10 Countries Hold 99% of Global Rare Earth Reserves

Rare earth elements (REEs) are a group of 17 chemically similar metallic elements, including cerium, yttrium, and lanthanum. These elements are essential in modern technology, playing a critical role in the manufacture of various high-tech products, from smartphones and computers to electric vehicles and renewable energy technologies. The global distribution of rare earth reserves is highly uneven, with just a few countries holding the vast majority of these valuable resources.

1. China (44 Million Metric Tons): China's reserves are the largest globally. The country has been actively managing its rare earth resources, focusing on reducing illegal mining and establishing stockpiles. China's rare earths are essential for various industries, and the Bayan Obo mine in Inner Mongolia is the world’s largest rare earth element mine. Despite being the top producer, China has raised concerns about the depletion of its reserves and has been importing heavy rare earths from Myanmar​​​​.

2. Vietnam (22 Million Metric Tons): With significant reserves, Vietnam is emerging as a potential alternative to China in the rare earth market. Its production increased considerably in 2022, indicating a growing industry. Vietnam is unique in having a vertically integrated rare earth magnet supply chain outside of China​​​​.

3. Brazil (21 Million Metric Tons): Brazil, tied with Russia for third place in reserves, has been a minor producer. However, this is changing with the commissioning of the Pela Ema rare earths deposit, which will produce critical magnet rare earth elements. This development may position Brazil as a significant future player in the global rare earth market​​​​.

4. Russia (21 Million Metric Tons): Russia's reserves are substantial, and its production exceeded that of Brazil and Vietnam in 2022. The country has announced significant investments to compete in the global rare earth market, but geopolitical tensions, especially related to the Ukraine conflict, might impact its plans​​​​.

5. India (6.9 Million Metric Tons): India's reserves are primarily found in beach and sand mineral deposits. Despite its sizable reserves, India's production is relatively modest. However, the country has potential for growth in this sector​​​​.

6. Australia (4.2 Million Metric Tons): Australia has been increasingly active in the rare earth sector. With its substantial reserves, the country is well-positioned to play a significant role in the global supply chain, particularly given its stable geopolitical environment and existing mining infrastructure​​.

7. United States (2.3 Million Metric Tons): The U.S. has been focusing on reducing its dependency on imported rare earths. Its reserves, though smaller than the leading countries, are crucial for its strategic interests in technology and defense sectors​​.

8. Greenland (1.5 Million Metric Tons): Greenland's reserves have attracted global attention due to the geopolitical significance of the Arctic region. The region’s potential as a rare earth supplier is increasingly recognized​​. Greenland belongs to Denmark, the only major European country and member of the European Union to be one of the major players in rare earths.

9. Tanzania (890,000 Metric Tons): Tanzania's rare earth reserves, while smaller than the global leaders, hold significant potential. The country's strategic geographical location and the growing global demand for rare earth elements position it as an important player in the regional market. Tanzania's potential in the rare earth industry is closely watched by global investors and industry analysts, given the increasing importance of diversifying the global supply chain away from dominant producers like China.

10. Canada (830,000 Metric Tons): Canada's rare earth reserves are crucial for North American supply chains, especially given the country's stable political environment and established mining industry. While Canada's reserves are modest compared to global leaders, the country has been actively exploring and developing its rare earth resources. This effort is part of a broader strategy to reduce reliance on imports and to establish a more self-sufficient supply chain for critical minerals in North America. Canada's role in the global rare earth market is expected to grow, contributing to the diversity and security of the global supply of these essential elements.

The strategic importance of these ten countries in the global rare earth reserves cannot be overstated. The distribution of these reserves is pivotal not only for the high-tech and green technology sectors but also for the broader geopolitical and economic landscapes. Rare earth elements are integral to numerous modern technologies, including renewable energy systems, electric vehicles, smartphones, and advanced defense equipment. The countries holding these reserves, therefore, wield significant influence over global technological advancement and sustainable development.

The concentration of rare earth reserves in these few countries underscores the urgency for diversifying supply chains and exploring alternative sources. It highlights the potential vulnerabilities in the global market, where geopolitical tensions or supply disruptions in any of these countries can have far-reaching impacts. For instance, China's dominance in the market has raised concerns about supply security, prompting other countries to develop their own rare earth resources or seek alternative suppliers.

The environmental impact of rare earth mining and processing is a growing concern. The extraction and refining of these elements can lead to significant ecological damage if not managed responsibly. This necessitates a balance between meeting the growing demand for rare earths and ensuring sustainable and environmentally friendly practices in their extraction and processing.

As we move towards a more technology-driven and environmentally conscious world, the demand for rare earth elements is projected to soar. This will inevitably increase the strategic importance of these ten countries. It also presents an opportunity for international collaboration in research and development of more efficient recycling and substitution technologies for rare earth elements.