By ISABELLA CASTAÑEDA RODRÍGUEZ | EGADE BUSINESS SCHOOL
Rare earths, essential for manufacturing technological devices and electric motors, have become the most coveted minerals of the 21st century due to their strategic role in the energy transition and the digital economy.
In this episode of Territorio Negocios, hosted by Pablo Necoechea, Regional Director of EGADE Business School in Mexico City and Querétaro, Edgardo Cayón Fallon, Professor in the Department of Finance and Business Economics at EGADE Business School, analyzed their impact from different perspectives.
The expert highlighted the essential role of neodymium in producing lightweight magnets used in drones, wind turbines, and electric motors. He also stated that “if China were to cut supply chains, the impact on the global economy would be total.”
On the geopolitical front, the academic pointed out that China has managed to turn rare earths into a strategic weapon by integrating them into its economy since the opening of its economy, while maintaining strong state control over key sectors.
Meanwhile, the United States is trying to regain ground. “The Pentagon has just given a grant to Mountain Pass Materials to try to restart neodymium production in California. But, in the best-case scenario, it would take about ten years,” said Cayón.
Latin America also appears on the map of new global mining. “The lithium triangle between Brazil, Chile, and Bolivia has invaluable strategic potential,” he noted. However, he warned that exploitation in environmentally sensitive areas represents a dilemma between development and sustainability.
Cayón concluded that technological innovation implies contradictions: “Every type of manufacturing has an environmental cost. We must analyze what environmental cost we are willing to pay.”
This and more episodes of Territorio Negocios are available on Spotify, Apple Podcasts, Amazon Music, and YouTube.
