Rare earth elements are the most critical materials you’ve probably never given a second thought. These 17 metallic elements aren’t actually scarce in Earth’s crust, but finding them in mineable concentrations proves surprisingly challenging.
Let me break down what rare earth elements really are. They’re a unique group of metals with distinctive magnetic, luminescent, and electrical properties that modern technology can’t do without. Your smartphone, electric vehicles, wind turbines and military defence systems all depend on these materials. These elements are the foundations of our shift to green energy and digital technologies.
The global distribution of rare earth elements tells a fascinating story. China rules this digital world by controlling about 70% of global production and most processing capabilities. The United States, Australia, and India are scrambling to develop their own supplies. The competition is fierce because these elements power everything from catalytic converters to powerful magnets in electric motors. They’re crucial to current manufacturing and future technological advances.
Australia’s mining operations have grown substantially. The US sees these materials as vital to national security, and new players like Myanmar continue to alter the map of global supply. Nations controlling these critical resources by 2025 will hold tremendous economic and geopolitical influence in our resource-dependent world.
China
Image Source: The Institute for Energy Research
China towers over the global rare earth elements in the digital world. The country doesn’t just control massive reserves – it dominates every part of the supply chain. This represents one of the most complete resource monopolies anyone has seen in the modern world. The impact on technology manufacturing, green energy shifts, and global power dynamics runs deep.
China’s rare earth reserves and production
The numbers paint a clear picture of Chinese dominance. China owns about 36% of the world’s rare earth reserves but produces 70% of global raw materials. Most production comes from the massive Bayan Obo mining district in Inner Mongolia. Additional operations run in Sichuan province and southern regions like Jiangxi, Guangdong, and Fujian.
Chinese rare earth production has changed drastically in the last several years. The country’s share of global production reached over 95% from 2000-2010, creating what seemed like a complete monopoly. Other nations have started developing their resources, but China still produces around 210,000 tonnes each year – nowhere near what any competitor can match.
China’s position stands out not just because of raw production numbers but their smart approach to rare earth development. Many Western nations saw these elements as niche materials. Chinese leadership, especially under Deng Xiaoping, saw their true value decades ago. As Deng said in 1992, “The Middle East has oil; China has rare earths.”
China’s control over the supply chain
China’s power extends beyond mining operations. The country has almost complete control over rare earth processing and refining. Other countries mine rare earth ores but must send materials to China to process them. This creates a bottleneck that gives Beijing extraordinary control.
Rare earth element separation and processing needs advanced technology, deep expertise, and major infrastructure investment. These processes create toxic waste and environmental issues that Western nations don’t want to handle at home. China has built complete processing capabilities, especially in:
- Separation and refining of mixed rare earth concentrates
- Production of rare earth oxides and metals
- Manufacturing of rare earth magnets and other end products
- Research and development of new applications
State-owned enterprises run most of this processing infrastructure in China. China Minmetals Rare Earth Co., Northern Rare Earth Group, and China Southern Rare Earth Group lead the pack. These companies get government support through subsidies, special policies, and alignment with strategic industrial plans.
China’s manufacturing capabilities make its position even stronger. The country makes about 92% of the world’s rare earth magnets – key parts needed in electric vehicles, wind turbines, and countless electronic devices. This control over both raw materials and finished products gives China a huge edge.
China’s export policies and global influence
China has used its rare earth dominance as a powerful geopolitical tool over the last several years. The country’s export rules have shifted from open access to careful resource management.
A key moment happened in 2010 during territorial disputes with Japan. China suddenly cut rare earth export quotas by 40% and stopped shipping to Japanese manufacturers. This move shocked global supply chains. Rare earth prices shot up by 500% and caused worldwide panic about supply security.
China has kept control through various measures:
- Production quotas that limit domestic mining to prevent oversupply
- Export restrictions that favour domestic manufacturers
- Industry consolidation to strengthen state control
- Environmental regulations that shut down illegal mining operations
These policies triggered major international responses. The United States, European Union, and Japan won a World Trade Organisation case against China’s export restrictions in 2012. All the same, China kept effective control by moving restrictions upstream in production.
Trade tensions with the United States have grown recently. China has shown it might use rare earth supply as a weapon against economic pressure. Chinese state media suggested rare earth export restrictions as a possible response to American tariffs and restrictions on Chinese tech companies in 2019.
China’s influence reaches beyond export controls. Chinese companies invest in rare earth mining across Myanmar, Madagascar, and Greenland. This strategy extends China’s control outside its borders.
