Rare Earths, nanosatellites, and the Space Economy: Europe’s technological challenge

Rare Earths: what they are, why they are essential, and Italy’s role

A quick online search reveals that “rare earths” are at the center of the international debate, with major powers racing to secure deposits.
From renewable energy to military and aerospace applications, from electric vehicle production to fiber optics and the manufacturing of electronic devices like smartphones, REEs (Rare Earth Elements) are foundational to many advanced technologies — both as raw materials and in chip manufacturing processes. As such, they are essential elements for the transition of both the present and future.

Contrary to what their name suggests, rare earths are not actually “rare.” They are relatively common but present two major challenges:

• they are scattered across the globe in low concentrations (Italy, for instance, does not have significant deposits: 16 out of the EU’s 36 critical raw materials have been identified, mainly in Sardinia, Tuscany, and the Alps, but not in quantities sufficient to justify opening new mines at this time), and
• they require very complex refining processes to become usable in the electronics industry.

Extraction and processing are expensive, as the required infrastructure must be built and dismantled quickly, making the process unsustainable in many areas.
This situation has sparked the current global debate.

Rare Earths and nanosatellites: the case of Apogeo Space

As for Apogeo Space, which is building the first European constellation of picosatellites dedicated to global IoT, our nanosatellites use standard market-available chips that include rare earth elements, just like any other advanced electronic component.

Rare earths significantly contribute to the performance of nanosatellites, improving:

• the efficiency of electronic circuits,
• radiation resistance, and
• signal stability.

Materials such as Neodymium and Dysprosium, for example, are used in high-performance magnets found in actuation and orientation systems. Other elements like Lanthanum and Cerium are found in semiconductors or coatings of electronic components.

Although the quantities are minimal, their impact is critical, particularly in RF tracks that must ensure reliable transmissions from 600 kilometers in altitude.

Currently, despite the global situation mentioned earlier, we are not experiencing a real availability crisis: supply times may require a few additional weeks, but operating with relatively small volumes means we are not as exposed as multinational corporations.

Moreover, we work with a network of carefully selected suppliers capable of providing high-quality components with a relatively stable and flexible supply chain, thus minimizing the impact of potential geopolitical tensions.

Miniaturization and advanced materials: the new frontier of the space economy

Beyond the use of rare earths, technological evolution and miniaturization play a crucial role in the development of nanosatellites.

Miniaturization is one of the main drivers of the space revolution, and although we are approaching physical limits, recent advances have made it possible to build satellites that are increasingly lighter, more compact, and more efficient.

This has drastically reduced launch costs and opened the doors to the New Space Economy.
At the same time, the use of advanced materials such as lightweight alloys and high-performance composites allows satellites to withstand extreme space conditions — including thermal fluctuations, radiation, and micro-meteoroids.
The result is more resilient, reliable satellites capable of maintaining high performance throughout their operational lifetime, which for our satellites is estimated at around four years.

Chips, rare earths, and geopolitics: how Europe Is responding to the technological crisis

As mentioned earlier, the chip sector is currently undergoing a radical transformation. All major manufacturing companies are at a standstill, as miniaturization has reached a physical limit: producing even smaller chips has become nearly impossible with today’s technologies.

TSMC, the Taiwanese company, undoubtedly dominates the market, with an estimated 60% share, leading in the production of ultra-small, cutting-edge chips.
Due to rising geopolitical tensions between Taiwan and China, TSMC is investing billions to open new facilities in Europe and the United States — a strategic move to mitigate supply chain risks.

The Dutch company ASML plays a crucial role in this dynamic, being the only company in the world capable of producing the machinery needed to manufacture TSMC’s advanced chips.
This strong interconnection places Europe directly at the heart of this geopolitical game, making it heavily dependent on the sector’s evolution.

Another major issue is the shortage of raw materials, particularly rare earths, which are essential for both chip manufacturing (starting from silicon wafers) and batteries — now dominating the automotive and electric mobility sectors (bikes, scooters, etc.).

In this delicate balance, regions like Tibet and several African countries play a fundamental role.
Unfortunately, in many of these areas, local criminal groups, often in collaboration with corrupt governments, exploit low-cost labor under inhumane conditions to control and extract raw materials.

Europe has taken a stance in the rare earths market and is increasingly investing in highly specialized factories.
These investments are materializing through the establishment of production hubs across various countries, including Italy.
A notable example is STM in Catania, which focuses on producing silicon wafers, crucial for the semiconductor industry.

Space Innovation and european autonomy: the role of Apogeo Space

In this constantly evolving landscape, companies like Apogeo Space demonstrate how innovation can thrive even in complex environments, contributing to strengthening Europe’s technological autonomy in the space sector.

Sources:

1. U.S. Geological Survey (USGS) – Rare Earths Statistics and Information
2. European Commission – Critical Raw Materials
3. International Energy Agency (IEA) – The Role of Critical Minerals in Clean Energy Transitions
4. The Guardian – UN-led panel aims to tackle abuses linked to mining for ‘critical minerals’
5. Nature – Limits of chip miniaturization
6. Society Watch: Across the globe, indigenous rights are being trampled in lithium goldrush – Reuters/Thomson Reuters Foundation (2 Gen 2024). Link: Reuters
7. The US won’t gain a lead in the competition for Africa’s critical minerals without innovation – Atlantic Council (26 Nov 2024). Link: Atlantic Council
8. Semiconductor equipment maker ASML ships second ‘High NA’ EUV machine –
   Reuters (17 Apr 2024). Link: Reuters.
9. TSMC says can make next generation chips without ASML’s new machine –
   Reuters (14 Mag 2024). Link: Reuters
10. ASML – Official site
11. TSMC – Official site