4 mins read
Published Oct 21, 2025
Rare Earth Elements
Carbon Central for the Rare Earth Elements (REE) Industry
Rare earth elements (REEs) are essential for clean energy, digital infrastructure, and defence technologies, with only a few substitutes for their unique properties. Rising demand and concentrated supply have made access to REEs not only an economic issue but also a geopolitical one, as control over resource deposits and processing capacities can shape global trade flows and strategic partnerships.
This challenge is then also compounded by opaque, fragmented supply chains. Mining and refining of REEs are resource and emission-intensive, often linked to significant environmental and social impacts, yet traceability remains limited. And for companies trying to employ sustainable mining and processing practices, disaggregated supply chains obscure accountability, making it difficult to verify sustainability, measure carbon intensity, or ensure ethical sourcing — all of which are critical for building resilient and responsible REE supply systems for the advancement into the future.
This growing strategic importance is reflected in the recent U.S.–Australia framework on mining and processing of critical minerals and rare earths, which aims to strengthen secure, transparent, and sustainable supply chains between the two nations. With more than $3 billion in joint investment planned over the next six months across projects estimated to hold $53 billion in recoverable resources, such initiatives underscore the need for robust traceability systems that can verify material provenance and sustainability performance across borders.
Key Challenges in Rare Earth Element (REE) Supply Chains and Sustainability Reporting
Environmental Impact and Resource Intensity of Rare Earth Element Mining
Rare earth elements (REEs) are indispensable for the clean energy transition, yet their extraction and processing come with significant environmental costs. Conventional open-pit mining consumes large amounts of energy, affects local ecosystems, and may generate hazardous by-products that contribute to soil degradation, vegetation loss, and the pollution of surface and groundwater resources. Furthermore, REE reserves are finite, scarcely distributed and localised only in certain countries, raising concerns about long-term availability. Without clear and standardised sustainability criteria, the industry risks undermining the very climate and circular economy goals that REEs are meant to advance.Lack of Sustainability Standards and Certification in the Rare Earth Industry
While many other sectors have developed frameworks for certifying environmental and social performance, the REE industry lacks a universally accepted standard for sustainability tracking and reporting. In many regions, there is also no consistent way to assess whether REEs are sourced legally, extracted under fair working conditions, or processed with minimised ecological impact. This absence of certification schemes prevents stakeholders from making verifiable sustainability claims and leaves consumers, manufacturers, and regulators without a reliable basis for comparison. Establishing industry-wide sustainability criteria is therefore critical to align the sector with global environmental and ethical expectations.Opaque and Fragmented Supply Chains
Transparency remains one of the most pressing issues for REE supply chains. Documentation of supply chain activities is often incomplete, inconsistent, or unavailable, making it difficult to trace REEs from mine to final product. Stakeholders frequently operate with different tracking systems, with often manual data formats, and reporting practices, hindering efforts to build a coherent picture of the value chain. In addition, privacy concerns and competitive sensitivities discourage companies from sharing critical information. Additionally, the global nature of REE end-use further complicates traceability, as varying legal frameworks and regulatory requirements create additional barriers to standardisation. These conditions leave the industry exposed to supply disruptions, reputational risks, and challenges in achieving sustainability targets.
How Carbon Central Improves Rare Earth Traceability, Sustainability, and Compliance
NoviqTech’s Carbon Central addresses these challenges as an end-to-end traceability and sustainability provenance platform that uses blockchain technology and AI-powered insights to connect all operators along the REE supply chains for transparent tracking of the REE extraction through to processing and end-use, while mapping environmental impact and resource use.
As governments such as the U.S. and Australia strengthen their cooperation to build secure and transparent critical mineral supply chains, solutions like Carbon Central become vital. They provide the digital infrastructure needed to demonstrate compliance, verify sourcing integrity, and enable cross-border traceability aligned with emerging policy frameworks.
Enabling End-to-End Transparency
Carbon Central leverages blockchain technology to create a secure, tamper-proof record of REE flows from extraction to end-use. By standardising data formats and integrating inputs from multiple stakeholders, the platform ensures that every step in the supply chain can be traced with confidence. This transparency helps overcome the fragmentation and inconsistent documentation that currently hinder REE traceability, enabling stakeholders to build a verifiable chain of custody.
Embedding Sustainability Metrics and Certification
The platform incorporates a digital twin technology to map emissions data, resource-use intensity, and socio-environmental criteria along with process flows. This allows companies to quantify the environmental intensity of REE production, monitor compliance with voluntary or regulatory sustainability frameworks, and support certification efforts to increase the product value. The platform also supports circular economy initiatives such as Digital Product Passports (DPPs) or Battery Passports to ensure traceability in the final use of REEs.Supporting Compliance and Responsible Sourcing
Carbon Central not only tracks the physical flow of REEs but also connects it to relevant regulatory and market frameworks. This helps companies align with varying regional laws, international sustainability frameworks, and corporate ESG commitments. By offering verifiable data on product or material origin and sustainability performance, the platform empowers businesses to demonstrate responsible sourcing, reduce reputational risks, and strengthen supply chain resilience in the face of REE industry uncertainties.
Future of Rare Earth Element Supply Chains: Traceability, ESG, and Geopolitical Risks
The REE industry across the globe is expected face increasing pressures from geopolitical tensions, trade restrictions, and supply chain uncertainties as the supply dynamics evolve.
At the same time, companies also need to address environmental and emissions challenges, while ensuring transparent and verifiable traceability of materials throughout their operations.
NoviqTech’s Carbon Central addresses these needs as an end-to-end platform, tracking rare earth elements along the entire supply chain. By embedding sustainability metrics, supporting ESG and regulatory compliance, and providing secure, transparent data, Carbon Central helps companies demonstrate responsible sourcing, strengthen supply chain resilience, and provides end-users and customers with verifiable insights for the materials and technologies they use.