The effects run deep. Countries developing advanced manufacturing, clean energy infrastructure, or military capabilities depend heavily on Chinese rare earth supplies. This vulnerability shapes international relations, trade policies, and national security strategies worldwide.
United States
Image Source: Precedence Research
The United States has emerged as a determined challenger to China’s rare earth dominance. America once led global production before losing ground in the 1990s. This move from market leader to dependency has sparked renewed efforts to rebuild domestic capabilities that many American policymakers now see as vital to national security.
United States’ rare earth mining capacity
American rare earth mining has seen a remarkable comeback after decades of decline. The revival centres on the Mountain Pass mine in California. This facility, which led world production until the early 2000s, has transformed under its current operator, MP Materials. The mine came back to life in 2018 and now makes up about 15% of global rare earth concentrates.
Mountain Pass pulls out mostly light rare earth elements (LREEs) like neodymium and praseodymium. These elements are vital components for permanent magnets used in electric vehicles and wind turbines. The mine holds more than 20 million tonnes of rare earth ore, making it one of the richest deposits outside China.
The country has several promising projects beyond Mountain Pass. USA Rare Earth develops the Round Top deposit in Texas, which contains 15 of the 17 rare earth elements and other critical minerals. The Bear Lodge project in Wyoming offers another rich source, with estimates showing over 18 million tonnes of rare earth oxide.
American mining faces unique hurdles compared to China or Australia. Strict environmental rules drive up operating costs. The complex permit process can add several years to development times. These challenges, combined with unpredictable rare earth prices, have scared away investment in new mining ventures.
Government initiatives and strategic stockpiles
The U.S. government has taken steps to strengthen domestic rare earth capabilities after recognising the risks of relying too heavily on Chinese supplies:
- The 2019 Critical Minerals Strategy labelled rare earths as essential materials needing secure supply chains
- The RESTART Act gave tax breaks to boost domestic production
- Executive Order 13817 required a Federal Strategy to ensure reliable critical mineral supplies
- The Department of Defence put over $30 million into rare earth separation facilities through the Defence Production Act
President Biden signed an executive order in March 2021 that stands out. It called for a 100-day review of critical material supply chains, including rare earth elements. This review suggested expanding domestic production, building stronger ties with allies, and investing more in recycling research.
Strategic stockpiles form another key part of American strategy. The National Defence Stockpile has bought more rare earth materials recently. The Department of Energy’s Critical Materials Institute at Ames Laboratory works on new solutions to rare earth supply problems.
Public-private partnerships have become essential to America’s rare earth strategy. The Department of Defence helps fund MP Materials to build domestic processing capabilities, which addresses a major supply chain weakness.
Challenges in processing and refining
Mining capacity alone won’t fix America’s rare earth vulnerabilities. The biggest hurdle lies in processing and refining—areas where China still holds almost complete control. Most rare earth concentrates from Mountain Pass must go to China for processing, which creates a major security risk.
Several factors create this processing challenge. Separating individual rare earth elements needs complex chemical processes that use dangerous materials and can create toxic waste. U.S. environmental rules make these operations cost much more than in countries with looser standards.
America also lacks knowledge in this field. Years of outsourcing have worn away domestic expertise in rare earth processing. Rebuilding these skills needs major investment in training and research. The technical complexity runs deep—separating elements with almost identical chemical properties requires advanced techniques and special equipment.
The economic picture remains unclear. Processing facilities need hundreds of millions in investment, while returns depend on changing rare earth prices. Private investors hesitate to take such risks without government backing or guaranteed demand.
Progress continues despite these challenges. MP Materials plans to add full processing capabilities at Mountain Pass by 2023. This would create North America’s only complete rare earth mining and processing facility. Several companies also develop new separation methods that could cut costs and environmental impact.
America’s strategy includes international teamwork. The U.S. has built formal partnerships with Australia, Canada and Japan to create alternative supply chains. They also look for opportunities with European allies who want to reduce their dependence on Chinese rare earths.
Australia
Image Source: The Business Research Company
Australia is a vital player in the global rare earth elements world. The country uses its rich mineral wealth and high environmental standards to offer a reliable alternative to Chinese dominance. Western nations rush to secure supply chains, and Australia’s growing production capacity shows promise in the quest to broaden rare earth sources.
Rare earth elements in Australia
Australia has about 3.4 million tonnes of rare earth oxides, which makes up roughly 4% of global reserves. These reserves might seem small compared to China’s vast deposits. However, Australian rare earths stand out because they’re easy to access, highly concentrated, and contain valuable heavy rare earth elements.
