In this in-depth article, we’ll list the top countries producing rare earth metals to see how they are impacting this market. If you want to skip the detailed knowledge of rare earth metals’ use, market trends, and mining developments, read Rare Earth Metals Production By Country: Top 5 Countries.
China leads the pack with regard to rare earth metals production by country and will stay ahead of others in the foreseeable future. Other leading producers of rare earth metals are the United States, Australia, Myanmar, and Thailand, among others. Where China accounts for 70% of the global production of rare earth metals, the United States, Australia, and Myanmar collectively make up 24% of the world’s total throughput of rare earth metals.
Rare earth metals comprise a group of 17 chemically similar metallic elements, including the 15 lanthanides, along with scandium and yttrium. REEs are used in consumer electronics, renewable energy systems, and military equipment. Moreover, certain REEs like neodymium and dysprosium are used to manufacture permanent magnets used in wind turbines and electric vehicles.
High heat resistance, electrochemical and magnetic characteristics, and specific luminescent properties of rare earth metals make them useful in an array of advanced technological fields. For instance, REEs are integral to the production of high-strength magnets used in wind turbines and electric vehicles, thereby playing a crucial role in green energy solutions. Their magnetic properties also serve a vital role in miniaturizing components in digital technology, like hard drives, smartphones, and other electronic devices.
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Which Country Is The Largest Producer Of Rare Earth Metals?
China is the largest global producer of rare earth metals. China generated approximately 0.21 million metric tons of these elements in 2022. Further, China possesses 44 million metric tons of reserves of rare earth elements, which are yet to be exploited. So doubtlessly, China is the largest producer of rare earth metals, owing to its diverse mining sector and geological treasure.
Where Are Rare Earth Metals Found In The World?
The primary global source of REEs is China, which accounts for approximately 70% of the global REEs mining output. China’s dominance in rare earth metal production by country comes largely from the Bayan Obo Mining District in Inner Mongolia, the world’s largest known REEs deposit.
Outside of China, the Mountain Pass Mine, situated in southeastern California, is the primary rare earth metal deposit in the United States. Moreover, the Mount Weld Mine in Australia represents a significant source of REEs in the country.
Exploration efforts have also identified substantial REEs deposits in Canada (8.3 million metric ton reserves), South Africa (0.79 million metric ton reserves), Tanzania (0.89 million metric ton reserves), and Greenland (1.5 million metric ton reserves of REEs), among others. However, these countries are not actively mining REEs because of the complexity of extraction and separation processes, alongside environmental considerations and cost-prohibitiveness.
What Is The Main Issue With Rare Earth Extraction?
Irrespective of their name, rare earths are relatively abundant within the Earth’s crust. However, they’re often found dispersed in low concentrations. Therefore, their extraction and processing are economically challenging and environmentally detrimental. As the widespread distribution necessitates large-scale and invasive mining operations to obtain economically viable quantities, it results in high extraction costs. Further, the scatter and consequent low concentration make rare earth deposits less commercially viable to mine compared to other minerals, as more extensive energy and resources are required for extraction and subsequent refinement.
Another chief issue in rare earth extraction is the extensive environmental degradation and public health risks it poses. Most extraction methods consist of significant physical disruption of landscapes through open-pit mining and create large quantities of waste material.
Rare earths refinement is an energy-intensive and chemically complex process involving hazardous substances like concentrated acids. Accidental leaks or inappropriate disposal of these substances can lead to devastating ecological impacts and human health hazards. One infamous example is the Bayan Obo mining district in China which has witnessed severe groundwater contamination and associated health risks.
The Financial Side of Rare Earth Metals
The rare earth metals industry was valued at $7 billion in 2021. Moreover, forecasts predict this market will reach $15 billion by 2030, advancing at a solid CAGR of 9.1%, indicating rapidly increasing demand. Such growth stems from the role these metals play in advanced technology applications like renewable energy, electronics, and defense technologies, among others.
Furthermore, the world trade value for rare earth metals was reported to be approximately $2.71 billion in 2021. Burma (Myanmar), despite its complex socio-political landscape, surfaced as the top exporter of rare earth metals in 2021, with net exports valued at around $803 million. Since the country has abundant rare earth reserves and is possibly aided by foreign investment, it’s a leading exporter of REEs.
Conversely, China, despite being the largest producer of rare earth metals, was the largest importer of these resources in 2021, as its net imports were valued at an identical figure to the global trade value of $2.71 billion. Such intense imports of rare earth elements might appear paradoxical at first, but it can be rationalized by analyzing China’s domestic and international strategic policies.
