Highlights
- U.S. rare earth production increased to 45,000 metric tons in 2024, but remains heavily dependent on foreign imports and refining capabilities.
- Global rare earth mining surged to 390,000 metric tons, with China dominating 70% of production and maintaining market leadership.
- Strategic policy decisions in 2025 will be crucial in determining whether the U.S. can develop a fully integrated rare earth supply chain and reduce foreign dependency.
The United States made strides in rare earth element (REE) production in 2024, increasing its domestic output to 45,000 metric tons of rare-earth-oxide (REO) equivalent—an increase from 41,600 metric tons in 2023. The Mountain Pass mine in California remained the nation’s primary producer, while additional rare earth compounds were processed in the Western U.S. Despite these gains, the U.S. still heavily relies on imports for refined rare earth compounds, metals, and permanent magnets. Imports of rare-earth compounds declined to 8,000 metric tons, while rare-earth metals imports dropped sharply to just 90 metric tons, down from 476 metric tons in 2023. This underscores the lack of domestic refining and magnet production, leaving the U.S. vulnerable to supply chain disruptions.
A Shifting Trade and Production Landscape
Total rare earth-related imports into the U.S. were valued at $170 million, reflecting an 11% decrease from 2023, as China remained the dominant supplier, accounting for 70% of U.S. rare-earth imports from 2020 to 2023. Global REE mining surged to 390,000 metric tons in 2024, driven by expansion in China, Nigeria, and Thailand. China alone produced 270,000 metric tons, securing its dominance. Australia, the second-largest producer, reported a decline to 213,000 metric tons, while the U.S. contributed just 11.5% of global supply reports the United States Geological Survey (opens in a new tab).
Market Dynamics and Pricing
The rare earth market saw a price correction in 2024. Neodymium oxide, crucial for high-performance magnets, dropped to $56 per kilogram, down from $78 per kilogram in 2023. Terbium oxide, a key element for high-efficiency magnets, fell 38% to $810 per kilogram. Dysprosium oxide, essential for high-temperature applications, dropped to $260 per kilogram, reflecting decreased demand and increased supply stabilization.
These price movements illustrate the volatility in the REE market, largely dictated by China’s production quotas and global demand fluctuations.
U.S. Strategic Efforts: Challenges in Domestic Independence
Despite increased mining activity, the U.S. remains dependent on foreign refining and magnet production. While net import reliance for rare earth compounds and metals dropped to 80% (from >95% in previous years), the U.S. still lacks industrial-scale rare-earth refining, alloying, and magnet manufacturing capacity. Recycling remains limited, and strategic stockpiling efforts have only modestly increased, with potential acquisitions of neodymium-praseodymium oxide, NdFeB magnet blocks, and samarium-cobalt alloy in 2025.
The Path Forward–Industrial Policy and National Security
While the U.S. has increased employment in the rare earth sector to 570 workers, up from 450 in 2023, this is a fraction of what is needed to establish a fully integrated rare earth supply chain. Washington has taken steps to reduce reliance on China, but without aggressive investment in refining, separation technology, and magnet production, the U.S. will remain vulnerable. In 2025, policymakers must decide whether to rapidly scale domestic production or seek short-term trade agreements with China to secure access to these critical materials. The future of rare earth security is at a crossroads, and decisive action is needed to close the gap.
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