The country’s rare earth geology centres around several world-class deposits:
- Mount Weld in Western Australia – one of the world’s highest-grade rare earth deposits, rich in neodymium and praseodymium
- Nolans Bore in Northern Territory – holds large amounts of heavy rare earths and phosphate resources
- Browns Range in Western Australia – known for dysprosium and terbium, essential elements for permanent magnets
- Dubbo Project in New South Wales – a polymetallic resource with zirconium, hafnium, and niobium alongside rare earths
Australia ranks sixth globally in rare earth concentrate production with about 17,000 tonnes each year. This number doesn’t tell the whole story. The country focuses on higher-value rare earth elements rather than pure volume.
Australian mining operations follow strict environmental standards. This makes Australian rare earths more attractive to environmentally conscious manufacturers, especially those in Europe and North America who want responsibly sourced materials.
Australia’s role in diversifying global supply
Australia’s strategic value goes beyond raw production numbers. The country could help break China’s grip on rare earth processing. The Australian government sees rare earths as a critical resource and has created policies to expand domestic capabilities across the supply chain.
The Australian Critical Minerals Strategy launched in 2019 and updated in 2023 targets rare earth elements as development priorities. This led to major government investment, including a $1.5 billion Modern Manufacturing Initiative that puts substantial funding into critical minerals processing.
Australia sits in a prime spot in the Indo-Pacific region. The country’s stable democracy and strong rule of law make it an attractive partner for nations looking to reduce Chinese rare earth dependence. This has created several strategic collaborations:
- A formal Critical Minerals Partnership with the United States that enables investment and technical cooperation
- Japanese investment in Australian rare earth projects
- Talks with European partners about offtake agreements and processing technology
Australia has joined the Minerals Security Partnership, which includes the US, Japan, and European nations. This multinational initiative aims to build resilient supply chains for critical minerals. Australia helps alter the map of the rare earth market beyond just production.
Key mining companies and export markets
Lynas Rare Earths Ltd leads Australia’s rare earth sector. It’s the only major producer of separated rare earth products outside China. The company runs the Mount Weld mine in Western Australia and an advanced materials processing facility in Malaysia. Lynas has become the Western world’s most integrated rare earth supplier.
The company makes about 7,000 tonnes of rare earth oxides yearly and plans to double this by 2025. Lynas has locked in long-term contracts with Japanese manufacturers. The US Department of Defence recently gave them $120 million to build processing facilities in Texas.
Other companies are moving toward production:
Iluka Resources develops the Eneabba project in Western Australia. This will be Australia’s first fully integrated rare earths refinery, backed by $1.25 billion in government funding.
Arafura Resources pushes forward with the Nolans Project in Northern Territory to produce neodymium-praseodymium (NdPr). They’ve secured deals with Korean and Japanese partners.
Japan buys most of Australia’s rare earth exports – about 60%. This partnership grew stronger after China restricted exports in 2010, which hit Japanese manufacturers hard. South Korea, the United States, and European nations buy the rest, while India’s growing tech sector shows increasing interest.
Australian producers mainly export mixed rare earth carbonates and separated rare earth oxides. The separated oxides fetch much higher prices. These producers highlight traceability and sustainability throughout their supply chain. Manufacturers who care about environmental, social, and governance (ESG) standards value these qualities more and more.
Myanmar
Image Source: Stimson Centre
Myanmar plays a key role in the global rare earth elements supply chain, yet rarely gets mentioned in international talks about critical minerals. This Southeast Asian country, with its complex political scene and rich mineral deposits, has become a major source of these strategic materials. Local informal mining operations feed Chinese demand.
Myanmar’s rare earth resources
Rich deposits of rare earth elements lie in Myanmar’s northern Kachin State and central Mandalay Region. These areas hold valuable heavy rare earth elements like dysprosium and terbium. These materials are crucial for making permanent magnets used in electric vehicles and wind turbines.
The geology shows Myanmar’s rare earth resources exist mainly in ion-adsorption clay deposits like those in southern China. What makes these deposits so valuable:
- They hold more heavy rare earth elements than hard-rock deposits
- Miners can extract them with simple leaching methods
- The process uses nowhere near as much energy as traditional rare earth mining
No one knows exactly how much rare earth Myanmar has because of limited surveys and political unrest. Yet geological studies point to millions of tonnes of rare earth oxide equivalent. Most deposits sit along the Chinese border in areas that share Yunnan Province’s geological makeup.
