Rare Earth Resources Landscape: Understanding Global Reserve Distribution and Production Capacity Across Major Nations

The global demand for rare earth elements continues to surge as the clean energy transition and technological innovation reshape industrial priorities. Yet supply chain vulnerabilities persist, making it critical to understand which countries hold substantial rare earth stockpiles and what production capacity they can realistically deploy. While several nations rank among the world’s largest reserve holders, their actual output tells a different story—some countries sit on massive untapped resources while others dominate current extraction and processing.

The Global Picture: 130 Million Metric Tons of Reserves, but Concentrated Supply

Global rare earth reserves total approximately 130 million metric tons, distributed unevenly across the planet. In 2024, worldwide production reached 390,000 metric tons, a notable increase from 376,000 MT in 2023 and far above the 100,000 MT produced just a decade ago. This production surge reflects intensifying competition and investment, yet a handful of nations continue to exercise disproportionate control over supply chains.

According to the US Geological Survey, eight countries maintain rare earth reserves exceeding 1 million metric tons. These nations—spanning Asia, Europe, the Americas, and Oceania—represent the frontline in efforts to diversify and secure global rare earth supplies outside traditional bottlenecks.

China Dominates: 44 Million Metric Tons and Growing Strategic Control

China commands the world’s largest rare earth reserves at 44 million metric tons, alongside producing 270,000 MT in 2024—roughly 69% of global output. The country’s dominance extends beyond sheer volume; it reflects decades of vertical integration from mining through refining to downstream manufacturing.

China’s rare earth strategy has evolved considerably. After concerns about reserve depletion emerged in 2012, the government implemented aggressive replenishment policies, establishing both commercial and strategic stockpiles by 2016. Simultaneously, Beijing cracked down on illegal mining operations that violated environmental standards, effectively consolidating production under regulated actors and tightening export controls.

However, China’s market power has triggered international pushback. When the country restricted rare earth exports in 2010, global prices surged, catalyzing a global scramble for alternative sources. More recently, trade tensions between Washington and Beijing have intensified, with China imposing technology export bans on rare earth magnet production (December 2023) while the US pursues domestic supply chain development.

A less-publicized aspect of China’s strategy involves importing heavy rare earths from Myanmar, where environmental regulations lag far behind Chinese standards. Mountains along the China-Myanmar border have sustained severe ecological damage from mining operations, with vast unauthorized in-situ leaching operations—some 2,700 illegal collection pools covering an area equivalent to Singapore—identified as of mid-2022.

Brazil’s Untapped Potential: 21 Million Metric Tons Awaiting Development

Brazil represents the second-largest rare earth reserve holder globally at 21 million metric tons, yet produced only 20 metric tons in 2024. This dramatic gap between reserves and output signals an industry on the verge of transformation.

Serra Verde Mining initiated Phase 1 commercial operations at its Pela Ema deposit in Goiás state in early 2024, with projections reaching 5,000 MT of rare earth oxide annually by 2026. Pela Ema ranks among the world’s largest ionic clay deposits and represents a unique advantage: it will produce all four critical rare earth magnets—neodymium, praseodymium, terbium, and dysprosium—making it the sole non-Chinese operation capable of this comprehensive output. This positions Brazil as a potential game-changer in breaking Beijing’s historical stranglehold over heavy rare earth supply.

India’s Beach Sands Advantage: 6.9 Million Metric Tons of Accessible Resources

India holds 6.9 million metric tons of rare earth reserves while maintaining relatively stable annual production around 2,900 MT. A distinguishing factor: India hosts nearly 35% of the world’s beach and sand mineral deposits, which represent economically accessible sources of rare earths.

The Indian government has recognized this strategic advantage. Its Department of Atomic Energy outlined production and refining capacity in December 2022, while policymakers have been developing supportive legislation and R&D frameworks to capitalize on the nation’s reserve base. In October 2024, Trafalgar Resources announced plans to construct India’s first dedicated rare earth metals, alloy, and magnet production facility, signaling intent to move beyond raw material extraction toward higher-value processing.

