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Rare Earths & Critical Minerals

China Dependency: 87%

The most concentrated supply chain in commodities. China controls mining through magnets. EV and wind turbine growth is driving structural deficits in magnet rare earths.

China Processing
87%
of global separation
China Magnets
90%
of NdFeB production
Non-China Pipeline
76.4 kt/yr
7 projects
Investment
$6.3B
non-China capex
EV Magnet Growth
+22%/yr
fastest RE demand driver
Elements in Deficit
4/7
Nd, Pr, Dy, Tb
NdFeB Recycling
~1-2%
current recycling rate
2030 Target
~10-15%
EU CRM Act mandate

Live RE Prices

Macro Overlay

Miner / Metal Ratios

MP Materials / REMX (MP/REMX)

REMX / NdPr Proxy

Supply Chain Concentration

Critical Risk
Mining
69%China

China ~69%, USA (Mountain Pass) ~12%, Myanmar ~8%, Australia (Mt Weld) ~7%. Myanmar supply is artisanal, high-risk — flows through China for processing.

Separation & Processing
87%China

Lynas operates the only non-Chinese separation plant at scale (LAMP, Malaysia + Kalgoorlie, Australia). MP Materials sending concentrate to China for processing (building US capability).

Oxide Refining
87%China

Converting separated rare earth carbonates into high-purity oxides. Virtually no capacity in Europe. Japan imports oxide for magnet production.

Metal & Alloy Production
92%China

Reducing oxides to metals (electrolysis/metallothermic). This is the critical bottleneck — almost no Western capacity. Japan (TDK, Shin-Etsu) has small domestic metal production.

NdFeB Magnet Production
90%China

Sintered NdFeB magnets for EVs, wind turbines, electronics. Japan (Proterial/Hitachi Metals, TDK) ~5%. EU has near-zero production. US: zero.

The Balancing Problem

Mining one element means mining all of them. Ore content vs. market demand creates structural surpluses (La, Ce) and deficits (Nd, Dy, Tb).

Cerium
3.20x
surplus
Lanthanum
2.80x
surplus
Neodymium
0.85x
deficit
Praseodymium
0.90x
deficit
Dysprosium
0.70x
deficit
Terbium
0.60x
deficit
Others
1.50x
surplus

Value Concentration Curve

Derived

Lorenz curve showing the mismatch between ore content and economic value across rare earth elements.

Gini Coefficient
0.63
1.0 = perfect inequality

75% of ore content produces only 10% of value

1 Tonne REO Breakdown
Cerium
500kg5.4%
Lanthanum
250kg4.1%
Neodymium
150kg65.2%
Praseodymium
50kg20.4%
Others
49kg1.3%
Dysprosium
1kg1.9%
Terbium
0kg1.6%

Rare Earth Price History ($/kg, annual avg)

2010Pre-crisis. China ~97% of supply.$35
2011China export quota crisis. Prices spike 7-15x. WTO challenge filed.$250
2012Demand destruction + stockpile releases. Thrifting begins.$95
2015Post-WTO ruling. China removes quotas. Oversupply.$38
2018Trade war fears. Steady state pricing.$42
2020COVID recovery + EV adoption acceleration.$45
2021EV demand surge. NdPr doubles. Myanmar disruptions.$105
2022Peak pricing. China quota increases dampen rally.$95
2023Correction. Slower EV growth in China. Destocking.$58
2024Stabilization. China export controls on processing tech.$55
2025Recovery. Non-China projects advancing. Geopolitical premium.$65

Global RE Production (2023)

China
240k t
67% share
United States
43k t
12% share
Myanmar
38k t
11% share
Australia
18k t
5% share

Global RE Trade Flows

NdFeB Magnet Trade (HS 8505.11)

China exports ~85% of global NdFeB magnets|Avg implied price: ~$21/kg

RE Patent Filings (Innovation Signal)

CPC codes: C01F17 (RE compounds), H01F1/055 (RE magnets), C22B59 (RE extraction). Source: USPTO PatentsView.

MP Materials Realized RE Pricing

SEC EDGAR

MP Materials (NYSE: MP) — the only scaled non-China RE mine. Realized pricing from 10-K/10-Q SEC filings.

