward sustainability. However, these green and digital technologies rely on an increasing variety of materials, driving higher demand for mineral resources. Among the most critical are rare earth elements (REEs) – a group of 17 chemical elements essential for industries such as electronics, electric vehicles, wind turbines, and hydrogen production. REEs have gained particular attention in recent weeks, even being cited as a factor in geopolitical tensions like the war in Ukraine.
Who dominates the Rare Earth market?
Europe, the United States, Japan, South Korea, and Australia have classified REEs as critical minerals due to their strategic economic importance and the supply risks posed by China’s near-monopoly on extraction and processing.
China is also the dominant force in rare earth recycling patents, significantly outpacing other countries in patent applications. This is a key finding of the study Innovation in Rare Earths Recycling: A Quantitative and Qualitative Analysis of Patent Data, which provides an in-depth examination of technological advancements in REE recycling through a comprehensive patent analysis.
Circular economy strategies, such as REE recycling, offer an alternative to primary extraction by reducing supply chain risks, geopolitical dependencies, and environmental impacts. However, achieving economically viable and technically efficient recycling requires continuous innovation.
Italian research sheds light on the Global REE Market
The study, conducted by Riccardo Priore and Marinella Favot from Area Science Park, alongside Marco Compagnoni from the University of Milano-Bicocca, and published in Resources Policy, highlights a clear divide in innovation. Chinese universities lead in REE recycling research and technological development, while the U.S. and Japan dominate in high-impact patents and cutting-edge innovations. Europe lags behind, with fewer patents and lower technological significance.
“This work,” explains Riccardo Priore of the Patlib Center at Area Science Park, “provides an innovative approach to supporting academic research through statistical analysis of patent documents. Understanding innovation dynamics in rare earth recycling is a crucial starting point for developing more effective strategies in the sector, with significant implications for the strategic autonomy of importing countries and the future of the global circular economy.”
Rare Earth Recycling: how the study was conducted
The research followed a two-step methodology to identify REE recycling patents. The first step involved using the OECD ENV-TECH classification system, developed by the Organisation for Economic Co-operation and Development (OECD), to categorize and organize patents related to environmental and green technologies. This classification system helps identify technologies with a positive environmental impact, including waste recycling systems and solar energy solutions. Technologies are grouped based on function or application field.
The second step involved filtering relevant patents by identifying keywords related to REEs in patent titles and abstracts. This approach allowed researchers to pinpoint innovation trends in rare earth recycling technologies.
How can Europe close the innovation gap?
To bridge the gap with leading nations, Europe must increase support for innovation through public investments, corporate incentives, and international collaborations. Most importantly, enhancing recycling capabilities will be critical in reducing reliance on imports and mitigating the environmental impact of extraction. The findings of the Italian study suggest that Western countries need to intensify efforts in REE recycling by promoting high-quality innovations and investing in the transition to a more sustainable economy.