Yes, it is more than just volume that matters—Myanmar now serves as China’s main source of heavy rare earth elements. The country supplies about 50% of China’s medium-to-heavy rare earth feedstock between 2020-2025.
Informal mining and environmental concerns
Myanmar’s rare earth industry looks nothing like the organised operations in Australia or the United States. Small-scale informal mining dominates here with little government oversight. These operations usually involve:
- Surface mining with simple equipment and manual labour
- In-situ leaching with ammonium sulphate solutions
- Few environmental controls or safety rules
- Poor documentation and export tracking
These activities harm the environment. Miners pump chemical solutions straight into clay deposits to extract rare earth elements. This leaves behind toxic soil and waterways. Local environmental groups report widespread forest loss, soil erosion, and water pollution across mining areas.
On top of that, health issues plague communities near mining sites. Uncontrolled chemical use and improper waste disposal lead to more breathing problems and water-borne diseases among locals.
Myanmar’s government tries to control rare earth mining from time to time. They banned rare earth exports in 2019, but enforcement remains weak due to limited resources and complex politics in mining regions. Meanwhile, informal mining continues, especially where non-state armed groups hold power beyond government reach.
China-Myanmar trade dynamics
The rare earth trade between Myanmar and China shows classic resource dependency. About 95% of Myanmar’s rare earth output goes straight to Chinese processors through formal and informal routes.
Official exports cross at the Ruili-Muse border checkpoint with basic inspection and paperwork. Yet unofficial trade thrives through many unwatched border crossings, mostly in areas that ethnic armed groups control.
Chinese companies have deep roots in Myanmar’s rare earth sector. They provide equipment, expertise, and money to local operators. Chinese merchants typically supply chemicals and basic equipment to Myanmar miners. Then they buy the rare earth concentrates at prices well below market rates.
This trade brings in big money. Myanmar’s rare earth exports to China topped $550 million yearly recently. China uses these imports to supplement its domestic production. This helps offset their production limits and environmental restrictions on Chinese mining.
Politics shapes this relationship too. After Myanmar’s 2021 military coup, China kept trading despite international sanctions and criticism. Rare earth trade fits into a bigger picture where China gets critical resources while giving Myanmar’s isolated regime economic support and diplomatic cover.
This setup shows China’s smart approach to securing rare earth supplies. They mix domestic production with strategic international partnerships to control the global supply chain.
India
Image Source: Reuters
India, a 5000-year-old civilisation now embracing technology, stands as an emerging force in the rare earth elements world. The country wants to secure its place among global suppliers. Despite its vast reserves, India hasn’t yet realised its rare earth potential, though recent government plans show a new direction.
India’s rare earth reserves and potential
India has about 6.9 million tonnes of rare earth oxide reserves, making it one of the world’s top five countries by resource endowment. These deposits lie mainly in Kerala, Tamil Nadu, and Odisha’s coastal regions, with more resources in Jharkhand and West Bengal. The country’s coastline has monazite sands that are available and rich in valuable light rare earth elements like neodymium and praseodymium.
China leads across all rare earth types, but Indian reserves excel in light rare earth elements. These elements hold strong market value for magnets and catalysts. The country faces natural limits with heavy rare earth elements like dysprosium and terbium, which remain vital for advanced technologies.
Today, India produces around 2,800 tonnes of rare earth oxides each year—a small amount given its reserves. This gap exists because of past low investment in extraction technology and strong infrastructure, plus regulations that kept private companies away.
Government policies and strategic goals
The Indian government understands rare earth elements’ strategic value and has launched several programmes:
- Creating IREL (India) Limited (formerly Indian Rare Earths Limited) as a public company to extract and process rare earth minerals
- The 2021 Atomic Minerals Concession Rules amendment that opened some rare earth mining to private investment
- Adding rare earth elements to India’s “Critical Minerals List” with policy benefits and research funds
Unlike Western countries, India keeps tight control over its rare earth sector through IREL’s monopoly on extraction and processing. This reflects the country’s view of some rare earth minerals as “atomic minerals” under resource rules.
The government plans to triple rare earth production by 2027. They’ll start by expanding monazite sand processing. Without doubt, these plans match broader programmes like “Make in India” and “Atmanirbhar Bharat” (Self-Reliant India) that focus on local manufacturing and less import dependence.
India’s role in the global REE market
Despite its huge reserves, India makes up less than 2% of global rare earth production. The country doesn’t have much sway in world markets and uses most production at home rather than exporting.