Major Rare Earth Mining Companies and Stocks
Energy Fuels Inc (NYSE:UUUU) is a leading US uranium company with a current current market cap of $1.01 billion that works in the uranium supply line for nuclear facilities. And since uranium is also present as a by-product in rare earth metals, Energy Fuels Inc (NYSE:UUUU) is expanding its REE (rare earth element) capabilities. In 2021, Energy Fuels Inc (NYSE:UUUU) sold its three wholly owned subsidiaries to enCore Energy for $120 million. Energy Fuels Inc (NYSE American:UUUU) aims to utilize this cash to expand its REE, uranium, vanadium, and medical isotope business plans for the next two to three years.
Moreover, Mp Materials Corp (NYSE:MP) is the biggest producer of rare earth metals outside China. The company focuses on high-purity separated neodymium and praseodymium (NdPr) oxide. The market cap of Mp Materials Corp (NYSE:MP), as of the writing of this article, is $4.044 billion, which is substantial given the curtailed market footprint of REEs. Mp Materials Corp (NYSE:MP) operates Mountain Pass, which is the only integrated rare earth mining and processing site in North America.
Another REE stock to look out for is Tronox Holdings plc (NYSE:TROX), a manufacturer of virtually integrated titanium dioxide (TiO2), that is used in paints, plastics, and coatings. The current market cap of Tronox Holdings plc (NYSE:TROX) is $2.017 billion, owing to its expansive operations in the US, UK, Africa, and Australia. As rare earth metals are expected to stay in demand, Tronox Holdings plc (NYSE:TROX) is smart to invest in.
Our Methodology
We referred to the 2022 USGS Mineral Commodity Summaries published in 2023 to rank rare earth metals production by country. This document provided credible data on rare earth metals, as USGS is a leading authority in the mining and mineral industry. The 2023 edition provided a country-by-country breakdown of rare earth metals production so we could precisely map global production trends. Our sources for financial data and forecasts about rare earth metals included OECD and MarketWatch, among others.
Based on the USGS data, here is rare earth metals production by country:
10. Brazil
Rare Earth Metal Mine Production in 2022: 80 metric tons
Brazil’s rare earth metal production in 2022 was 80 metric tons, making it the 10th largest rare earth metal producing country. This mine yield came down from 500 metric tons and 600 metric tons in 2021 and 2020, respectively. However, this contraction does not reflect a depletion of resources as Brazil has expansive reserves, estimated at approximately 21 million metric tons of rare earth metals.
9. Madagascar
Rare Earth Metal Mine Production in 2022: 960 metric tons
The island nation of Madagascar registered 960 metric tons of rare earth metal production. While considerable, this output decreased from 3,200 metric tons reported in 2021. This drastic drop in production represents a decrease of over 70% and suggests a consequential shift in Madagascar’s mining industry, with potential implications for the global supply chain of these critical components.
8. Russia
Rare Earth Metal Mine Production in 2022: 2,600 metric tons
When it comes to rare earth metals production by country, Russia ranks eighth on our list. Russia contributed notably to the global supply of rare earth metals by producing 2,600 metric tons in 2022. Notably, this is just a fraction of the country’s potential output, owing to its significant reserves. As of recent estimates, Russia harbors 21 million metric ton reserves of these invaluable elements, which will impact the global mining sector in the foreseeable future.
7. India
Rare Earth Metal Mine Production in 2022: 2,900 metric tons
India is amongst the leading rare earth metals producing countries, owing to its 2,900 metric tons yield in 2022. India’s efforts towards locating rare earth elements have resulted in the identification of a considerable reserve of these metals. As per current estimations, India has a stockpile of 6.9 million metric tons of rare earth metals. Given these generous reserves that are yet to be exploited, India is surely a key player in meeting the global demand for rare earth metals. Future trajectories in this field will also significantly influence the global supply chain, given the expanding demand for these vital resources.
6. Vietnam
Rare Earth Metal Mine Production in 2022: 4300 metric tons
Vietnam’s mine throughput for rare earth metals was 4,300 metric tons in 2022, up from a humble mine yield of 400 metric tons in 2021. This achievement shows the country’s growing expertise and commitment to rare earth extraction. Concurrently, the country holds substantial potential with an estimated reserve base of 22 million metric tons of these crucial elements, asserting itself as a potential powerhouse in rare earth resources.
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Disclosure: None. Rare Earth Metals Production By Country: Top 10 Countries is originally published on Insider Monkey.