While China continues to dominate with 60% of global rare earth production, a striking diversification is underway as countries from Australia to Myanmar and even the United States are ramping up output, signaling a dramatic shift in this critical industry's supply chain.
Key Takeaways
- In 2022, global rare earth oxide (REO) production totaled 350,000 metric tons, with China's output at 210,000 MT representing 60% of the total
- China's rare earth mining quota for 2023 was set at 240,000 metric tons of REO equivalent, a 14% increase from 2022
- Australia's Lynas Rare Earths produced 16,783 tonnes of REO at its Mt Weld mine in FY2022, up 28% year-on-year
- Global identified rare earth reserves stand at 120 million metric tons REO as of 2023
- China's rare earth reserves are estimated at 44 million metric tons REO, 37% of global total
- Vietnam holds 22 million metric tons REO reserves, second largest globally
- Global REO consumption was 340,000 metric tons in 2022, nearly matching production
- Permanent magnets consumed 44% of global REO demand in 2022, totaling 150,000 tons
- Catalysts used 25% of REO, about 85,000 tons in 2022 for petroleum refining
- Global rare earth market value reached $5.3 billion in 2022
- NdPr oxide spot price peaked at $120/kg in March 2022, up 200% from 2021
- Dysprosium oxide price averaged $350/kg in 2022, volatile due to supply risks
- Permanent magnets account for 29% of REO use in EVs for traction motors
- Wind turbines use 200-600 kg NdFeB magnets per MW capacity globally
- Catalysts in fluid catalytic cracking units consume 20 kg REO per ton of catalyst
China leads global rare earth production, but new sources are emerging worldwide.
Applications and Technology
- Permanent magnets account for 29% of REO use in EVs for traction motors
- Wind turbines use 200-600 kg NdFeB magnets per MW capacity globally
- Catalysts in fluid catalytic cracking units consume 20 kg REO per ton of catalyst
- Glass polishing uses cerium oxide at 5 grams per square meter of display glass
- MRI contrast agents use 30-40% gadolinium by weight in macrocyclic chelates
- NiMH batteries contain 20-25% mischmetal (RE alloy) by weight
- LED phosphors use 3% yttrium and europium oxides in YAG:Ce
- Defense lasers employ 10-50 kg RE-doped glass per high-energy system
- Petroleum refining FCC catalysts hold 2-5% RE oxides for activity
- EV motors require 1.5-3 kg NdFeB per vehicle, 75% NdPr content
- Hard disk drives use 10-20 grams NdFeB per spindle motor
- Offshore wind farms deploy 5 tons REO magnets per MW installed
- Ceramic capacitors incorporate 1-2% RE dopants for stability
- Petroleum cracking catalysts recycle 80% of REO content annually
- Hybrid vehicles use 1 kg REO in NiMH batteries per unit
Applications and Technology Interpretation
The Rare Earths Industry is the quiet, indispensable hand behind the modern world, from whispering wind turbines and purring electric cars to the glowing screens we stare at, the fuel we burn, and the medical scans that save us, proving that our advanced society is fundamentally, and magnetically, glued together by a surprisingly small family of elements.
Market Demand and Consumption
- Global REO consumption was 340,000 metric tons in 2022, nearly matching production
- Permanent magnets consumed 44% of global REO demand in 2022, totaling 150,000 tons
- Catalysts used 25% of REO, about 85,000 tons in 2022 for petroleum refining
- Polishing powders consumed 12% or 40,000 tons REO in 2022, mainly cerium
- Glass additives used 5% of REO demand, 17,000 tons in 2022
- Battery alloys consumed 3% or 10,000 tons REO in 2022, growing rapidly
- Electric vehicle demand for NdPr oxide projected to reach 100,000 tons by 2030
- Wind turbine magnet demand consumed 20,000 tons NdFeB in 2022
- Consumer electronics used 30,000 tons REO in magnets and displays in 2022
- Japan's REO imports totaled 35,000 tons in 2022, down 5% from prior year
- US apparent consumption of REO was 15,000 tons in 2022, up 20%
- Europe's REO consumption estimated at 25,000 tons in 2022, reliant on imports
- China's domestic REO consumption was 240,000 tons in 2022, 70% of global
- NdPr demand grew 15% to 60,000 tons in 2022 driven by EVs
- Dysprosium demand for high-performance magnets was 1,500 tons in 2022
- Terbium consumption reached 450 tons in 2022 for EV motors
- Global REO demand forecast to hit 400,000 tons by 2025 at 4% CAGR
- Defense applications consume 1,000 tons REO annually worldwide
- Medical imaging uses 500 tons gadolinium-based REO per year globally
Market Demand and Consumption Interpretation
The world's green ambitions are currently glued together by 150,000 tons of fancy magnets, while a hefty 85,000 tons is still spent cleaning up the very fossil fuels we're trying to quit.