Japan plays a key role in India’s strategic position. After China restricted rare earth exports in 2010, India and Japan signed agreements on rare earth cooperation. This partnership continues today with Japanese investment in Indian processing plants and guaranteed purchase deals.
Right now, India contributes most to global markets through processed compounds instead of raw materials. IREL makes rare earth chlorides, carbonates, and some separated oxides, though complete separation capabilities are still growing.
India could transform global rare earth supply chains if it tackles these ongoing challenges:
- Few private companies investing and innovating
- Technology gaps in processing and separation
- Environmental risks from thorium in monazite sands
- Competition from established producers with better capabilities
Finally, India shows great promise but hasn’t reached its full potential in the global rare earth elements world. The nation has vast natural resources and steadily builds the technology and policies to exploit these resources for economic and strategic gains.
Comparison Table
| Country | Global Production Share/Volume | Reserves | Key Production Areas | Processing Capabilities | Notable Strategic Position |
|---|---|---|---|---|---|
| China | 70% (~210,000 tonnes annually) | 36% of global reserves | Bayan Obo (Inner Mongolia), Sichuan, Jiangxi, Guangdong, Fujian | Controls ~92% of global processing capacity | Rules the supply chain and leverages export policies as a geopolitical tool |
| United States | 15% of global concentrates | 20+ million tonnes (Mountain Pass only) | Mountain Pass (California), Round Top (Texas), Bear Lodge (Wyoming) | Limited, with most processing happening in China | Aims to cut Chinese dependence through major government programmes |
| Australia | ~17,000 tonnes annually | 3.4 million tonnes | Mount Weld, Nolans Bore, Browns Range, Dubbo Project | Growing capacity through Lynas with new facilities in planning | Leads Western supply with strong environmental standards and serves as a key US ally |
| Myanmar | ~50% of China’s medium-heavy REE feedstock | Not fully measured | Kachin State, Mandalay Region | Basic processing with main exports to China | Serves as China’s major informal supplier with notable environmental issues |
| India | 2,800 tonnes annually | 6.9 million tonnes | Kerala, Tamil Nadu, Odisha, Jharkhand, West Bengal | Limited operations mainly through IREL | Rising player focusing on domestic use with Japanese collaboration |
Conclusion
China’s control over rare earth elements shows a complex power dynamic that goes way beyond the reach and influence of mineral resources. China controls 70% of production and maintains a strong processing infrastructure, which creates a bottleneck for other nations. These obscure minerals have become powerful geopolitical tools through China’s grip on the supply chain.
Countries now recognise their strategic weakness from depending on a single supplier, and changes are happening quickly. The US has brought new life to domestic mining at Mountain Pass and invested heavily in processing capabilities through government programmes and strategic collaborations. Australian high-grade deposits and environmental standards make it the most promising alternative source for Western nations that seek supply chain security.
Myanmar has become an unexpected player in this field. It supplies about half of China’s medium-to-heavy rare earth feedstock through informal channels that carry potential risks. This relationship helps China extend its resource control beyond its borders. India holds substantial reserves but needs better extraction and processing technologies to tap into its full potential.
Rare earth elements’ control will shape future international relations, trade policies, and technological growth. Countries with reliable supplies will lead in green energy, advanced manufacturing, and defence technologies. Other nations that depend on single-source supply chains will face growing risks as these materials become vital to economic and national security.
This competition for rare earth control reflects a larger battle for technological and economic leadership in the 21st century. These 17 elements, though hidden from public view, represent one of today’s most important resource competitions that will determine which nations lead the next industrial and technological revolution.
FAQs
Q1. Which country dominates the global rare earth elements market in 2025? China remains the dominant force, controlling approximately 70% of global production and most of the processing capacity for rare earth elements.
Q2. How is the United States addressing its rare earth element supply challenges? The US is revitalising domestic mining, particularly at the Mountain Pass mine in California, while also investing heavily in processing capabilities through government initiatives and public-private partnerships.
Q3. What role does Australia play in the rare earth elements landscape? Australia has emerged as a crucial alternative supplier, leveraging its high-grade deposits and strong environmental standards to position itself as a reliable source for Western nations seeking to diversify their supply chains.
Q4. How significant is Myanmar’s contribution to the global rare earth supply? Myanmar has become a surprising player, supplying approximately 50% of China’s medium-to-heavy rare earth feedstock, primarily through informal mining operations with significant environmental concerns.
Q5. What potential does India have in the rare earth elements market? India possesses substantial rare earth reserves but is still developing its extraction and processing capabilities. The country aims to triple its production by 2027 and is focusing on expanding its role in the global market.