Rare earth metal production was on the rise again in 2023, jumping to 350,000 metric tons (MT) worldwide — that’s up significantly from 190,000 MT in 2018, just five years prior.
Demand for rare earth metals is increasing as renewable energy becomes more important across the globe. Rare earths such as neodymium and praseodymium, which are important in clean energy applications and high-tech industries, are in the spotlight, particularly as electric vehicles and hybrid cars gain further popularity.
Ongoing tensions between the US and China, along with other geopolitical factors, are impacting the outlook for rare earths investing. Since China is the world’s largest producer of rare earths by far, the fraught relationship between the countries is directing attention to global supply chain disruption in the rare earths industry.
Mine production: 240,000 metric tons
In 2023, China’s domestic output of rare earths was 240,000 metric tons, up from 210,000 MT the previous year.
China’s rare earths industry is controlled by state-owned miners, in theory allowing China to keep a strong handle on production. However, illegal rare earths extraction remains a challenge, and the Chinese government continues to take steps to curb this activity.
Mine production: 43,000 metric tons
The US produced 43,000 metric tons of rare earths in 2023, up from 42,000 MT in the previous year.
The US is a major importer of rare earth materials. The USGS estimates the value of US rare earth imports for 2023 at US$190 million, down from US$208 million in 2022. The country has classified rare earths as critical minerals, a distinction that has come to the fore due to trade issues between the US and China.
Mine production: 38,000 metric tons
Myanmar mined 38,000 metric tons of rare earths in 2023. This was an increase of more than 216 percent from the 12,000 MT Myanmar produced in 2022, as supply was down due to a temporary halt in production associated with the turmoil following the 2021 military coup.
Ironically, the act of mining these metals critical for clean energy technologies such as EVs and wind turbines is itself fraught with environmentally destructive practices that are harming the waterways, wildlife and vegetation in Myanmar.
Mine production: 18,000 metric tons
Mine production: 7,100 metric tons
Thailand’s rare earths production came in at 7,100 metric tons in 2023, level with the prior year. However, the country’s rare earth production has ramped up rapidly in recent years. Thailand’s output of rare earths in 2018 was just 1,000 MT and by 2021 it had hit 8,200 MT.
Mine production: 2,900 metric tons
Mine production: 2,600 metric tons
Mine production: 960 metric tons
Madagascar recorded rare earths extraction of 960 metric tons in 2023, on par with the previous year and down dramatically from 6,800 MT in 2021.
The declining in rare earths production in recent years is due in large part to increasing opposition to rare earths mining on the part of farmers who are strongly against mining activity in their communities.
Mine production: 600 metric tons
Mine production: 80 metric tons
Mine production: 80 metric tons
Malaysia produced 80 metric tons of rare earths in 2023, on par with its output in the previous year and tying with Brazil for 10th place. Malaysia hosts the world’s fourth largest rare earth reserves.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content
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