Rare Earth Industry Overview

Abstract

The rare earth elements (REEs) are a group of moderately abundant elements comprising the 15 lanthanides, scandium (Sc), and yttrium (Y). Most REE production has been from deposits where specific minerals (usually bastnaesite, loparite, monazite, and xenotime) or ores such as ion-adsorption clays are amenable to known industrial-scale physical and chemical separation techniques. The rare earth industry is complex and evolving with changing geographic sources of supply and shifting demand for specific REEs. Global mine production tripled from 2010 to 2022. New sources of supply have changed trade patterns for mineral concentrates, metals, and compounds. While China has remained the largest global producer, its imports have increased from 12 thousand metric tons (KMt) in 2010 to over 126 KMt in 2021. A few mine producers have emerged as established sources of supply, and interests in developing new alternative sources of supply are ongoing. Several factors have contributed to price volatility for rare earth materials including political tensions, shifts in demand patterns, and supply disruptions. Prices for rare earth materials peaked in 2011 following changes in China’s export quotas and political tensions between China and Japan. In subsequent years, prices for most rare earths decreased significantly but were influenced by rising or falling demand for specific applications such as permanent magnets and phosphors.