Rare earth elements are amongst the most critical materials, they are crucial for a number of energy related technologies relying on the superior catalytic, optical or magnetic properties that can be achieved in their compounds. As catalysts they find application in fluidic catalytic cracking (FCC) catalysis, one of the most important processes in petrochemistry where they are used to convert the high-molecular weight hydrocarbon fraction of crude oil into more useful lower-weight hydrocarbons. Rare earth based phosphors are the key part for energy conversion in compact fluorescent lamps (CFLs) and light emitting diodes (LEDs) which are currently the most important energy efficient lighting devices. As phosphors rare earth based materials find also application in scintillators for radiation detection (as used by Homeland Security) or for medical imaging. As security makers they can be found in passports and banknotes. Currently an increased consumer demand for rare earth materials arises from the increased use of cell phones and tablets. The exceptional properties of rare earth elements are particularly used in alloys for permanent magnets. The properties of SmCo5 and Nd2Fe14B are unsuperseded. Because of their high field strength Nd2Fe14B magnets are used in hard drives, motors for hybrid cars or wind turbines. SmCo5 is less used as it not only has a weaker field strength, but is also more expensive because it contains two critical elements, samarium and cobalt. However, as the Curie temperature of SmCo5 is higher than that of Nd2Fe14B is used in applications where high field strengths at high temperatures are needed. However, the stable economic supply of rare earth elements is not guaranteed and, thus, the pproduction and use of rare earth compounds constitute an important strategic and dynamic segment of the electronic, chemical and energy industries. The presentation will discuss the importance and criticality of rare earth elements and will give insights into how ionic liquids can provide technology solutions for rare earth recycling, separation and production, most importantly, the electrodeposition from ionic liquids as an alternate, greener process to the currently used high temperature process.