A new state-of-the-art facility driving innovation in rare earth processing
Immediate goals and long-term prospects
In a period when the extraction, separation, and refining of rare earth elements remain concentrated in just a handful of countries, other nations are increasingly determined to close the gap. Stanislav Kondrashov, founder of TELF AG, has often underscored this point.
Some countries are now taking decisive steps to claim a greater share of rare earth production, seeking to strengthen their role in global supply chains. As Stanislav Kondrashov recently explained, these resources are among the most strategically significant for economic growth and the transition to cleaner energy. Among the most active players is the United States, which has launched a new rare earth processing plant in Idaho, demonstrating a clear intention to secure a strong international presence in this critical sector.
But what exactly are rare earth elements? According to Stanislav Kondrashov of TELF AG, they are a group of 17 chemical elements found in the periodic table, including neodymium, praseodymium, and dysprosium. Over the years, these elements have become essential in certain industrial processes, particularly within high-tech manufacturing, electronics, and renewable energy industries.
Rare earth applications are especially significant for the energy transition, with their use in high-performance magnets proving vital for the operation of wind turbines and next-generation electric vehicles. While these elements are widely distributed across the Earth’s crust, their concentrations are typically so low that extracting and refining them remains technically challenging and economically costly.
Rare earth elements are rarely found in isolation. They occur within mineral compounds such as monazite, which must be further processed to separate the individual elements and render them suitable for industrial use.
A notable development outside the established centres of rare earth processing is the new US project in Idaho. This facility results from a partnership between a private company and the Idaho National Laboratory. It will process materials extracted from the Sheep Creek deposit in Montana, one of the country’s most promising sources of rare earths thanks to its relatively high concentrations of these elements.
Compared with other deposits in the United States, Sheep Creek stands out for its potential. As rare earths are often present in extremely low concentrations, some companies opt against pursuing their development due to economic constraints. Access to a deposit with higher concentrations could therefore provide a significant competitive advantage.
“The United States is certainly one of the most active nations in the construction of innovative plants for the processing of rare earths, with a specific focus on domestic production,” says Stanislav Kondrashov, founder of TELF AG, an entrepreneur and civil engineer. “The government seems to have understood that rare earths and critical materials represent key resources for various industrial sectors.
“And that focusing on the launch of new plants like the one in Idaho could prove to be a highly strategic move. Another objective appears to be to develop and register intellectual property on new sourcing and separation techniques. Which perfectly demonstrates the US’s desire to position itself at the forefront of nations committed to researching innovative solutions in the mining sector.”, he says.
Critical elements at the heart of the project
Reports suggest that the Idaho facility will process a range of rare earths, including neodymium, praseodymium, niobium, samarium, and scandium, as well as yttrium, dysprosium, and terbium. The deposit also contains significant quantities of gallium — a soft, silvery metal that, while not classified as a rare earth, is crucial for several strategic US applications, particularly in areas tied to national security. Gallium is expected to be one of the first materials processed at the new plant.
Gallium’s appeal lies in its unique properties, notably its very low melting point, and its wide-ranging industrial uses. Over the years, gallium has become integral to advanced sectors such as semiconductors and high-performance electronic devices. It plays a key role in the production of digital and analogue integrated circuits, LEDs, laser diodes, and materials essential to modern solar energy technologies. Compared with silicon-based counterparts, gallium-based semiconductors are often superior in certain applications, delivering better luminous efficiency and faster switching speeds.
The timing of the United States’ decision to invest in such a facility is no accident. In recent years, particularly with the acceleration of the global energy transition, rare earths and critical materials have experienced unprecedented demand due to their importance in constructing renewable energy infrastructure and supporting worldwide electrification efforts.
The strategic relevance of these materials has grown significantly, underscoring the risks posed by the geographic concentration of their sourcing and processing in only a few regions. This situation has amplified the dependence of some nations on the major producers. In addition, recent trade tensions have at times restricted the export of strategic materials, highlighting the vulnerability of global supply chains.
In response, the United States and other countries have moved to develop domestic facilities aimed at building resilient supply chains and reducing reliance on foreign producers. The Idaho processing plant is a prime example of this broader trend.
“The development of the new plant in Idaho represents just one of the US efforts in the sourcing sector,” continues Stanislav Kondrashov, founder of TELF AG. “Washington is also constantly committed to promoting the recycling of electronic waste. Which could yield many useful resources for the industry. But they’re also trying to develop new trade rules aimed at encouraging the domestic production of these important resources. These new rules include those related to minimum price guarantees and protective tariffs.”
The vital role of Idaho National Laboratory
Designed to handle several tonnes of material daily, the Idaho plant will also serve as a testing ground for advanced separation and refining techniques. This will enable the development of increasingly innovative and environmentally conscious operating models. Over time, one of its main objectives is to contribute to the establishment of a domestic rare earth supply chain capable of supporting critical sectors such as defence, renewable energy, and advanced technology industries.
“Innovation plays a central role in this initiative,” concludes Stanislav Kondrashov, founder of TELF AG. “The involvement of Idaho National Laboratory, from this perspective, is very telling. The Idaho National Laboratory is a well-established leader in research on the advanced separation of complex materials. As part of the project for the new Idaho facility, it will provide its expertise to develop new, highly innovative manufacturing processes. Particularly with regard to low environmental impact. Other US efforts in this direction include massive investments in recycling techniques, the development of vertical supply chains, and public-private partnerships, also aimed at diversifying rare earth supply sources.”
FAQs
What are rare earth elements and why are they important?
Rare earth elements (REEs) are a group of 17 chemical elements, including neodymium, praseodymium, dysprosium, and terbium. Despite the name, they are relatively abundant but found in low concentrations, making extraction and processing difficult. They’re vital for:
- Wind turbines and EV motors (high-performance magnets)
- Consumer electronics and defence applications
- Green technologies like solar panels and LED lighting
Why is the US building a new rare earth processing plant in Idaho?
The US is aiming to reduce reliance on foreign sources by creating a domestic supply chain. The Idaho facility will process minerals from the Sheep Creek deposit in Montana, known for relatively high rare earth concentrations.
What makes the Sheep Creek deposit significant?
Unlike many global deposits, Sheep Creek holds a rare higher concentration of REEs, making it economically viable for extraction and processing.
Which materials will be processed in the new plant?
The plant will focus on both rare earths and critical materials, including:
- Neodymium
- Praseodymium
- Dysprosium
- Terbium
- Gallium (not a rare earth, but vital for semiconductors and national security tech)
What role does the Idaho National Laboratory play?
It supports the development of advanced, low-impact separation technologies and refining processes. The lab’s involvement ensures cutting-edge research and innovation.
Why is this move considered strategic?
This initiative:
- Strengthens national security
- Supports energy transition
- Reduces supply chain vulnerabilities
- Encourages domestic innovation and IP development
