MOSCOW, March 30Global production of rare earth metals continues to grow steadily, reaching 353 thousand tons last year, according to the US Geological Survey. According to the experts interviewed, there is no talk of their surplus on the global market yet: they are still actively used in the production of electric vehicles, smartphones and weapons, but in the next 5-10 years, an overproduction crisis is quite possible.
The largest player in the rare earth metals market is China. It accounted for 68% of all global production last year, according to the US Geological Survey. At the same time, its share returned to decline last year after a sharp jump in 2022 to 70%. The USA itself (12%) and Myanmar (11%) also play a significant role in this market. Russia has 1%. China's leadership in production ensures superiority in reserves — the Celestial Empire accounts for 38% of scandium, terbium and the remaining 17 rare earth elements. World reserves, according to the department, amount to 110 million tons, Russia has 9% of them.
They are used to make batteries and magnets for electric and hybrid cars, as well as magnets for wind generators. They are also used in electronic devices such as smartphones. Another important area of their use is the production of weapons. This, according to experts, ensures a fairly high demand for them.
«So far there is no talk of an oversupply of these metals in the world. On the contrary, many countries are thinking about how to reduce their dependence on China in this matter,» notes the stock market expert at BCS World of Investments «Lyudmila Rokotyanskaya. According to her, the growth in rare earth metals production may also indirectly indicate that China is increasing its defense capabilities.
China’s dominance in the market creates a significant threat, primarily for the United States and the EU, and makes China’s position in this market a lever of political pressure, agrees Maxim Osadchy, head of the analytical department of BKF Bank.
«In the coming years, we can hardly expect the destruction of Chinese dominance in the rare earth metals market. However, already in the medium term, in 5-10 years, a turning point may occur that could cause a crisis of overproduction of rare earth metals,» the expert believes.
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