Image Source: Pixabay

Introduction

Rare earths have become a permanent fixture on critical minerals lists around the world due to their pivotal role in permanent magnets, new energy and technology. Rare earths are critical in electric vehicles, renewable energy, military applications and high-tech industries. Demand for rare earth metals such as neodymium, dysprosium, praseodymium and yttrium is increasing alongside technological advancements, particularly as artificial intelligence technology gains further importance.

About Rare Earth Metals

As described  in Wikiperdia, the rare-earth elements (REE), also called rare-earth metals, or rare earths, are a set of 17 nearly indistinguishable lustrous silvery-white soft heavy metals (see list here). The 15 lanthanides (or lanthanoids), along with scandium and yttrium, are usually included as rare earths (scandium and yttrium are considered rare-earth elements because they tend to occur in the same ore deposits as the lanthanides and exhibit similar chemical properties, but have different electrical and magnetic properties). 

Those with low atomic numbers are referred to as light rare-earth elements (LREE), those with high atomic numbers are the heavy rare-earth elements (HREE), and those that fall in between are typically referred to as the middle rare-earth elements (MREE). Commonly, rare-earth elements with atomic numbers 57 to 61 (lanthanum to promethium) are classified as light and those with atomic numbers 62 and greater are classified as heavy rare-earth elements. Large ore bodies of LREE are known around the world and are being exploited. Ore bodies for HREE are more rare, smaller, and less concentrated. Most of the current supply of HREE originates in the "ion-absorption clay" ores of Southern China.

Rare-earth elements or minerals are distinct from minerals or materials described as critical minerals or raw materials, which refers to materials that are considered to be of strategic or economic importance to a country. There is no single list, but individual governments compile lists of materials that are critical for their own economies. Compounds containing rare-earths have diverse applications in electrical and electronic components, lasers, glass, magnetic materials, and industrial processes.

The term "rare" in "rare-earth" is a misnomer because they are not actually scarce (they are relatively plentiful in the entire earth's crust - cerium, for example, is the 25th-most-abundant element which is more abundant than copper), but rather because they are only found in compounds, not as pure metals, or perhaps because they were considered exotic at the time of their discovery.

The "earth" part refers to an old term for minerals that dissolve in acids and thus are stable to oxidation. They are never found in highly concentrated form, usually being mixed together with one another, or with radioactive elements such as uranium and thorium, and can only be separated from other materials or one another with difficulty so to obtain rare earths at usable purity requires processing enormous amounts of raw ore at great expense.

Rare Earths Production By Country

With that in mind, it’s worth being aware of rare earths production by country. Here’s a look at the 10 countries that mined the most rare earths in 2024, as per data from US Geological Survey (USGS). Source

