Case in point — mines in Brazil produced only 80 metric tons (MT) of rare earth elements in 2023, but the nation’s reserves are tied for third highest in the world. It’s possible that countries like this could become bigger players in the space in the future.
One caveat is that reserves information is unavailable for a few rare earths producers, including Myanmar which took the third spot for rare earths production last year.
Reserves: 44 million MT
Unsurprisingly, China has the highest reserves of rare earth minerals at 44 million MT. The country was also the world’s leading rare earths producer in 2023 by a long shot, putting out 240,000 MT.
Reserves: 22 million MT
Vietnam’s rare earths reserves stand at 22 million MT. It reportedly hosts several deposits with concentrations against its northwestern border with China and along its eastern coastline. The majority of rare earths in the country can be found in primary ore deposits, with a smaller amount located in coastal placer deposits. While this potential was previously untapped, that has now changed as the country looks to become an alternative to China.
Reserves: 21 million MT
Although Brazil has the third largest rare earths reserves globally, the latin nation was not a major producer of rare earths in 2023, with production flat at a tiny 80 MT on par with the previous year and even lower than its 2021 total of 500 MT.
Reserves: 10 million MT
Reserves: 6.9 million MT
Reserves: 5.7 million MT
While Australia was the fourth largest rare earths-mining country in 2023 at 18,000 MT of production, it has the sixth largest reserves in the world. Currently, its reserves stand at 5.7 million MT.
Reserves: 1.8 million MT
While the US reported the second highest output of rare earths in 2023 at 43,000 MT, the country takes the seventh top spot in terms of global rare earths reserves.
Rare earths mining in the US now happens only at California’s Mountain Pass mine. Over the past few years, the Biden Administration has made several moves toward strengthening the nation’s rare earths industry.
Reserves: 1.5 million MT
Lithium is not a rare earth metal. It is an alkali metal in the same group as sodium, potassium, rubidium and cesium.
Global rare earths reserves amount to 130 million MT. With demand for rare earth minerals ramping up as hype about electric vehicles and other high-tech products continues, it will be interesting to see how the top producers contribute to future supply.
China has consistently been the largest producer of rare earths, and its 2023 production made up 240,000 MT of the world’s 350,000 MT. In terms of specific rare earths mines, the top producer is the Bayan Obo mine in Inner Mongolia, an autonomous region in Northern China. The mine is owned by the state-owned Baotou Iron and Steel Group.
Rare earth metals play a significant role in various technologies. They are often used in electronics such as laptops and smartphones. Rare earth oxides such as neodymium and praseodymium are used in magnets, aircraft engines and green technologies, including wind turbines and electric vehicles. Samarium and dysprosium are also used in rare earth magnets. Phosphor rare earths such as europium, terbium and yttrium are used in lighting, as are cerium, lanthanum and gadolinium.
Although rare earths aren’t as rare as you might assume from the name, finding economic deposits is very difficult. This is even more so the case for the heavy rare earths, as orebodies containing them are less abundant versus light rare earths.
Lastly, the environmental risks associated with rare earths mining mean even more care needs to be taken to minimize damage to the environment and to the people near the mine.
Rare earths mining can be very damaging to local environments, especially when it comes to illegal and unregulated mines. A major issue with mining rare earths is that the ore they are extracted from also often contains thorium and uranium, which are both radioactive. This means the separation of rare earths from this ore must be handled carefully, as the waste produced will be radioactive as well.
Additionally, the in-situ leaching process can damage the rocks that are being extracted. Global Witness found that over 100 landslides have already taken place in China’s Ganzhou region as a result of this extraction, and the damage to Myanmar’s mountains is substantial as well.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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