Rare Earth Exchanges

The World’s Largest Rare Earth Reserves: Key Players and What’s Next

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Highlights

  • China dominates rare earth production with 44 million metric tons of reserves.
  • Emerging countries like Brazil, India, and Vietnam could disrupt the global supply chain.
  • Geopolitical tensions and the shift towards clean energy are driving increased demand and strategic competition for rare earth elements.
  • Investment, production capacity, and environmental considerations will determine the future of rare earth mineral dominance in the next decade.

Rare earth elements (REEs) are critical to modern technologies, from electric vehicles and wind turbines to defense systems and consumer electronics. With growing demand and increasing geopolitical tensions, the distribution of rare earth reserves is more important than ever. China dominates both production and reserves, but emerging players like Brazil, India, and Vietnam could shake up the global supply chain.

Top 8 Countries with the Most Rare Earth Reserves as reported recently in Investing News Network (opens in a new tab).

  1. China – 44 million metric tons (MT)
  • The world leader in both reserves and production, China produced 270,000 MT of REEs in 2024, far surpassing any other nation.
  • The government has been stockpiling reserves, tightening export controls, and cracking down on illegal mining, while also importing heavy rare earths from Myanmar.
  • China’s 2023 ban on rare earth magnet technology exports heightened trade tensions with the U.S.
  1. Brazil – 21 million MT
  • Despite its massive reserves, Brazil produced only 20 MT in 2024, indicating untapped potential.
  • The Pela Ema deposit, one of the world’s largest ionic clay reserves, started production in 2024 and is expected to produce 5,000 MT annually by 2026.
  • Brazil could become a serious competitor if investment and production increase.
  1. India – 6.9 million MT
  • India’s reserves are significant, but annual production remains low (2,900 MT in 2024).
  • The country is implementing new policies to boost REE extraction and refining, including its first rare earth magnet plant.
  1. Australia – 5.7 million MT
  • Home to Lynas Rare Earths, the world’s largest non-Chinese rare earth producer.
  • Mt Weld mine expansion and the new Kalgoorlie processing plant will increase Australia’s refining capacity, reducing reliance on China.
  1. Russia – 3.8 million MT
  • REE reserves were revised down from 10 million MT in 2023, likely due to data reclassification or depletion.
  • With Western sanctions and the Ukraine war straining resources, Russia’s rare earth ambitions may be stalled.
  1. Vietnam – 3.5 million MT
  • Vietnam was expected to produce 2 million MT by 2030, but arrests of key industry executives in 2023 may have disrupted plans.
  • The country remains a strategic supplier to China but faces regulatory challenges.
  1. United States – 1.9 million MT
  • The second-largest producer (45,000 MT in 2024), but reserves are significantly lower than China’s.
  • Mountain Pass (MP Materials) is the only active rare earth mine in the U.S., and the government is investing heavily in developing its domestic supply chain.
  1. Greenland – 1.5 million MT
  • The area is home to major undeveloped REE deposits (Tanbreez and Kvanefjeld), but political and environmental challenges have stalled mining projects.
  • Greenland rejected U.S. interest in purchasing its resources, further complicating supply chain politics.

Key Questions & Challenges

  • Brazil, India, and Vietnam have massive reserves but little production—will they attract the investment needed to compete?
  • Can the U.S. and Australia break China’s rare earth monopoly? They are making progress with new refining projects, but China still controls processing and magnet manufacturing.
  • Environmental concerns loom large. Mining rare earths often creates radioactive waste, as in China and Myanmar. Will new players develop cleaner methods?

The Bigger Picture

With the world shifting to clean energy and high-tech manufacturing, demand for rare earths will only increase. While China still controls the supply chain, new producers like Brazil, Australia, and Vietnam could change the game if they scale up production and refining capabilities. The battle for rare earth dominance is far from over, and the next decade will determine whether the world can break its dependence on China’s grip on these critical minerals.

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