Rare earth elements (REEs) are the unsung heroes behind today’s most advanced technologies—powering everything from EV motors and wind turbines to smartphones and military systems. While global demand continues to rise, actual production and geographic distribution of rare earths reveal a complex and uneven landscape.

Production: China Dominates Output

According to data from the U.S. Geological Survey (USGS) and multiple mining industry reports, China remains the dominant force in rare earth production, accounting for over 60% of global output as of 2024. The United States ranks second with roughly 13%, followed by Myanmar, Australia, and Russia—each contributing between 5% and 9%.

This production dominance stems not just from China’s resource base, but from decades of targeted industrial policy and historically more lenient environmental regulations, which allowed for rapid scaling of extraction and refining capacity.

Distribution: Resources Are More Spread Out Than You Think

Interestingly, China’s share of global rare earth reserves is closer to 36%, suggesting that production strength doesn’t necessarily equate to resource monopoly. In fact, countries like Brazil, Vietnam, India, and Russia hold significant reserves that remain underdeveloped due to environmental restrictions, infrastructure challenges, or political factors.

Emerging regions in Africa—such as Tanzania, Malawi, and Namibia—are increasingly seen as strategic alternatives for future supply diversification. Although their current output is limited, exploration projects backed by foreign investors are underway.

Strategic Implications

This disconnect between where rare earths are found and where they’re processed has raised national security and supply chain concerns. Countries like the U.S., Australia, and members of the EU are investing in local refining capabilities and forming partnerships to reduce reliance on Chinese supply.

At the same time, environmental regulations are tightening globally, pushing up the cost of new mining and processing operations. As a result, the future of rare earths is not just about geology—it’s a geopolitical and regulatory puzzle with major economic stakes.

Disclaimer: This content is intended to share publicly available industry insights for informational purposes only. It does not constitute legal, financial, or strategic advice. Please consult a qualified professional or attorney before making any decisions based on this information.