Pricing and Trade
- Global rare earth market value reached $5.3 billion in 2022
- NdPr oxide spot price peaked at $120/kg in March 2022, up 200% from 2021
- Dysprosium oxide price averaged $350/kg in 2022, volatile due to supply risks
- Cerium oxide price fell to $1.2/kg in 2022 from oversupply
- China's REO export quota for 2023 was 55,000 tons, down 35% from 2022
- US imported 85% of its REO from China in 2022, valued at $150 million
- Global REO trade volume was 100,000 tons in 2022, dominated by China exports
- Terbium oxide price hit $1,200/kg in 2022 amid shortages
- Lanthanum oxide traded at $1.1/kg average in 2022
- Praseodymium oxide price averaged $85/kg in 2022
- Rare earth carbonate (REC) price rose to $5/kg in 2022 from Australian producers
- China's domestic NdPr price premium over international was 20% in 2022
- Global NdFeB magnet price increased 50% to $100/kg in 2022
- Yttrium oxide spot price was $10/kg in 2022, stable for phosphors
- EU imposed carbon border taxes potentially adding 10% to REO import costs by 2026
- Japan's stockpile of REO covers 180 days of demand as of 2023
- Rare earth futures trading volume on Shanghai exchange reached 1 million tons equivalent in 2022
- Average REO basket price was $15/kg in 2022, varying by element mix
Pricing and Trade Interpretation
China's firm grip on the rare earth market is a tale of two extremes, where the soaring, volatile prices for the magnets in your EV or wind turbine are matched only by the sobering geopolitical reality that most nations are nervously buying from a single, quota-cutting source.
Production and Output
- In 2022, global rare earth oxide (REO) production totaled 350,000 metric tons, with China's output at 210,000 MT representing 60% of the total
- China's rare earth mining quota for 2023 was set at 240,000 metric tons of REO equivalent, a 14% increase from 2022
- Australia's Lynas Rare Earths produced 16,783 tonnes of REO at its Mt Weld mine in FY2022, up 28% year-on-year
- The United States' Mountain Pass mine produced 43,400 metric tons of REO in 2022, accounting for 12.4% of global supply
- Myanmar's rare earth production surged to an estimated 38,000 metric tons REO in 2022, primarily heavy rare earths
- Thailand's rare earth output reached 5,300 metric tons REO in 2022, driven by ion-adsorption clay deposits
- Russia's Lovozero mine produced approximately 2,700 metric tons of REO in 2022 from loparite ore
- India's rare earth production was 2,900 metric tons REO in 2022, mainly from monazite sands
- Brazil's Serra Verde project aims for 5,000 metric tons REO annual production by 2024 from ionic clays
- Greenland's Kvanefjeld project holds potential for 25,000 metric tons REO per year but remains undeveloped due to regulations
- Vietnam produced 4,300 metric tons REO in 2022, focusing on light rare earths from by-product sources
- Burundi's Gakara mine produced 200 metric tons REO in 2022 before suspension
- Canada's Nechalacho project produced initial 100 metric tons REO concentrate in 2021 trials, scaling in 2023
- South Africa's Steenkampskraal mine restarted with 2,500 metric tons REO capacity planned for 2024
- Madagascar's Tantalus project extracted 500 metric tons REO in 2022 from heavy mineral sands
- Global REO production capacity is projected to reach 500,000 metric tons by 2025, driven by non-Chinese expansions
- China's separation capacity for REO exceeds 250,000 metric tons annually as of 2023
- MP Materials' Mountain Pass facility processed 41,600 tons of REO concentrate into separated products in 2022
- Iluka Resources' Eneabba refinery in Australia produced 1,000 tons of rare earth carbonate in 2022 pilot
- Northern Minerals' Browns Range project in Australia produced 68 kg of dysprosium oxide in 2022 trials
- Global dysprosium oxide production was 1,800 metric tons in 2022, 95% from China
- Neodymium-praseodymium (NdPr) oxide production reached 65,000 metric tons globally in 2022
- Terbium oxide global output was 500 metric tons in 2022, critical for magnets
- Yttrium oxide production totaled 12,000 metric tons in 2022, used in phosphors
- Lanthanum oxide production was 120,000 metric tons in 2022, primarily for catalysts
- Cerium oxide global production hit 140,000 metric tons in 2022, for polishing applications
Production and Output Interpretation
While China continues to dominantly conduct the rare earths orchestra with a 60% share, the rest of the world is starting to tune up its own section of scrappy startups and strategic expansions in a bid to avoid a one-note supply chain.
