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Researched by Industrial Info Resources (Sugar Land, Texas)--For decades, China has dominated the global supply of rare earth elements (REEs), a group of 17 elements that are critical to modern technology, renewable energy and defense systems. With almost 60-70% of the market share in REEs, China's commanding position is a growing concern for countries vulnerable to supply disruptions. This dominance is prompting nations outside of China to ramp up investments in rare earth ore mining to strengthen their domestic supplies while reducing reliance on China.
Contrary to their name, REEs are not actually rare but exist abundantly in the earth's crust, almost as abundantly as copper and tin. However, these elements are dispersed throughout the crust often mixed with other elements, making their extraction process challenging and expensive in usable form.
Known for their unique catalytic, metallurgical, electrical, luminescent and magnetic properties, REEs are essentially used in electronics such as cellular phones and computer hard drives, in clean technologies like hybrid and electric vehicles, wind turbines, and in the defense sector for guided missiles and radar systems.
While China is the largest producer of rare earth elements, the U.S. holds a share of around 14% and Australia produces 6%. To further tighten its grip on REEs China has recently banned the export of rare earth technology to extract and separate rare earths, as reported by Reuters. As observed in the past as well, China restricted its exports to Japan in 2010 amid tensions over disputed islands prompting Japan to cut down on its imports from China by nearly 60% in eight years.
The global demand for REEs is projected to grow significantly by 400-600% over the next few decades. REEs such as neodymium and praseodymium, which are used to strengthen wind turbines, and dysprosium and terbium, used to prevent demagnetization in various technologies, are likely to witness high demand growth. By 2050, the global demand for neodymium is estimated to increase by at least 48%, surpassing the already predicted supply for 2030 by 250%. Similarly, praseodymium and terbium may also experience significant supply shortages.
Australia, Canada, the European Union and the United States have set out policies and support packages for their critical minerals sectors, including rare earth, to boost domestic production to reduce exports from China.
Industrial Info is tracking more than 140 projects worth US$18.47 billion geared toward rare earth ore mining. The majority of the spending worth US$11 billion is attributed toward grassroot projects, while US$3.28 billion is going toward unit additions and US$2.82 billion toward plant expansions.
By region, North America dominates the market with US$6.76 billion worth of investments contributing a share of 36% to the global spending. Oceania follows closely with investments worth US$4.90 billion. Other notable regions with significant spending are Africa, South America and Europe, with investments worth US$2.74 billion, US$2.10 billion and US$1.45 billion, respectively.
Significant spending of US$1 billion is being driven by Torngat Metals Limited (Montreal, Quebec) with four projects in the pipeline, all in Quebec. The company's planned projects include an above-ground mine with an initial production of 11,500 tons per year to recover various rare earth elements. Construction is expected to begin in 2027 and be completed in 2029. Subscribers to Industrial Info's Global Market Intelligence Metals & Minerals Project Database can click here to learn more about the project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Contrary to their name, REEs are not actually rare but exist abundantly in the earth's crust, almost as abundantly as copper and tin. However, these elements are dispersed throughout the crust often mixed with other elements, making their extraction process challenging and expensive in usable form.
Known for their unique catalytic, metallurgical, electrical, luminescent and magnetic properties, REEs are essentially used in electronics such as cellular phones and computer hard drives, in clean technologies like hybrid and electric vehicles, wind turbines, and in the defense sector for guided missiles and radar systems.
While China is the largest producer of rare earth elements, the U.S. holds a share of around 14% and Australia produces 6%. To further tighten its grip on REEs China has recently banned the export of rare earth technology to extract and separate rare earths, as reported by Reuters. As observed in the past as well, China restricted its exports to Japan in 2010 amid tensions over disputed islands prompting Japan to cut down on its imports from China by nearly 60% in eight years.
The global demand for REEs is projected to grow significantly by 400-600% over the next few decades. REEs such as neodymium and praseodymium, which are used to strengthen wind turbines, and dysprosium and terbium, used to prevent demagnetization in various technologies, are likely to witness high demand growth. By 2050, the global demand for neodymium is estimated to increase by at least 48%, surpassing the already predicted supply for 2030 by 250%. Similarly, praseodymium and terbium may also experience significant supply shortages.
Australia, Canada, the European Union and the United States have set out policies and support packages for their critical minerals sectors, including rare earth, to boost domestic production to reduce exports from China.
Industrial Info is tracking more than 140 projects worth US$18.47 billion geared toward rare earth ore mining. The majority of the spending worth US$11 billion is attributed toward grassroot projects, while US$3.28 billion is going toward unit additions and US$2.82 billion toward plant expansions.
By region, North America dominates the market with US$6.76 billion worth of investments contributing a share of 36% to the global spending. Oceania follows closely with investments worth US$4.90 billion. Other notable regions with significant spending are Africa, South America and Europe, with investments worth US$2.74 billion, US$2.10 billion and US$1.45 billion, respectively.
Significant spending of US$1 billion is being driven by Torngat Metals Limited (Montreal, Quebec) with four projects in the pipeline, all in Quebec. The company's planned projects include an above-ground mine with an initial production of 11,500 tons per year to recover various rare earth elements. Construction is expected to begin in 2027 and be completed in 2029. Subscribers to Industrial Info's Global Market Intelligence Metals & Minerals Project Database can click here to learn more about the project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