Australia’s Expansion Phase: 5.7 Million Metric Tons and Rising Mine Output

Australia ranks fourth globally with 5.7 million metric tons of rare earth reserves and produced 13,000 MT in 2024, tied for fourth in production rankings. Despite only beginning rare earth extraction in 2007, the country has positioned itself as a critical counterweight to Chinese supply dominance.

Lynas Rare Earths operates the Mount Weld mine and concentration facility domestically, plus a refining complex in Malaysia, establishing itself as the world’s largest non-Chinese rare earths supplier. The company expects to complete a major Mount Weld expansion in 2025, while its new Kalgoorlie processing facility commenced mid-2024 production of mixed rare earth carbonate feedstock for its Malaysian operations.

Hastings Technology Metals’ Yangibana project is construction-ready, having recently secured an offtake agreement with Baotou Sky Rock for concentrate production. The operation targets 37,000 MT of rare earth concentrate annually with initial delivery projected for Q4 2026, adding meaningful capacity to the non-Chinese supply landscape.

Russia’s Constrained Trajectory: 3.8 Million Metric Tons and Uncertain Future

Russia officially holds 3.8 million metric tons of rare earth reserves in 2024, a dramatic revision downward from 10 million MT reported the previous year based on updated company and government assessments. Russian production in 2024 reached 2,500 MT, matching the prior year’s output.

Moscow had announced intentions in 2020 to invest $1.5 billion to challenge China’s rare earth hegemony. Yet Russia’s military engagement in Ukraine has fundamentally altered domestic priorities, with credible indicators suggesting the government has shelved ambitious rare earth development plans while managing wartime constraints. This geopolitical disruption raises questions about whether Russia can meaningfully expand its rare earth sector in the medium term.

Vietnam’s Revised Reserves and Production Challenges: 3.5 Million Metric Tons

Vietnam’s rare earth reserves stand at 3.5 million metric tons following a significant downward revision from 22 million MT in 2023, reflecting updated industry and government data. The country produced just 300 MT in 2024 despite hosting multiple deposits concentrated near its northwestern border with China and along its eastern coast.

Vietnam had articulated a 2030 production target of 2.02 million MT, but this objective faced setbacks following the October 2023 arrests of six rare earth executives, including Vietnam Rare Earth’s chairman. The latter faced allegations of fraudulent value-added tax documentation in rare earth trading, signaling regulatory crackdowns that could constrain near-term expansion.

United States: Significant Production, Limited Reserves—A Supply Chain Paradox

The United States occupies seventh position in rare earth reserves at 1.9 million metric tons, yet ranks second in 2024 production with 45,000 MT. This paradox reflects reliance on the singular Mountain Pass mine in California, operated by MP Materials. The company is currently establishing downstream capabilities at its Fort Worth facility to convert refined rare earth oxides into magnets and precursor products, signaling vertical integration ambitions.

The Biden Administration underscored rare earth supply chain importance by allocating $17.5 million in April 2024 toward developing rare earth processing technologies utilizing secondary coal and coal by-products as feedstocks. This initiative targets resource independence while potentially opening alternative supply chains beyond primary ore mining.

Greenland’s Strategic Deposits: 1.5 Million Metric Tons in Development Limbo

Greenland holds 1.5 million metric tons of rare earth reserves distributed across two significant projects: Tanbreez and Kvanefjeld. Despite possessing no current rare earth production, recent corporate activity signals potential commercialization.

Critical Metals completed Stage 1 acquisition of a controlling stake in Tanbreez from private operators in July 2024 and commenced drilling in September to refine resource models and mine-life projections. Meanwhile, Energy Transition Minerals has encountered regulatory friction with Greenland’s government over the Kvanefjeld project. Its operating license was revoked due to uranium exploitation plans; a revised proposal excluding uranium was similarly rejected in September 2023, with the company awaiting a court decision on its appeal as of October 2024.

Greenland’s rare earth assets have attracted international attention, including from US political leadership. However, Greenland’s Prime Minister and the Danish King have explicitly stated the territory remains non-negotiable, establishing firm boundaries around sovereignty concerns.

Understanding Rare Earth Elements: Core Concepts and Applications

What constitutes rare earth metals?