Global REE Deposits (45)

producing (12)
development (11)
exploration (13)
dormant (9)
Bayan Obo (China) — producing, carbonatite, 8000 kt REOMountain Pass (USA) — producing, carbonatite, 1360 kt REOMt Weld (Australia) — producing, carbonatite, 2000 kt REOGanzhou (cluster) (China) — producing, ion-adsorption, 8000 kt REOMianning (China) — producing, carbonatite, 2900 kt REOWeishan (China) — producing, carbonatite, 1200 kt REOKachin State (cluster) (Myanmar) — producing, ion-adsorption, 3000 kt REOMaoniuping (China) — producing, carbonatite, 2800 kt REOZudong (China) — producing, ion-adsorption, 500 kt REOLovozero (Russia) — producing, alkaline, 4000 kt REODong Pao (Vietnam) — producing, carbonatite, 1100 kt REOChavara (India) — producing, placer, 320 kt REONolans Bore (Australia) — development, carbonatite, 560 kt REOBrowns Range (Australia) — development, other, 28 kt REONorra Kärr (Sweden) — development, alkaline, 580 kt REORound Top (USA) — development, other, 860 kt REOBear Lodge (USA) — development, carbonatite, 480 kt REOSteenkampskraal (South Africa) — development, other, 170 kt REOAraxá (Brazil) — development, carbonatite, 990 kt REONgualla (Tanzania) — development, carbonatite, 887 kt REOSongwe Hill (Malawi) — development, carbonatite, 410 kt REOSerra Verde (Brazil) — development, ion-adsorption, 580 kt REODubbo (Toongi) (Australia) — development, alkaline, 790 kt REOStrange Lake (Canada) — exploration, alkaline, 2900 kt REOKvanefjeld (Greenland) — dormant, alkaline, 6000 kt REOWicheeda (Canada) — exploration, carbonatite, 1210 kt REOAshram (Canada) — exploration, carbonatite, 2800 kt REOMontviel (Canada) — exploration, carbonatite, 440 kt REOLofdal (Namibia) — exploration, carbonatite, 55 kt REOYangibana (Australia) — exploration, carbonatite, 190 kt REOElk Creek (USA) — exploration, carbonatite, 620 kt REOPele Mountain (Canada) — exploration, other, 250 kt REOZandkopsdrift (South Africa) — exploration, carbonatite, 870 kt REOMakuutu (Uganda) — exploration, ion-adsorption, 320 kt REOXiluvo (Mozambique) — exploration, carbonatite, 340 kt REOTanbreez (Greenland) — exploration, alkaline, 4300 kt REONiobec (Canada) — exploration, carbonatite, 1200 kt REOPitinga (Brazil) — dormant, other, 180 kt REOHoidas Lake (Canada) — dormant, other, 120 kt REOThor Lake (Canada) — dormant, alkaline, 1800 kt REOMrima Hill (Kenya) — dormant, carbonatite, 520 kt REOKangankunde (Malawi) — dormant, carbonatite, 310 kt REOKutessay II (Kyrgyzstan) — dormant, alkaline, 150 kt REOMount Weld Duncan (Australia) — dormant, carbonatite, 830 kt REOTomtor (Russia) — dormant, carbonatite, 3400 kt REO
carbonatite
ion-adsorption
alkaline
placer
other

Source: USGS Mineral Resources Data System. Dot size proportional to estimated reserves.

Recycling Rates: RE vs Other Metals

RE recycling is structurally difficult: small per-unit quantities, complex separation chemistry, and dispersed end-of-life products.

RE Content per Application (kg REO)

Note: log scale. MRI scanners and DD wind turbines contain 100-300x more RE than a BEV.

Strategic Stockpile Status

USA
NdPr Oxide
71%
Dysprosium
36%
Terbium
38%
Lanthanum
100%
Cerium
100%
Japan
NdPr Oxide
78%
Dysprosium
72%
Terbium
75%
Cerium
100%
EU
NdPr Oxide
24%
Dysprosium
17%
Terbium
20%

Sources: DLA Strategic Materials (USA), JOGMEC (Japan), EU CRM Act proposed targets.

Satellite Mine Monitoring (NDVI)

Declining NDVI (vegetation index) indicates mine expansion/activity. Sentinel-2 monthly composites.

Source: Copernicus Sentinel-2 L2A. NDVI = (NIR − Red) / (NIR + Red). Lower values = less vegetation = more mining activity.

NdFeB Magnet Demand by Application

Electric Vehicles
28%+22%/yr

Fastest growing segment. Each EV traction motor: 1-3 kg NdFeB. Dual-motor EVs use 4-6 kg. Tesla moved to non-RE motors (SRM) in some models — but performance trade-off. Most OEMs still use NdFeB.

Wind Turbines
15%+12%/yr

Direct-drive offshore turbines use ~600 kg NdFeB per MW. Geared turbines use less. Offshore wind buildout (15-20 GW/yr) is major demand driver. Siemens Gamesa, Vestas, GE Vernova all use PM generators.

Consumer Electronics
18%+3%/yr

Smartphones (~2g NdFeB), laptops, tablets, headphones, speakers. Mature market, low growth. Apple, Samsung major consumers.

Industrial Motors & Robotics
15%+8%/yr

Industrial automation, CNC machines, servo motors, humanoid robots. Each industrial robot arm uses 1-2 kg NdFeB. Factory automation + humanoid robot trend could accelerate demand.

