Evaluating rare-earth constraints on wind power development under China's carbon-neutral target

Abstract

China proposed a target to achieve carbon neutrality before 2060. Wind power is crucial for mitigating climate change and achieving carbon neutrality. However, its development depends on the potential constraints of rare-earth elements. Therefore, first projecting the rare-earth demand for wind power equipment in the context of achieving carbon neutrality and identifying potential obstacles are necessary. However, the carbon-neutral pathway for China's power sector is unclear, let alone the corresponding rare-earth demand. Consequently, this study explores a potential cost-effective carbon-neutral pathway for China's power sector and quantifies the demand for rare-earth elements used for producing wind power equipment under different pathways, by integrating dynamic material flow analysis and a national energy technology model. The results showed that the rare-earth supply may be inadequate for wind power development in terms of achieving carbon neutrality in China, especially for dysprosium and terbium. To neutralise the carbon emissions of China's power sector, the cumulative rare-earth demand during 2021–2060 would be 222–434 kt, of which at most 1/3 could potentially be obtained by circular usage from end-of-life wind turbines. However, the existing low secondary recovery rate of rare-earth elements makes the available circular amounts very small. Shifting to a wind power market dominated by direct-drive turbines may increase the cumulative rare-earth demand by up to 34 %. Without material intensity reduction for the wind power technologies, an additional 38 % demand for rare-earth elements will occur, exacerbating the risk of shortage.