China Dominates the Rare Earths Market

(January 2023) The modern global economy is highly dependent on the rare earth metals and minerals. Rare earth elements play a critical role in developing new industries such as wind power generation, fuel cells, hydrogen storage and rechargeable batteries, as well as the permanent magnets used in electric and hybrid-electric vehicles. Of the 17 rare earth elements, neodymium, praseodymium, dysprosium, and terbium are especially in demand, given their use in permanent magnets for electric vehicles and wind turbines.

• According to the U.S. Geological Survey China has 44 million metric totes reserves of rare earths, which accounts for 35% of the world’s rare earth reserves. Vietnam, Brazil and Russia have 21-22 million ton of rare earth reserves.
• Production of rare earth oxides has remained concentrated. British Geological Survey data shows that China now accounts for 68% of global rare earth oxides production, followed by Myanmar (14%), United States (9%) and Australia (6%). 
• 85% of rare earth processing capacity are located in China, which manufactures over 90% of high-strength rare earth permanent magnets.