Global Rare Earth Mining Rises in 2024, But Reserves Shrink Sharply

Rare Earth Mining

Slower output growth and falling reserves raise concerns for long-term supply security

Global rare earth element (REE) mining output increased by 3.7% in 2024, reaching approximately 390,000 tonnes of rare earth oxide (REO) equivalent, according to the latest US Geological Survey (USGS) data. However, global reserves fell 21% year-on-year to 90 million tonnes, raising concerns about the future availability of these critical materials.

This year's modest output growth came in contrast to the 25% jump in 2023, signaling a slowdown driven by production declines in Myanmar and Australia. In contrast, China, the US, Thailand, and Nigeria increased their contributions, with China once again dominating global supply.

China strengthens position as top supplier amid growing NEV demand

China accounted for 69% of global REE output in 2024 after raising its mining quotas to meet strong permanent magnet demand. This was followed by the United States (11.5%), Myanmar (8%), and Australia and Thailand (3.3% each). China's production push aligns with record-breaking new energy vehicle (NEV) output, a sector that consumes over one-third of all global permanent magnets.

According to the China Association of Automobile Manufacturers (CAAM), China produced 12.888 million NEVs in 2024, a 34% increase from 2023. Sales climbed 36% to 12.866 million units, while NEV exports rose 6.7% to 1.284 million units. Despite growth, exports face headwinds from EU countervailing duties and tariffs imposed by the US and Canada.

Rare earth reserves fall as exploration lags behind demand

Global rare earth reserves dropped by 21%, primarily due to declining estimates in Vietnam and Russia. Small increases in reserves in South Africa and the US were not enough to offset broader depletion. As demand from the electric vehicle and clean tech sectors accelerates, the widening gap between production and reserve replacement may pose strategic supply risks.

The permanent magnet sector, which consumes nearly half of all rare earths, will remain a key driver of REE demand. As global adoption of electric vehicles surges, rare earth supply chains must adapt to avoid long-term shortages.