1. China; 270 tonnes (metric tons)
   • As mentioned, China has dominated rare earths production for quite some time. While China dominates global production of the vast majority of the 17 different rare earth elements, its output is heavily concentrated in light rare earths, specifically the magnet rare earths neodymium and praseodymium.
   • The largest rare earth mining company in the world is China Northern Rare Earth High-Tech (SHA:600111), which owns the prolific Bayan Obo rare earth mining complex in Inner Mongolia.
2. USA: 45 tonnes
   • In 2024, 70 percent of US rare earths imports originated from China. While the United States is the second largest producer of rare earths, it trails China significantly, and its known rare earth reserves make up just 2 percent of total global reserves.
   • Rare earths supply in the US currently comes only from the Mountain Pass mine in California, which is owned by MP Materials (NYSE:MP). Mountain Pass is producing high-purity neodymium and praseodymium (NdPr) oxide, a key material for high-strength neodymium iron boron (NdFeB) magnets.
3. Myanmar: 31 tonnes
   • China, who shares a border with Myanmar, obtains 70 percent of its medium to heavy rare earths feedstock from its neighbor, including dysprosium and terbium. Myanmar's rare earths production, and hence China's feedstock supplies, experienced further disruptions in late 2024. Myanmar’s Kachin Independence Army seized two towns in Kachin state, near China’s Yunnan province, which are critical suppliers of rare earth oxides to China. This includes Panwa, a key rare earths mining hub.
4. Australia: 13 tonnes
   •  The country holds the world's fourth largest rare earths reserves and is poised to increase its output.
   • The leading producer of rare earths outside of China, Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF) operates the Mount Weld mine and concentration plant in Western Australia. Mount Weld ranks among the world's top rare earth mines. Lynas is slated to complete its expansion project to boost annual production of NdPr products to 12,000 MT in 2025.
   • Australian company Northern Minerals (ASX:NTU,OTC Pink:NOURF) is undertaking a feasibility study for its Browns Range mining and process plant; the study is due for completion in Q4 2025. Browns Range's main products will be heavy rare earths terbium and dysprosium.
5. Nigeria; 13 tonnes
   • As Nigeria's rare earths mining industry is still in the early stage of its development, little is known about the extent of its rare earths reserves at this time.
   • In late 2024, the government of Nigeria signed a memorandum of understanding with the government of France to jointly develop critical minerals including rare earths.
6. Thailand; 13 tonnes
   • While there's not much information available on Thailand's rare earth industry, the country is a major source of rare earth imports for China and Neo Performance Materials' (TSX:NEO) subsidiary Neo Magnequench operates a rare earth magnetic materials manufacturing facility in Korat, Thailand.
7. India; 2,900 tonnes
   • The country's output represents less than 1 percent of global rare earths supply. India’s rare earths production is far below its potential, considering the nation holds almost 35 percent of the world’s total beach sand mineral deposits, which are significant sources of rare earths.
8. Russia: 2,500 tonnes
   •  In terms of global rare earths reserves, Russia ranks fifth.
   • Russia has reportedly reduced mining taxes and offered discounted loans to investors in nearly a dozen projects intended to increase the nation’s share of global rare earths production from the current 1.3 percent to 10 percent by 2030.
9. Madagascar; 2,000 tonnes
   • The country's Ampasindava peninsula is reportedly home to 628 million metric tons of ionic clays with a significant concentration of rare earths, particularly dysprosium, neodymium and europium. It's considered one of the largest rare earth deposits outside China. Whether or not it is ever developed is up in the air.
   • The declining in rare earths production in recent years is due in large part to increasing opposition to rare earths mining on the part of farmers who are strongly against mining activity in their communities.
10. Vietnam: 300 tonnes
    • Vietnam holds the world's sixth largest known rare earths reserves, including several rare earth deposits against its northwestern border with China and along its eastern coastline.
    • The country's government is interested in building its clean energy capacity, including solar panels, and is said to be looking to produce more rare earths for its supply chain for that reason. It has set a goal of extracting and processing 2 million metric tons of rare earths per year by 2030.

The 8 Countries With The Largest Rare Earth Reserves

The top eight countries in terms of REE reserves, as per the US Geological Survey's February 2025 report on rare earth elements, are as follows:

1. China: 44 million tonnes
2. Brazil: 21 million tonnes
3. India: 6.9 million tonnes
4. Australia: 5.7 million tonnes
5. Russia: 3.8 million tonnes
6. Vietnam: 3.5 million tonnes
7. US: 1.9 million tonnes
8. Greenland (Denmark): 1.5 million tonnes
   • In 2010, a large deposit of rare-earth minerals was discovered in Kvanefjeld in southern Greenland (an autonomous territory of Denmark) where pre-feasibility drilling confirmed significant quantities of black lujavrite, which contains about 1% rare-earth oxides (REO).
   • The European Union has urged Greenland to restrict Chinese development of rare-earth projects there but, to date, it has no plans to impose such restrictions.
   • Many Danish politicians have expressed concerns that other nations, including China, could gain influence in thinly populated Greenland, given the number of foreign workers and investment that could come from Chinese companies being involved there.

