Yunnan Discovers a Super-Large Rare Earth Deposit

Highlights

• China Geological Survey discovers a 1.15-million-ton rare earth deposit in Yunnan’s Honghe region, with 470,000 tons of key medium-to-heavy rare earth elements.
• The deposit is strategically significant for high-tech industries, including:
  • Electric vehicles
  • Renewable energy
  • National defense technologies
• While promising, the discovery requires independent verification and raises geopolitical questions about China’s rare earth market control.

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According to China’s Worker’s Daily (opens in a new tab) reporter Zhao Lihao, the China Geological Survey under the Ministry of Natural Resources, with strong support from the Ministry of Finance, has discovered a super-large ion-adsorption type rare earth deposit in the Honghe region of Yunnan Province. The potential resource estimate reaches 1.15 million tons, including more than 470,000 tons of key rare earth elements such as praseodymium (Pr), neodymium (Nd), dysprosium (Dy), and terbium (Tb). This discovery marks a significant breakthrough in China’s exploration of rare ion-adsorption earth deposits since the first discovery in Jiangxi in 1969. The deposit is expected to become China’s largest medium-to-heavy rare earth mine, strengthening the country’s rare earth resource advantages and improving the rare earth industry supply chain. It also further consolidates China’s strategic dominance in medium and heavy rare earth resources.

The newly discovered deposit mainly consists of medium-to-heavy rare earth elements crucial for various applications, including electric vehicles, renewable energy, national defense, and other high-tech industries. These elements are essential raw materials for the development of cutting-edge technology.

This report claims the discovery of a massive 1.15-million-ton ion-adsorption rare earth deposit in Honghe, Yunnan, with a significant concentration of medium-to-heavy rare earth elements (REEs) such as dysprosium and terbium, which are critical for high-tech industries. If verified, this could substantially reinforce China’s control over the global rare earth supply, particularly for medium-to-heavy rare earths, which are scarcer than light REEs and vital for defense and energy applications.

The report comes from Worker’s Daily, a state-run publication, and cites the China Geological Survey (CGS), a legitimate government agency, with backing from the Ministry of Natural Resources and the Ministry of Finance, suggesting official credibility. However, China is strategically interested in announcing rare earth discoveries to reinforce its global supply chain dominance and deter foreign investment in alternative sources.  And state-run media should always be considered suspect.

Geologically, Yunnan is a plausible location for ion-adsorption rare earth deposits similar to those in Jiangxi, Guangdong, and Guangxi. The reported 1.15-million-ton deposit, including 470,000 tons of key REEs (Pr, Nd, Dy, Tb), would be among the largest globally. While this would significantly strengthen China’s rare earth supply, independent verification is needed to confirm the actual recoverable quantities.

Given China’s history of overstating or strategically timing rare earth announcements for geopolitical leverage, the lack of third-party validation raises questions about the true economic viability of the deposit. If accurate, this discovery would further pressure Western nations to accelerate their efforts in securing alternative rare earth sources in regions like the U.S., Australia, and Canada. But again, the West also needs to think of REEs as a system—upstream but also midstream and downstream excellence.

Regardless, the report is likely credible given the involvement of official Chinese agencies (state media aside), but independent verification is needed. The deposit’s actual economic viability, extraction feasibility, and impact on global rare earth markets remain uncertain. If confirmed, this discovery would likely reinforce China’s dominance in the rare earth sector, particularly for medium-to-heavy REEs, intensifying geopolitical concerns over supply chain security.