Defense & Aerospace
8%+10%/yr

Guided missiles, fighter jet actuators, satellite systems, sonar. SmCo magnets for extreme temperatures. US defense stockpile concerns driving domestic sourcing mandates.

MRI & Medical Devices
4%+5%/yr

MRI machines use NdFeB magnets. Gadolinium contrast agents. Stable demand, high-value applications.

Other (HVAC, elevators, appliances)
12%+5%/yr

Air conditioners, refrigerators, elevators, power tools. Energy efficiency regulations driving PM motor adoption in appliances.

China Production Quotas (kt REO)

2020COVID recovery year. Quotas increased despite demand dip.
140kt+6.1%
2021Massive increase. NdPr prices spiked 3x. EV magnet demand surge.
168kt+20.0%
2022Record quota. Consolidation into 'China Rare Earth Group' (state champion).
210kt+25.0%
2023Continued increases. Myanmar supply disrupted by ethnic conflict.
255kt+21.4%
2024Slower growth. China introduced rare earth management regulations (Oct 2024).
270kt+5.9%
2025Export controls on processing technology. Traceability system mandated for all domestic production. (estimated)
280kt+3.7%
2026ProjectedProjected. Modest growth expected as domestic demand absorbs more output.
290kt+3.6%

China Export Quotas vs Actual Exports

2022
Quota: 56ktActual: 52.1kt93.0% util
Japan 44%USA 11%Netherlands 10%South Korea 9%
2023
Quota: 58ktActual: 55.7kt96.0% util
Japan 43%USA 10%Netherlands 11%South Korea 9%
2024
Quota: 60ktActual: 54.2kt90.3% util
Japan 42%USA 9%Netherlands 11%South Korea 10%
2025
Quota: 58ktActual: 48kt82.8% util
Japan 41%USA 8%Netherlands 12%South Korea 10%

NdFeB Magnet Demand Forecast (kt)

2024
+10kt
Surplus
2025
+5kt
Surplus
2026
-4kt
Deficit
2027
-16kt
Deficit
2028
-30kt
Deficit
2029
-45kt
Deficit
2030
-63kt
Deficit
2031
-78kt
Deficit
2032
-96kt
Deficit
2033
-113kt
Deficit
2034
-131kt
Deficit
2035
-151kt
Deficit

China Domestic Absorption Monitor

Supply Tightness Signal

Domestic absorption = mining quota − actual exports. When China keeps more for itself, global supply tightens.

Tightness Score
80
3yr avg: 77 ↑ tightening
0 = loose · 100 = critical
2020
105kt absorbed+6.1% quota growth68.1% util
2021
119kt absorbed+20.0% quota growth90.6% util
2022
158kt absorbed+25.0% quota growth93.0% util
2023
199kt absorbed+21.4% quota growth96.0% util
2024
216kt absorbed+5.9% quota growth90.3% util
2025
232kt absorbed+3.7% quota growth82.8% util

Supply Gap vs Non-China Buildout

Derived

Magnet rare earth deficit overlaid with cumulative non-China project capacity coming online.

2035 Coverage Ratio
11.2%
non-China / total demand
Deficit Starts
2026
first year balance < 0
Non-China Capacity
66.4 kt
cumulative by 2035

Non-China Self-Sufficiency Timeline

Derived

Western demand (31% of global) vs non-China supply capacity. Import dependency on right axis.

Import Dep. Today11.3%
<80% by2024
<50% by2024
2035 Dep.63.9%

Non-China Project Pipeline

76.4 kt/yr capacity · $6.3B invested
Mountain Pass Mine & Magneticsoperational
40 kt/yr$700M
MP MaterialsMP·USA·mine + and + processing·Target: Operating (mine); 2025 (magnetics)

DOD Title III funding ($58M). DOE loan guarantee pending.

Only operating rare earth mine in the Americas. Currently ships concentrate to China — building on-site separation and magnet facility in Fort Worth, TX. Target: mine-to-magnet in USA by 2025.

Mt Weld Mine + LAMP + Kalgoorlieoperational
12 kt/yr$1200M
Lynas Rare EarthsLYC.AX·Australia / Malaysia·mine + and + processing·Target: Operating

DOD contract ($258M for heavy RE separation). Australian Critical Minerals Facility grant.

Largest non-Chinese integrated rare earth operation. Mt Weld (Australia) → LAMP (Malaysia) for separation. New Kalgoorlie cracking & leaching plant operational 2024, reducing Malaysia dependency.

White Mesa Mill RE Processingcommissioning
3 kt/yr$150M
Energy FuelsUUUU·USA·processing·Target: 2024-2025

DOE support for domestic RE processing.

Uranium mill in Utah repurposed for rare earth processing. Taking monazite sand feedstock from heavy mineral sand miners (Chemours). Producing mixed rare earth carbonate — needs further separation.

Eneabba Rare Earth Refineryconstruction
5 kt/yr$1700M
Iluka ResourcesILU.AX·Australia·processing·Target: 2027

Australian Government A$1.65B critical minerals loan. A$200M NAIF grant.

First fully integrated rare earth refinery outside of China. Will process feedstock from Iluka's Eneabba mineral sands stockpile and other Australian sources. Produces separated NdPr oxide.

Nolans Projectpermitting
4.4 kt/yr$1600M
Arafura Rare EarthsARU.AX·Australia·mine + and + processing·Target: 2029

Australian Government A$840M NAIF loan. Hyundai-Kia offtake agreement.

Integrated mine-to-oxide project in Northern Territory. Phosphogypsum waste challenge. Hyundai-Kia signed binding NdPr offtake for EV magnet supply. FID not yet taken.

Kvanefjeld (Kuannersuit)permitting
10 kt/yr$800M
Greenland Minerals·Greenland·mine·Target: Uncertain

None (politically contested). EU Critical Raw Materials interest.

Massive REE + uranium deposit. Greenland government banned uranium mining (2021), effectively blocking project. Political reversal possible as EU/NATO supply security concerns grow.

Pele Mountain (Eco Ridge)feasibility
2 kt/yr$200M
Ucore Rare MetalsUCU.V·Canada·processing·Target: 2028+

Canadian Critical Minerals Strategy funding.

Developing RapidSX continuous ion exchange separation technology — could disrupt Chinese solvent extraction dominance. Demo plant in Kingston, Ontario.

Non-China Project Investment Comparison

EDGAR-derived

Capital efficiency, government backing, and implied revenue using MP Materials' realized pricing ($51/kg).

Sort by:
#1Mountain Pass Mine & MagneticsMPoperational
$2M/yr
$18M/ktcapex40kt/yrcapacity8%govt backedOperational
#2White Mesa Mill RE ProcessingUUUUcommissioning
$0M/yr
$50M/ktcapex3kt/yrcapacityOperational
#3Kvanefjeld (Kuannersuit)permitting
$1M/yr
$80M/ktcapex10kt/yrcapacityOperational
#4Mt Weld Mine + LAMP + KalgoorlieLYC.AXoperational
$1M/yr
$100M/ktcapex12kt/yrcapacity22%govt backedOperational
#5Pele Mountain (Eco Ridge)UCU.Vfeasibility
$0M/yr
$100M/ktcapex2kt/yrcapacity2yr to prod
#6Eneabba Rare Earth RefineryILU.AXconstruction
$0M/yr
$340M/ktcapex5kt/yrcapacity100%govt backed1yr to prod
#7Nolans ProjectARU.AXpermitting
$0M/yr
$364M/ktcapex4.4kt/yrcapacity53%govt backed3yr to prod

Element Guide

Magnet Materials (High Value)
Catalyst & Industrial (Surplus)

Export Control Timeline

2023-07
ChinaExport controls on gallium and germanium

Not rare earths directly but signals willingness to weaponize critical minerals.

2023-12
ChinaBans export of rare earth extraction/separation technology

Prevents non-Chinese projects from licensing Chinese processing know-how. Major blow to Western supply chain.

2024-10
ChinaRare Earth Management Regulations take effect

All rare earth production under state supervision. Traceability system. Illegal mining crackdown.

2024-12
ChinaExport controls on antimony, gallium, germanium tightened

Escalation pattern. Rare earth restrictions widely expected if US-China tensions worsen.

2025-02
ChinaExport controls on rare earth processing technology expanded

Covers sintered NdFeB magnet manufacturing know-how. Targets emerging non-Chinese magnet producers.

Geopolitical Price Scenario Matrix

Historical multipliers from past export restrictions applied to current prices. "If China restricts exports again, how much could each element spike?"

ScenarioNdPrDyTb
Current Price
$71/kg$325/kg$1240/kg
Quota Cut (2011-style)
China cuts export quotas 40%, restricts processing
2010-2011 crisis
7.1x
$507/kg
14.9x
$4858/kg
7.7x
$9600/kg
Tech Ban (2023-style)
Processing technology + equipment export ban
2023 Ga/Ge controls
2.0x
$142/kg
2.5x
$813/kg
3.0x
$3720/kg
Full Embargo
Complete rare earth export halt to Western nations
Hypothetical (2011 × 1.2)
8.6x
$609/kg
17.9x
$5829/kg
9.3x
$11520/kg
2-3x
3-5x
5x+
Multipliers derived from 11-year price history × export control events

EV battery supply chain includes lithium, cobalt & nickel.

Battery Metals →

Track China export controls, quotas, and trade disruptions.

China Watch →

New mine projects, timelines, and capex across critical minerals.

Mining Pipeline →

End-to-end supply chain mapping and concentration risk.

Supply Chain →
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