The Biggest Rare Earths Stocks

To help paint a better picture of the REE landscape, the Investing News Network has compiled a list of the biggest rare earths stocks by market cap on U.S., Canadian and Australian stock exchanges. Source 

U.S. Rare Earths Stocks

The nation has vast rare earths reserves and is the second largest global REE producer thanks to its sole operating rare earth mine, Mountain Pass. However, it currently lacks sufficient processing facilities. American rare earths companies are working to address this imbalance, presenting investment opportunities for those looking to capitalize on the market's growth potential. The three largest US rare earths stocks by market cap are below:

1. MP Materials (NYSE: MP): Market cap: US$12.8 billion
   • MP Materials, the largest rare earths producer in North America, focuses on high-purity separated neodymium and praseodymium (NdPr) oxide, heavy rare earths concentrate, lanthanum and cerium oxides and carbonates. In Q3 2023, MP Materials began producing separated NdPr.
   • In April 2024, MP Materials was awarded US$58.5 million under the Section 48C tax credit to build the U.S.’s first fully integrated rare earth magnet plant and began making NdFeB magnets in January, with first deliveries due by year-end.
2. Energy Fuels (NYSE: UUUU,TSX:EFR): Market cap: US$4.5 billion
   • Energy Fuels operates key uranium production centers, including the White Mesa mill in Utah and the Nichols Ranch and Alta Mesa projects in Wyoming and Texas.
   • The company finished construction of Phase 1 REE separation infrastructure at White Mesa in early 2024, and in June achieved pilot-scale production of heavy rare earth oxides at its White Mesa mill and aims for commercial output by late 2026.
   • In late August, Energy Fuels produced its first kilogram of 99.9 percent pure dysprosium oxide at pilot scale from White Mesa. Using monazite sourced from Florida and Georgia, Energy Fuels now plans to produce 2 kilograms weekly.
3. NioCorp Developments (Nasdaq: NB): Market cap: US$950 million
   • NioCorp Developments is advancing its Elk Creek project in Nebraska, which features North America's highest-grade niobium deposit under development, with significant scandium production capacity. Elk Creek is fully permitted for construction and is working to secure financing to move the project forward, and the US Export-Import Bank advanced its application for financing to its next stage of due diligence in February.

Canadian Rare Earths Stocks

Aclara Resources, Mkango Resources and Ucore Rare Metals are the three largest Canada-listed rare earth stocks by market cap as outlined below:

1. Aclara Resources (Pink: ARAAF): Market cap: US$471 million
   • Aclara Resources is advancing its Penco Module project in Chile, characterized by ionic clays abundant in heavy rare earths, and its Carina Module project in Brazil.
2. Mkango Resources (Pink: MKNGF): Market cap: US$263 million
   • Mkango Resources is advancing as a producer of recycled rare earth magnets, alloys and oxides, through its 79.4 percent stake in Maginito with partner CoTec Holdings (TSXV:CTH,OTCQB:CTHCF).
   • Mkango’s assets include Malawi’s Songwe Hill project, targeting neodymium, praseodymium, dysprosium and terbium, and the Pulawy rare earths separation project in Poland, alongside a broader exploration portfolio in Malawi.
3. Ucore Rare Metals (TSXV: UCU): Market cap: C$791 million
   • Ucore Rare Metals owns the Bokan-Dotson Ridge rare earth project in Alaska and is developing a strategic metals complex for processing heavy and light rare earth elements in Louisiana, US.

Australian Rare Earths Stocks

Australia ranks among the globe's top rare earths producers and possesses the fourth largest rare earths reserves. The nation is notable for hosting the largest supplier of rare earths outside of China.

1.  Lynas Rare Earths (ASX: LYC): Market cap: AU$19.9 billion
   • Lynas Rare Earths is the leading separated rare earths producer outside of China, with operations in Australia and Malaysia
2. Iluka Resources (ASX: ILU): Market cap: AU$3.2 billion
   • Iluka Resources is advancing its Eneabba rare earths refinery in Western Australia with backing from the Australian government,
3. Arafura Resources (ASX: ARU): Market cap: AU$468 million
   • Arafura Resources has secured government funding to advance its Nolans rare earths project in the Northern Territory which is shovel ready and envisioned as a vertically integrated operation with on-site processing facilities.

Conclusion

Investors are watching closely to see which rare earth companies are best positioned to capture the opportunity.