In 2024, global rare earth metal production surged to 390,000 metric tons, nearly tripling from 132,000 metric tons in 2017. Rare earth elements like neodymium, dysprosium, praseodymium, and yttrium are critical for electric vehicles, renewable energy, military equipment, and high-tech industries. As artificial intelligence technology rapidly develops, demand for these elements continues to rise.
However, geopolitical tensions between the US and China, together with supply chain risks, are reshaping the global rare earth industry. The sector remains highly concentrated and geographically polarized. While China’s dominance remains unchallenged in the short term, the US and its allies are working to restructure supply chains through tariffs, resource alliances, and technological investments. Nevertheless, challenges such as Myanmar’s political instability, environmental controversies in Africa, and corruption in Southeast Asia highlight the complexity and vulnerability of resource competition underlying the green energy transition.
The latest US Geological Survey (USGS) report reveals the top 10 rare earth-producing countries in 2024:
China remains the global leader in rare earth production, accounting for 270,000 metric tons in 2024 (up from 255,000 metric tons in 2023). Production is heavily focused on light rare earth elements, particularly neodymium and praseodymium used for magnets. The largest rare earth mining company, Northern Rare Earth (SHA:600111), operates the world’s largest rare earth mine at Bayan Obo, Inner Mongolia. To address illegal mining, China enforces quotas and enhanced oversight, including new regulations introduced in October 2024 requiring end-to-end traceability systems. Notably, China has been the world’s largest importer of rare earths since 2018.
The US increased its production to 45,000 metric tons in 2024, making it the second-largest producer. However, all rare earths supplies come from the Mountain Pass mine in California, owned by MP Materials. US rare earth imports dropped to $170 million in value. Rare earth elements are classified as “critical minerals,” and to reduce dependency on China, the Biden administration announced a 25% tariff on Chinese rare earth magnets starting in 2026. Additionally, during his tenure, Trump proposed aggressive measures to secure rare earth resources, including strategies involving Greenland and Canada.
Myanmar’s output fell sharply by 27% year-on-year to 31,000 metric tons in 2024, although it remains the third-largest producer globally. Rare earth mining in Myanmar is highly controversial due to unregulated small-scale mining, links to armed groups, and severe environmental damage. China depends on Myanmar for 70% of its medium-to-heavy rare earth feedstock, but disruptions increased in 2024 after the Kachin Independence Army seized key mining hubs in Kachin State, affecting China’s supply.
Australia produced 13,000 metric tons of rare earths in 2024, marking a decline from the previous year. Despite this, Australia holds the fourth-largest rare earth reserves globally and is expanding its output. The government has supported key projects like Lynas’ Mount Weld mine, which will boost its annual neodymium-praseodymium (NdPr) production capacity to 12,000 metric tons by 2025. The government has also allocated substantial funding to the Nolans project and the Enneaba rare earth refinery.
Nigeria emerged as a growing force in rare earth production, posting an 80% year-on-year increase to reach 13,000 metric tons in 2024. While the extent of its reserves remains uncertain, the country signed an agreement with France in late 2024 to develop critical minerals, including rare earths.
Thailand’s rare earth production grew an extraordinary 261% year-on-year to 13,000 metric tons, positioning the country as a rising player in Southeast Asia. Chinese automaker BYD invested $486 million in an EV factory in Thailand, and analysts believe the country’s favorable low-tariff policies will attract more Chinese companies, boosting its rare earth processing and manufacturing capabilities.
India’s rare earth production remained stagnant at 2,900 metric tons, constituting less than 1% of global output. Despite holding 35% of the world’s beach sand mineral deposits, India has yet to fully unlock its potential. In 2023, India joined the US-led Minerals Security Partnership (MSP) to overcome development bottlenecks through international collaboration.
Russia’s production remained stable at 2,500 metric tons in 2024 but ranks fifth globally in reserves. To reduce dependency on China, the Russian government has implemented tax cuts and provided discounted loans, aiming to increase its global market share from 1.3% to 10% by 2030. Despite these incentives, progress at the country’s largest rare earth deposit, Tomtor, has been slow, prompting President Putin to call for government intervention to accelerate development.
Madagascar’s rare earth production fell to 2,000 metric tons, significantly below its 2021 peak of 6,800 metric tons. This decline is largely due to opposition from local farmers. The Ampasindava region hosts 628 million tons of ionic clays, one of the largest non-Chinese reserves globally, though its development prospects remain uncertain.
Vietnam’s production dropped by 75% year-on-year to 300 metric tons in 2024, despite holding the world’s sixth-largest reserves. While the government aims to boost rare earth extraction and processing to 2 million metric tons annually by 2030, corruption scandals in 2023 have delayed critical mining auctions and deterred foreign investment.
These figures highlight the evolving landscape of global rare earth production, with China’s dominance persisting but growing opportunities and challenges emerging for other nations.
