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A 2024 study estimated that rare-earth oxides in potentially accessible U.S. coal ash could be worth about $8.4 billion, using assumed extraction rates and 2020 prices. That is a modeled resource value—not money already earned, a proven reserve, or evidence that the United States can end China’s dominance of rare-earth supply chains.
What the $8.4 billion estimate actually represents
The national study by Scanlon and co-authors combined estimates of coal ash potentially accessible in the United States with rare-earth concentrations reported in earlier literature. It then applied basin-specific assumed extraction rates and 2020 rare-earth-oxide prices to estimate potential value. The result is a model, not a valuation at current prices or a projection of sales or profit. Read the 2024 study.
A University of Texas at Austin account of the work says accessible U.S. coal ash may contain up to 11 million tons of rare earth elements. It describes approximately 1,873 million tons of ash generated from 1985 through 2021—about 70% of the ash produced in that period—as potentially accessible. Those figures describe estimated material in a subset of historical ash, not rare earths already separated or ready to sell. The university’s summary explains the estimate.
Why “accessible” does not mean recoverable
The national estimate assumes extraction of 30% for ash in the Appalachian and Illinois basins and 70% for Powder River Basin ash. These are inputs to the value calculation, not reported commercial recovery results. The estimate therefore does not show that those quantities can be extracted economically at industrial scale.
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What later extraction results say
A 2026 U.S. Geological Survey study examined coal and coal ash in Alabama, Florida, Louisiana, Mississippi and Texas. With the same weak acid used on its coal samples, the study found coal-ash extractability was generally no more than 5%. That result is a warning against treating modeled national recovery assumptions as demonstrated performance; it comes from a separate, geographically limited Gulf Coast study. See the USGS study summary.
The Gulf Coast estimate is not another national valuation
The Gulf Coast study estimated a roughly $1.2 billion value for an ash basket of about 258 million tonnes under an assumed extractability of about 30%. Because the study’s weak-acid tests generally found no more than 5% extractability from ash, the 30% figure is an assumption behind that separate value estimate, not the study’s demonstrated result. Its region, ash quantity and assumptions differ from the national $8.4 billion analysis, so the figures should not be combined or compared as if they measured the same pool of material.
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Could this reduce U.S. dependence on China?
Coal ash could become one potential domestic source of rare-earth material, but the cited studies do not establish how much U.S. demand it could supply or when. Nor do they show that a coal-ash resource would shift the global supply chain. Rare-earth content in ash is only one stage: material must be extracted and processed into separated oxides, and supply chains also involve metals, alloys and finished magnets.
The U.S. Geological Survey’s 2026 summary says China was the leading producer for 20 of 60 critical minerals with reliable estimates, including 14 lanthanides classified as rare earths. That is a bounded measure of China’s production role, not proof that coal ash could displace its influence across the full supply chain. Consult the USGS Mineral Commodity Summaries 2026.
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A 2019 USGS fact sheet reported that China accounted for 70% of global rare-earth production in 2018. That figure is historical context only, not a current market share. The fact sheet identifies the period it covers.
What would have to be true for coal ash to become a useful supply source?
- Reliable recovery: Extractability measured in representative ash would need to translate into repeatable recovery at the scale required, rather than remain an assumption in a resource model.
- Viable economics: Processing costs, product prices and any remediation savings would need to support a workable project. Gulf Coast study authors say co-products or societal benefits would likely be needed for socioeconomic viability.
- Commercial scale: The cited evidence does not establish sustained commercial output, production volumes, unit costs or a timeline for significant supply.
- Supply-chain capacity: Extracted material would still need processing through the stages required to make usable rare-earth products.
What the new extraction technology does—and does not—show
In May 2025, the U.S. Department of Energy’s National Energy Technology Laboratory announced that researchers had developed and patented a process for extracting resources from coal fly ash. NETL research scientist Mengling Stuckman said, “Not only does this invention enable us to meet a critical need for our economy, but it can also incentivize the use of coal ash, thereby transforming today’s waste product into tomorrow’s commodity.” The statement describes the process’s potential; the announcement does not establish commercial production at scale. Read NETL’s announcement.
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