Reserves and Mining
- Global identified rare earth reserves stand at 120 million metric tons REO as of 2023
- China's rare earth reserves are estimated at 44 million metric tons REO, 37% of global total
- Vietnam holds 22 million metric tons REO reserves, second largest globally
- Brazil's reserves are 21 million metric tons REO, including ionic clay deposits
- Russia's reserves total 10 million metric tons REO, mainly in Kola Peninsula
- India's monazite sands contain 6.9 million metric tons REO reserves
- Australia's reserves are 5.7 million metric tons REO, with Mt Weld holding 1.64 million tons
- United States reserves at 1.8 million metric tons REO, primarily Mountain Pass
- Greenland's resources exceed 11.1 million tons REO at Kvanefjeld and Kringlerne
- Canada's Nechalacho deposit has 94,000 tons REO indicated resources
- Sweden's Norra Kärr project has 278,000 tons TREO inferred resources at 0.68% grade
- Tanzania's Ngualla project holds 419,000 tons REO measured and indicated resources
- Greenland Ruby Mining's Amitsoq has 278 million tons at 210 ppm TREO
- Argentina's Tres Quebradas project has potential for 2.7 million tons REO resources from brine
- South Africa's Zandkopsdrift has 947,000 tons TREO indicated resources
- Wyoming's Bear Lodge project has 1.3 million tons REO measured resources
- Alaska's Bokan Mountain has 5.3 million lbs oxide resources for heavy REEs
- China's Bayan Obo mine holds over 35 million tons REO resources, world's largest
- Myanmar's Laowudong deposit estimated at 100,000 tons heavy REO resources
- Global rare earth exploration spending reached $500 million in 2022, up 20%
- Ion-adsorption clay deposits in southern China contain 500,000 tons heavy REE resources
Reserves and Mining Interpretation
While China dominates the board with nearly 40% of the world's known rare earths, the global game is heating up as nations from Vietnam to Greenland scramble to prove their soil holds more than just dirt, turning a former monopoly into a geopolitical treasure hunt.
Sources & References
- Reference 1PUBSpubs.usgs.govVisit source
- Reference 2REUTERSreuters.comVisit source
- Reference 3LYNASRAREEARTHSlynasrareearths.comVisit source
- Reference 4FASTMARKETSfastmarkets.comVisit source
- Reference 5ENERGYMONITORenergymonitor.aiVisit source
- Reference 6MININGmining.comVisit source
- Reference 7GREENLANDMINERALSgreenlandminerals.comVisit source
- Reference 8RAINBOWRAREEARTHSrainbowrareearths.comVisit source
- Reference 9VITALMETALSvitalmetals.com.auVisit source
- Reference 10STEENKAMPSKRAALsteenkampskraal.comVisit source
- Reference 11ENERGYFUELSenergyfuels.comVisit source
- Reference 12ADAMASINTELadamasintel.comVisit source
- Reference 13INVESTORSinvestors.mpmaterials.comVisit source
- Reference 14ILUKAiluka.comVisit source
- Reference 15NORTHERNMINERALSnorthernminerals.com.auVisit source
- Reference 16CHEETAHRESOURCEScheetahresources.com.auVisit source
- Reference 17LEADINGEDGEGEOLOGYleadingedgegeology.comVisit source
- Reference 18PEAKRESOURCESpeakresources.com.auVisit source
- Reference 19GREENLANDRUBYMININGgreenlandrubymining.comVisit source
- Reference 20LITHIUMAMERICASlithiumamericas.comVisit source
- Reference 21HARVESTMINERALSharvestminerals.netVisit source
- Reference 22RAREELEMENTRESOURCESrareelementresources.comVisit source
- Reference 23UMOCEANGOLDumoceangold.comVisit source
- Reference 24MINING-TECHNOLOGYmining-technology.comVisit source
- Reference 25SPROTTsprott.comVisit source
- Reference 26WOODMACwoodmac.comVisit source
- Reference 27STATISTAstatista.comVisit source
- Reference 28JOGMECjogmec.go.jpVisit source
- Reference 29ECec.europa.euVisit source
- Reference 30DODIGdodig.milVisit source
- Reference 31NCBIncbi.nlm.nih.govVisit source
- Reference 32ASIANMETALasianmetal.comVisit source
- Reference 33METALmetal.comVisit source
- Reference 34ARGUSMEDIAargusmedia.comVisit source
- Reference 35SHFEshfe.com.cnVisit source
- Reference 36ROSKILLroskill.comVisit source
- Reference 37IEAiea.orgVisit source
- Reference 38NRELnrel.govVisit source
- Reference 39CORNINGcorning.comVisit source
- Reference 40FDAfda.govVisit source
- Reference 41ENERGYenergy.govVisit source
- Reference 42OSRAMosram.comVisit source
- Reference 43DARPAdarpa.milVisit source
- Reference 44GRACEgrace.comVisit source
- Reference 45SEAGATEseagate.comVisit source
- Reference 46GWECgwec.netVisit source
- Reference 47MURATAmurata.comVisit source
- Reference 48TOYOTAtoyota.comVisit source