Global Rare Earth Reserves: Mapping Supply Concentration and Production Capacity Gaps

The outlook for rare earths remains robust, supported by accelerating demand from clean energy and advanced technology sectors. Yet a critical imbalance persists: nations with substantial reserves often lack corresponding production capacity. For instance, Brazil holds the world’s second-largest rare earth reserves by country at 21 million metric tons, but produced merely 20 MT in 2024. This disconnect between reserve wealth and extraction capability reshapes geopolitical dynamics and supply chain strategies.

Understanding Rare Earth Elements and Market Fundamentals

Rare earth metals comprise 17 naturally occurring elements: 15 from the lanthanide series, plus yttrium and scandium. These materials divide into “heavy” and “light” categories based on atomic weight, with heavy rare earths commanding premium prices for their applications in advanced magnets, wind turbines, and electric vehicles.

Global rare earth reserves total approximately 130 million metric tons. Annual production reached 390,000 MT in 2024, double the output from a decade ago when it barely exceeded 100,000 MT. This surge reflects intensifying competition for critical materials as nations prioritize energy transition and technological sovereignty.

The Eight Largest Reserve Holders

1. China Dominates With 44 Million Metric Tons

China’s rare earth reserves by country ranking places it far ahead at 44 million MT—roughly one-third of global supplies. The country manufactured 270,000 MT in 2024, commanding 69% of worldwide production. This dominance stems from deliberate state strategy: after declaring in 2012 that reserves were declining, Beijing implemented commercial and national stockpile programs while simultaneously cracking down on illicit mining operations.

Export restrictions imposed in 2010 triggered global supply panics, spurring competitors to develop alternatives. Recently, China banned technology exports for rare earth magnet production, escalating tech-sector competition with the United States. The nation increasingly sources heavy rare earths from Myanmar, where environmental protections lag behind Chinese standards.

2. Brazil Positions as the Secondary Reserve Power at 21 Million MT

Brazil’s rare earth reserves by country metrics show it possesses 21 million MT despite minimal historical production. This is changing dramatically. Serra Verde commenced Phase 1 operations at its Pela Ema deposit in early 2024, targeting 5,000 MT annual output by 2026. Pela Ema represents one of four global ionic clay deposits capable of producing all four critical magnet elements—neodymium, praseodymium, terbium, and dysprosium—outside China’s borders.

3. India’s 6.9 Million MT Reflects Underutilized Potential

India’s rare earth reserves by country standing reaches 6.9 million MT, with 2024 production at 2,900 MT. The nation hosts nearly 35% of planetary beach and sand mineral deposits, rich sources for rare earth extraction. Government initiatives launched in late 2023 prioritize rare earths research, and Trafalgar announced October 2024 plans for India’s first integrated rare earth metals and magnet manufacturing facility.

4. Australia at 5.7 Million MT: Emerging Non-Chinese Leader

Australia positioned fourth globally with 5.7 million MT in reserves, producing 13,000 MT during 2024. Lynas Rare Earths operates the Mount Weld mine and Malaysia refining facility, functioning as the world’s premier non-Chinese supplier. A 2025 expansion targets capacity increases, while the new Kalgoorlie processing plant commenced mid-2024 production. Hastings Technology Metals’ Yangibana project, shovel-ready since recent offtake agreements, expects 37,000 MT annual concentrate output with first deliveries in Q4 2026.

5. Russia: 3.8 Million MT Despite Geopolitical Headwinds

Russia’s rare earth reserves by country data shows 3.8 million MT following a significant 2024 downward revision from 10 million MT previously reported. Production maintained 2,500 MT annually. Geopolitical tensions have complicated development plans; the 2020 announcement of US$1.5 billion investment to compete with China appears shelved amid military commitments.

6. Vietnam’s 3.5 Million MT Under Scrutiny

Vietnam’s rare earth reserves by country accounting underwent substantial revision downward to 3.5 million MT from 22 million MT the previous year. Production stalled at 300 MT, far short of the government’s 2030 target of 2.02 million MT. These setbacks followed October 2023 arrests of six rare earths executives, including Vietnam Rare Earth’s chairman, for alleged value-added tax fraud in trading operations.

7. United States: 1.9 Million MT Amid Domestic Revitalization

The United States paradoxically ranks seventh in reserves with 1.9 million MT while securing second place in 2024 production at 45,000 MT. Only California’s Mountain Pass mine, operated by MP Materials, currently extracts domestically. MP Materials develops Stage III downstream capabilities at its Fort Worth facility, converting rare earth oxide into magnets and precursor materials. The Biden Administration earmarked US$17.5 million in April 2024 for processing technology development utilizing coal and coal by-products.

8. Greenland: 1.5 Million MT With Development Challenges

Greenland commands 1.5 million MT in reserves across two major projects—Tanbreez and Kvanefjeld—though currently produces zero output. Critical Metals completed its Tanbreez acquisition in July 2024, commencing September drilling to refine resource modeling. Energy Transition Minerals faced license revocation for Kvanefjeld over uranium exploitation concerns; its revised plan excluding uranium faced rejection in September 2023. As of October 2024, the company awaits court appeal decisions. Recent U.S. political developments have elevated Greenland’s strategic profile, though Danish and Greenlandic leaders firmly reject sovereignty considerations.

Why Rare Earth Extraction Presents Complex Challenges

Finding economically viable deposits proves extremely difficult. Heavy rare earths occur in fewer orebodies than light variants, compounding supply constraints. The separation process demands extraordinary precision: rare earth elements possess similar chemical properties, necessitating lengthy solvent extraction cycles spanning hundreds to thousands of iterations for high-purity results.

Environmental consequences compound difficulties. Ore containing rare earths frequently harbors thorium and uranium, generating radioactive waste streams. In-situ leaching operations in Southern China and Northern Myanmar have contaminated groundwater and surface water sources, devastated local ecosystems, and triggered over 100 documented landslides in China’s Ganzhou region. Myanmar’s mountains bear particularly severe damage, with 2,700 illegal collection pools covering an area equivalent to Singapore’s size identified as of mid-2022.

Technology Applications Driving Demand

Rare earth magnets incorporating neodymium and praseodymium power aircraft engines and renewable installations. Dysprosium and samarium enhance magnet performance. Consumer electronics from smartphones to laptops depend on rare earth components. Phosphor rare earths including europium, terbium, and yttrium illuminate display technologies and lighting systems. These diverse applications ensure sustained demand as global energy infrastructure transitions toward sustainability.

Future Outlook: Supply Chain Resilience Building

The disconnect between rare earth reserves by country and productive capacity will intensify strategic competition. Nations accelerating downstream processing capabilities—like Brazil’s Serra Verde and Australia’s integrated operations—represent supply chain diversification efforts. The European Union’s Critical Raw Materials Act catalyzes development of Europe’s Per Geijer deposit in Sweden, holding over 1 million MT of oxide resources. The Fennoscandian Shield countries including Norway and Finland host substantial deposits, offering geographic alternatives to Asian concentration.

Total global production must expand significantly to meet projected 2030 demand. With only 130 million MT in reserves supporting aggressive consumption growth, efficient recycling and technological innovation in extraction methods become equally critical as new mining development.