Elazac Process: Revolutionizing Terbium Recovery in Australia Amid China’s Export Curbs

China’s recent export restrictions on rare earth elements (REEs), including terbium, have sent shockwaves through global industries reliant on these critical materials. With terbium prices surging by 32% since January 2024, industries are scrambling for alternative supply chains. Amidst this turbulence, a groundbreaking Australian technology, the Elazac process, is emerging as a potential game-changer for terbium recovery, promising to revolutionize the rare earths landscape and enhance supply chain security.

The Terbium Imperative: Why This Rare Earth Matters

Terbium is a silvery-white metal belonging to the lanthanide series of REEs. While not as widely known as some of its counterparts, terbium plays a crucial role in various high-tech applications:

Permanent Magnets: Terbium is added to neodymium-iron-boron (NdFeB) magnets, the strongest type of permanent magnet, to improve their performance at high temperatures. These magnets are essential in electric vehicles (EVs), wind turbines, and other clean energy technologies.
Lighting: Terbium is used in fluorescent lamps and energy-efficient lighting to produce a green light.
Electronics: Terbium compounds are used in magneto-optical recording, allowing for high-density data storage.
Defense: Terbium is a component in naval sonar systems and precision-guided munitions, making it vital for defense applications.

The increasing demand for these technologies, particularly EVs and wind turbines, is driving up the demand for terbium. According to the International Energy Agency, the demand for magnet REEs nearly doubled between 2015 and 2023.

China’s Export Curbs: A Wake-Up Call

China has historically dominated the REE market, accounting for a significant portion of global production and processing. However, in recent years, China has implemented export restrictions on certain REEs, including terbium. These restrictions, often citing national security or environmental concerns, have disrupted global supply chains and raised concerns about over-reliance on a single source.

In April 2025, China’s Ministry of Commerce imposed export controls on seven medium and heavy rare earths: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. This measure requires companies to secure special export licenses to ship these materials, potentially leading to delays and reduced supply.

These export restrictions have several implications:

Price Volatility: Terbium prices have already spiked due to supply concerns, and further restrictions could exacerbate this volatility.
Supply Chain Vulnerabilities: Companies relying on Chinese terbium face potential disruptions, impacting their production and profitability.
Geopolitical Tensions: The restrictions have fueled trade tensions and prompted countries to seek alternative REE sources.

The Elazac Process: An Australian Solution

Amidst these challenges, the Elazac process, developed in Western Australia, offers a promising solution for diversifying terbium supply and reducing reliance on China.

Developed by the Morgan family over 15 years with an investment of $150 million, the Elazac process is a novel extraction method designed to recover precious and rare earth metals from polymetallic ores and mining tailings. Unlike conventional methods that struggle with complex ores and fine particles, Elazac boasts high recovery rates and cost-effectiveness.

How the Elazac Process Works:

The Elazac process is a multi-stage method involving:

Acid Wash: An initial acid wash removes contaminants from the ore, preparing it for further processing.
Smelting and Oxidation: A smelting and oxidation sequence reduces and oxidizes the metal.
Proprietary Extraction: The core of the Elazac process involves a proprietary technique to extract the desired metals, including terbium.

Advantages of the Elazac Process:

High Recovery Rates: Pilot-scale tests have demonstrated high terbium recovery rates, exceeding industry benchmarks.
Cost-Effectiveness: The process slashes costs compared to traditional methods, making it economically viable for extracting terbium from previously uneconomical sources.
Versatility: The Elazac process can extract various metals, including gold, platinum group metals (PGMs), and other REEs, from the same ore samples.
Environmental Benefits: The process is designed to be more environmentally sustainable than conventional methods.

Australia’s Rare Earths Ambitions

Australia holds at least 4% of the world’s rare earth element reserves, positioning it well for market growth. The Australian government recognizes the strategic importance of REEs and is actively supporting the development of a domestic rare earths industry.

Several initiatives are underway to boost Australia’s REE capabilities:

Lynas Rare Earths Processing Plant: The Lynas plant in Kalgoorlie is the first rare earths processing facility in Australia and the largest outside of China.
Arafura Resources Nolans Project: This project will be a combined rare earths mine and refinery, pioneering rare earth separation technology in Australia.
Australian Critical Minerals Research and Development Hub: This hub brings together expertise from leading science agencies to accelerate the discovery, extraction, and processing of REEs.

Overcoming Challenges and Seizing Opportunities

While the Elazac process and Australia’s broader REE ambitions hold great promise, several challenges must be addressed:

Scaling Up: The Elazac process is currently in the pilot stage, and further validation is needed before full-scale deployment.
Refining Capacity: Australia needs to develop domestic refining capabilities to process terbium concentrates into high-purity products.
Regulatory Hurdles: Regulatory, environmental, and stakeholder approvals can delay project development.
Competition: Australia faces competition from other countries seeking to develop their REE industries.

To overcome these challenges and seize the opportunities, Australia needs:

Government Support: Government funding and streamlined regulations can accelerate the development of REE projects.
Investment: Attracting investment in mining, processing, and refining is crucial for building a robust REE industry.
Collaboration: Collaboration between industry, research institutions, and government agencies can foster innovation and knowledge sharing.

The Road Ahead

The Elazac process represents a significant breakthrough in terbium recovery, offering a cost-effective and environmentally sustainable alternative to traditional methods. As China’s export restrictions continue to impact global supply chains, Australia is well-positioned to become a major player in the rare earths market, providing a secure and reliable source of terbium for industries worldwide.

The successful commercialization of the Elazac process could not only revolutionize terbium recovery but also create new jobs, boost economic growth, and enhance Australia’s strategic importance in the global technology landscape. The journey ahead may present challenges, but the potential rewards are immense.