The global rare earth industry is a complex landscape dominated by China, which has created an urgent need for diversification of the global supply chain. The industry faces challenges, but its future depends on innovation, sustainable mining and international cooperation to ensure the secure supply of these essential elements.
It is expected that by 2023, global rare earth mine production will reach 350,000 tons of rare earth oxide (REO) equivalent. China currently dominates global rare earth production, accounting for more than 69% of global rare earth production that year. This dominance is not limited to mining, as China also processes nearly 90% of the world's rare earth elements. While China's lower production costs and advanced refining capabilities have contributed to this dominance, its production quotas and export restrictions have raised concerns.
Recognizing the risks of over-reliance on China, countries are diversifying their supply chains. The United States, which is the second largest producer and will account for 12.3% of global production by 2023, is leading the effort and the reopening of the Pass Mountain mine is an important step. Other countries, such as Madagascar and Uganda, are also exploring for their own reserves, aiming to challenge China's monopoly. However, competing with China's low-cost production and mature supply chain remains a significant obstacle.
Myanmar is the world's third largest rare earth country and will account for 10.9% of global production by 2023. However, Myanmar’s rare earths industry is beset by controversy, with a large portion of output coming from unregulated, small-scale miners linked to armed militia groups. These operations often ignore environmental regulations and lack adequate remediation plans. Other major producers include Australia, Thailand and India; together they will account for 8% of global production by 2023.
Australia, which has large reserves, is developing its processing capabilities. Lynas is a well-known Australian company focused on high-quality, differentiated rare earth products and expanded downstream processing. Other Australian companies, such as Northern Minerals and Arafura Resources, are targeting high-value rare earth elements such as dysprosium and terbium. Thailand plays a niche role in downstream processing, while India, despite its huge reserves, faces challenges in mining, environmental regulations and downstream development.
Ensuring a stable and sustainable supply of rare earths is critical to future technological progress and economic growth. This requires a multifaceted approach, including:
Supply chain diversification: Reduce reliance on a single source of supply through investment in domestic production and partnerships with other countries.
Promoting sustainable mining practices: minimizing environmental impact and ensuring responsible sourcing of raw materials.
Develop innovative technologies: Improve extraction, separation and recovery processes to increase efficiency and reduce costs.
"China Now Controls More than 69% of Global Rare Earth Production" was originally created and published by Mining Technology, a brand of GlobalData.
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