Rare-earth elements are not rare.
"Despite their name, rare-earth elements are – with the exception of the radioactive promethium – relatively plentiful in Earth's crust, with cerium being the 25th most abundant element at 68 parts per million, or as abundant as copper."
https://en.wikipedia.org/wiki/Rare-earth_element
And, further, many batteries and renewable power sources don't even use any Rare-earths.
As to your question, there's lots going on in storage, it wouldn't suprise me if 1/5th of the stories on a renewable tech blog were about progress and breakthroughts in various types of storage.
https://www.washingtonpost.com/graphics/business/batteries/c...
I can't help but wonder if we still have a ways to go. Or is this anti-renewable propaganda?
I note the actual headline has an iPhone icon and the text "This is where mobile technology begins".
A similar common bait-and-switch is to talk about how EVs are bad if you generate your electricity from coal. The mental gymnastics necessary to take that data and decide "Maybe we shouldn't use EVs" rather than "Maybe we shouldn't use coal" is a wonder to behold.
So, as long as you're saying, let's do the cleanest of all the options, that's cool. Because the cleanest answer is solar, wind, EVs and storage (including lithium ion) amongst other techs and any honest approach to doing the most efficient, least destructive thing is only going to help speed them on their way.
If you're bringing it up for the same reason people bring up birds being killed by wind power, or coal powered EVs generating pollution, or how global warming isn't even a real thing etc. then yeah, it's fairly well-funded propaganda you're spreading around.
Agree that recycling is probably going to be important (as it is already with other metals).
Maybe you don't hear as much but progress is ongoing. I thought the recent stuff on rechargeable polymer alkaline batteries sounded promising https://www.wired.com/story/bill-joy-finds-the-jesus-battery... Potentially <1/2 the price of Li Ion and without a fire / explosion risk that could make them good for bulk gird storage. Already batteries are starting to compete with gas peaker plants https://www.greentechmedia.com/articles/read/ge-digital-gas-...
http://batteries.parametrek.com/index.html?size=18650&wh_kg=...
The best are still only 276 Wh/kg, no where near the 350 Wh/kg the graph would predict.
Lead acid car batteries are already collected for recycling at very high rates in most areas, so there's no reason why li-ion car batteries wouldn't be collected and recycled as well.
https://www.washingtonpost.com/graphics/business/batteries/c...
Newer forms of Lithium Ion batteries may avoid the Cobalt, but Cobalt-based Lithium Ion is still the most popular IIRC. Cobalt Mining is dangerous, toxic, and centralized in politically unstable regions (Child Labor, poor conditions, etc. etc.)
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Lithium itself is located in many locations around the world. IIRC, there's a bit Lithium Mine in Nevada.