China currently controls more than 69 percent of the world’s rare earth production.
The global rare earth industry is a complex landscape dominated by China, creating a critical need for global supply chain diversification. This sector faces challenges, but the future will focus on innovation, sustainable mining and international cooperation to ensure a secure supply of these essentials.
In the year By 2023, global production of rare earths will reach 350,000t of rare earth oxide (REO) equivalent. China currently dominates global rare earth production, accounting for over 69% that year. This dominance extends beyond mining, with China producing nearly 90% of the world’s rare earths. While China’s lower production costs and superior refining capabilities contribute to this dominance, its production quotas and export bans are threatened.
Recognizing the risks associated with overreliance on China, countries are diversifying their supply chains. The US, which will account for 12.3% of global production by 2023, is leading this effort, and the reopening of the Mountain Pass mine is a major step forward. Other countries, such as Madagascar and Uganda, are finding their own reserves to challenge China’s monopoly. However, competing with China’s low-cost manufacturing and established supply chain remains a major hurdle.
Burma will account for 10.9% of global production in 2023. However, Burma’s rare earth industry is shrouded in controversy, with much of the production coming from unregulated small-scale mines linked to armed militia groups. These operations often ignore local regulations and lack proper improvement plans. Other key producers are Australia, Thailand and India; In the year By 2023, these countries will account for a total of 8% of global GDP.
Australia, which has high reserves, is developing its processing capacity. Lynas is a renowned Australian company specializing in high quality, diversified rare earth products and expanding downstream processing. Other Australian companies such as Northern Minerals and Arafura Resources are also targeting high-value rare earth elements such as dysprosium and terbium. Thailand plays a major role in the downstream process, while India, despite its large reserves, faces challenges in extraction, environmental regulations and downstream development.
Ensuring a stable and sustainable supply of rare earths is critical to continued technological progress and economic growth. This requires a multi-pronged approach, including: