China is investing in developing solid-state hydrogen storage as one of the key technological pathways to overcome the bottleneck for hydrogen energy storage and transportation.
Over the past several decades, China has emerged as the world’s dominant force in the Rare Earth Elements (REE) sector. These metals have become one of the most crucial and sought-after resources in the modern economy. Due to their unique magnetic, luminescent, and electro-chemical properties, this group of 17 elements have become indispensable in a broad range of industry settings, from electric vehicles and wind turbines to oil refinery, medical imaging, and advanced military systems.
Solid hydrogen storage, based on rare earth technology, offers several environmental benefits, including a lower ecological footprint compared to traditional storage methods like compressed gas or liquid hydrogen. By leveraging the unique properties of rare earth alloys for solid-state hydrogen storage we could significantly enhance energy efficiency and reduce emissions. In particular, Chinese scientists have shown that rare earth-based hydrogen alloys when combined with magnesium-based materials complement each other in terms of power density, cost, and safety due to their material property differences.
1. Environmental Benefits of Solid Hydrogen Storage & Rare Earth Alloys
1.1 Rare Earth Alloys
Strength and Durability
Rare earth alloys enhance the strength and durability of metals, reducing the need for frequent replacements. This leads to less waste and lower resource consumption over time.
Corrosion Resistance
These alloys improve corrosion resistance in metals, which is crucial in environments exposed to moisture or salt. This property extends the lifespan of components, minimizing maintenance and disposal issues.
Energy Efficiency
In energy applications, rare earth alloys improve the efficiency of systems like wind turbines and electric vehicles. Enhanced performance means less energy is required for operation, contributing to lower emissions.
1.2 Solid Hydrogen Storage
High Energy Density
Solid-state hydrogen storage technologies using rare earth materials achieve high volumetric hydrogen storage density. This efficiency allows for more effective use of land space in energy systems, reducing the overall environmental footprint.
Reduced Emissions
By facilitating the use of hydrogen as a clean energy source, solid hydrogen storage supports the transition away from fossil fuels.
Hydrogen can be produced from renewable sources, leading to lower greenhouse gas emissions.
Sustainable Energy Transition
The integration of solid hydrogen storage in energy systems supports the broader goal of decarbonization. It enables the storage of renewable energy, making it available when needed and reducing reliance on non-renewable sources.
2. China’s World Lead in Rare Earth Elements
Today China accounts for the majority of global REE production and processing, and is the leading exporter of critical REE-based products such as permanent magnets. The Guangzhou Institute of Geochemistry of the China Academy of Sciences estimates China’s reserves as around around 50 million metric tons in rare earth oxide (REO) equivalent, accounting for around 48% percent of the world’s total reserves.
Brazil, a fellow leading BRICS country, is home to the world’s second-largest REE reserves estimated at 21 million metric tons, accounting for around 23.3% of the world’s reserves. Between them, these two BRICS countries hold over 71% of the world reserves.
Through sustained investment across the entire value chain—from mining and refining to downstream manufacturing—China has built a comprehensive and highly integrated world leading REE industry.
China maintains strict control over the mining and production of REEs, production of which is governed by the Rare Earth Management Regulations, which came into effect in October 2024. At the same time China released the Regulations on Export Control of Dual-Use Items, under which the government can control the export of goods, technologies, and services with dual civil and military applications. In July 2025 China released the Interim Measures for the Total Quantity Control and Management of Rare Earth Mining, Smelting, and Separation. The new measures require rare earth producers to report their output on a monthly basis status against their assigned annual total quantity targets, and to have in place a system to track the flow of rare earth products. This data must be reported to the central government’s traceability platform each month.
Sources:
China Briefing, Aug 29, 2025. ‘Rare Earth Elements: Understanding China’s Dominance in Global Supply Chains’. https://www.china-briefing.com/news/chinas-rare-earth-elements-dominance-in-global-supply-chains/
Discovery Alert, July 29, 2025. ‘Guide to All 17 Rare Earth Elements’. https://discoveryalert.com.au/news/rare-earth-elements-importance-strategic-applications-2025/
Shanghai Metal Market, Apr 27, 2025. ‘Rare Earth & Magnesium—Solid-State Hydrogen Storage Technologies’. https://www.metal.com/en/newscontent/103300412
China Environment News 