Among The Top 10 Rare Earth Metal Production Countries in The World, China Dominates, Accounting For 70% Of The World's Total Production.

Among the top 10 rare earth metal production countries in the world, China dominates, accounting for 70% of the world's total production.

 

China is by far the largest producer of rare earth metals, but what are the other top ranked countries? Find out here.

 

In 2022, production of rare earth metals is on the rise again, with global output jumping to 300,000 tonnes, up sharply from 190,000 tonnes in 2018 four years ago.

As renewable energy becomes more important globally, demand for metals is also increasing. Rare earths such as neodymium and praseodymium are important in clean energy applications and high-tech industries, and they are in the spotlight as electric and hybrid vehicles grow in popularity.

 

Ongoing tensions between the U.S. and China, along with other sociopolitical factors, are weighing on the rare earth investment outlook. With China by far the world's largest producer of rare earths, the fraught relationship between the two countries is drawing attention to disruptions in the global supply chain for the rare earths industry.

With this in mind, it is useful to look at mine production of rare earth metals. Here are the 10 countries with the most rare earth mining in 2022, according to the latest data from the US Geological Survey.

1. China

Mine output: 210,000 tons

 

As mentioned earlier, China has dominated rare earth production for some time. In 2022, China's domestic production will be 210,000 tons, up from 168,000 tons the previous year, accounting for about 70% of the world's total.

 

Chinese producers must comply with a rare earth production quota system. The quota for rare earth smelting and separation in 2022 is 202,000 tons (162,000 tons in the previous year). Interestingly, this system made China the world's largest importer of rare earths in 2018.

 

The quota system is a response to China's longstanding problem of illegal rare earth mining. Over the past decade, China has taken steps to clean up its practices, including shutting down illegal or non-environmentally friendly rare earth mines and restricting rare earth production and exports.

 

Currently, six state-owned miners run China's rare earth industry, theoretically allowing China to maintain strong control over rare earth production. However, illegal rare earth mining remains a challenge, and the Chinese government continues to take steps to curb this activity.

2. United States

Mine output: 43,000 tons

 

The United States produced 43,000 tons of rare earths in 2022, up from 42,000 tons the year before.

 

Current U.S. supply of rare earths comes only from the Mountain Pass mine in California, which underwent care and maintenance in the fourth quarter of 2015 and resumed production in the first quarter of 2018. It was operated by Molycorp prior to bankruptcy and was then acquired by MP Mine Operation (now MP Materials).

 

The United States is a major importer of rare earth materials, with demand for compounds and metals set to reach $200 million in 2022; this figure is up from $160 million in 2021. China has classified rare earths as a critical mineral, a distinction that has become more pronounced due to trade issues between the United States and China.

3. Australia

Mine output: 18,000 tons

 

Australia's rare earth production has been rising steadily over the past few years. However, its production will fall to 18,000 tonnes in 2022 from 24,000 tonnes in 2021.

 

The country has the world's sixth-largest reserves of rare earths and is poised to increase production. Lynas, which operates the Mount Weld mine and concentrator in the country, announced in 2019 plans to increase production of neodymium-praseodymium products to 10,500 tonnes per annum by 2025.

 

Australia's Northern Mining Corporation mined the country's first heavy rare earth deposit in 2018. Its main products are terbium and dysprosium, the latter used in technologies such as permanent magnets.

4. Myanmar

Mine output: 12,000 tons

 

Myanmar mined 12,000 tonnes of rare earths in 2022, down more than 65% from 35,000 tonnes the previous year.

 

There is little information on the country's rare earth deposits and mining projects, but the country does have close ties to China. Myanmar provides 70% of China's medium rare earth and heavy rare earth raw materials. A military coup in Myanmar in 2021 could affect rare earth production.

5. Thailand

Mine output: 7100 tons

 

Thailand's rare earth production more than doubled from 3,600 tons in 2020 to 8,200 tons in 2021; however, this figure slipped to 7,100 tons in 2022. The country's rare earth reserves are not yet known, but the country remains one of the top 10 producers of rare earth metals.

 

6. Vietnam

Mine output: 4300 tons

 

Vietnam's rare earth production has increased nearly 11 times from 400 tons in 2021 to 4,300 tons in 2022. Vietnam, which reportedly has several rare earth deposits along its northwestern border with China and along its eastern coastline, is interested in building its clean energy capabilities, including solar panels, for which it is said to be looking to supply chains for Produce more rare earths.

 

7. India

Mine output: 2900 tons

 

India's rare earth production in 2022 is only 2,900 tons, unchanged from the previous year, accounting for about 1% of global rare earth supply. India's rare earth production is well below its potential because the country is home to nearly 35% of the world's sandy sand deposits, an important source of rare earths.

 

8. Russia

Mine output: 2600 tons

 

Russia produced 2,600 tonnes of rare earths in 2022, almost the same as the previous four years. Before the Russo-Ukrainian war, the Russian government was said to be "unsatisfied" with its supply of rare earths. Russia has reportedly lowered mining taxes and offered discounted loans to investors investing in nearly a dozen projects aimed at increasing Russia's share of global rare earth production to 10% by 2030 from the current 1.3%. In terms of global rare earth reserves, Russia is tied with Brazil for third place.

 

The Russia/Ukraine war has raised fears of disruption to the US/European supply chain for rare earths.

 

9. Madagascar

Mine output: 960 tons

 

Madagascar recorded 96 billion tons of rare earths mined in 2022, down from 680 billion tons the year before. The country hosts the Tantalus Rare Earth Project, which is said to contain 562,000 tonnes of rare earth oxides.

 

10. Brazil

Mine output: 80 tons

 

Back in 2012, Brazil discovered rare earth deposits worth $8.4 billion. The country has 21 million tons of rare earth reserves. So far, Brazil does not appear to be investing much energy in discovering rare earth minerals, and by 2022, Brazil's rare earth production will be only 800,000 tons.