Rare earth metals encompass 17 naturally occurring elements: the 15-member lanthanide series plus yttrium and scandium. These 17 elements separate into “heavy” and “light” classifications based on atomic weight, with heavy rare earths commanding premium demand due to specific technological applications, though light rare earths maintain significant industrial importance.

Distinguishing rare earths from lithium

A common misconception conflates rare earth metals with lithium. Lithium belongs to the alkali metal group alongside sodium, potassium, rubidium, and cesium—a fundamentally different classification. This distinction matters for supply chain analysis and technology applications.

Which rare earth metals drive modern technology?

Specific rare earths occupy critical roles across industries. Neodymium and praseodymium feature prominently in permanent magnets for wind turbines, electric vehicles, and aerospace engines. Samarium and dysprosium strengthen high-temperature magnet performance. Phosphor-based rare earths—europium, terbium, yttrium, cerium, lanthanum, and gadolinium—enable lighting technologies and display applications across consumer electronics.

How do mining methods vary?

Two primary extraction pathways dominate rare earth production. Open-pit mining follows conventional protocols: ore excavation, separation from tailings, and refining through chemical processing. In-situ leaching involves injecting chemical solutions into orebodies to dissolve target materials into recoverable brine, subsequently pumped to collection pools. Both methods require sophisticated final-stage separation given the chemical similarity between rare earth elements—a technically demanding and cost-intensive process typically employing solvent extraction methodology.

Why does rare earth separation present technical barriers?

Despite their name, rare earths aren’t exceptionally scarce; economic deposits are the genuine scarcity. Heavy rare earth orebodies prove particularly difficult to locate relative to light rare earth concentrations. The separation challenge intensifies difficulties: because rare earth elements exhibit similar chemical properties, isolating individual elements demands hundreds to thousands of extraction cycles to achieve commercial-grade purity according to the Science History Institute. This complexity drives elevated processing costs and specialized technical expertise requirements.

Environmental costs of rare earth extraction

Rare earth mining carries substantial environmental risks, particularly in unregulated contexts. Ores containing rare earth elements frequently host thorium and uranium—radioactive materials requiring careful separation. Inadequately managed radioactive waste frequently contaminates groundwater and surface waters, devastating local ecosystems and compromising water security for adjacent populations. Southern China and Northern Myanmar exemplify these impacts: mountains have undergone severe ecological transformation through intensive mining activity. A Global Witness investigation documented over 100 landslides in China’s Ganzhou region attributable to in-situ leaching damage, with Myanmar experiencing comparable geological degradation alongside documented wildlife population collapse and drinking water access challenges for affected communities.

Europe’s emerging rare earth landscape

Europe currently operates zero rare earth mines despite hosting multiple countries with significant reserves. Sweden’s state-owned LKAB announced identification of the continent’s largest deposit—the Per Geijer formation—containing over 1 million metric tons of rare earth oxides in early 2023. The European Union’s Critical Raw Materials Act framework creates policy momentum for developing indigenous supply chains, potentially positioning the Per Geijer deposit as a cornerstone resource for continental supply security.

Countries across the Fennoscandian Shield—including Norway, Finland, and Sweden—host rare earth deposits reflecting regional mineralization patterns similar to Greenland’s geological profile. These European reserves may assume heightened strategic importance as supply chain diversification becomes a policy priority.

What drives global production growth?

Rare earth production has accelerated markedly: a decade ago, global output stood slightly above 100,000 MT; by 2019, production surpassed 200,000 MT for the first time; current 2024 output of 390,000 MT reflects sustained expansion driven by clean energy infrastructure deployment, electric vehicle manufacturing proliferation, and technology sector demands. Future production dynamics will hinge on successful commercialization of projects in Brazil, Australia, and other reserve-rich nations, alongside technological advances in extraction and separation efficiency.

The geographic concentration of rare earth reserves among these eight major countries—spanning diverse geopolitical contexts from allied democracies to strategic competitors—underscores the urgency surrounding supply chain resilience, technological innovation in separation processes, and international cooperation frameworks designed to ensure stable, diversified rare earth availability for the global economy’s technological and energy transition requirements.