Mining guide ยท 44 articles

Rare Earths and Critical Minerals

Rare earth elements turn up in magnets, electric cars, wind turbines, phones, semiconductors and defence systems, yet supply is concentrated in few places. These articles map where reserves and mines are, from the US and Australia to Thailand’s Chatree, Burundi and beach sand deposits, and look at the rarest and most valuable minerals along the way.

Investors will find profiles of rare earth companies, ASX and US miners, and ETF lists, with a separate set tracking prices for neodymium, praseodymium, NdPr and cerium. Geologists and supply chain staff can turn to the pieces on demand projections, transport problems and the environmental side of mining these elements.

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Main guides

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Case studies from our exploration projects

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Reserves, deposits and mining countries

9 articles

The rarest and most valuable minerals

3 articles

Prices and demand outlook

7 articles

Companies, stocks and ETFs

9 articles

Uses in defence, energy and technology

8 articles

Environmental and logistics challenges

2 articles

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Rare earths and critical minerals: what the terms mean

The rare earth elements are a fixed chemical group of 17 metals: the 15 lanthanides from lanthanum to lutetium, plus scandium and yttrium. Geologists split them into light rare earths (lanthanum through to europium or so, including neodymium and praseodymium) and heavy rare earths (gadolinium onward, including terbium and dysprosium, with yttrium usually grouped alongside them). Our article on what rare earth elements are lists all 17.

“Critical minerals” is a policy term, and it means something different. Each government keeps its own list of minerals that matter to its economy or defense and whose supply could be disrupted. The US list is maintained by the USGS, the EU sets one under its Critical Raw Materials Act, and Australia publishes its own. Rare earths appear on all of them, but so do lithium, cobalt, graphite, nickel, tungsten and many others. So every rare earth is a critical mineral in most countries, while most critical minerals aren’t rare earths. “Strategic minerals” is an older, looser term for much the same idea.

Where rare earth deposits form

Rare earths aren’t especially rare in the crust. Cerium is about as common as copper. What’s rare is a deposit where they’re concentrated enough, in minerals that can be processed economically. Most production comes from a few deposit types:

  • Carbonatites and alkaline intrusions, the source of large hard-rock mines such as Mountain Pass in California and Mount Weld in Western Australia. The ore minerals are mostly bastnรคsite and monazite, rich in the light elements.
  • Ionic adsorption clays, where weathering of granite leaves rare earths loosely held on clay surfaces. These are the main source of heavy rare earths, mostly in southern China and Myanmar, and they’re now being explored in Australia, Brazil and Africa.
  • Heavy mineral sands, the beach sand minerals that are mined mainly for ilmenite, rutile and zircon. Monazite and xenotime come out as by-products. Monazite contains thorium, which adds radioactive-waste handling to the processing.

Our country guide to rare earth reserves and production uses USGS figures to show where these deposits are, and beach sand mining for rare earths covers the mineral sands route.

Why dysprosium and terbium get so much attention

The biggest use of rare earths by value is the neodymium-iron-boron (NdFeB) permanent magnet, found in electric vehicle motors, wind turbine generators, hard drives, speakers and many defense systems. Neodymium and praseodymium (sold together as NdPr) make up most of the rare earth content. Small additions of dysprosium or terbium let the magnet keep its strength at high temperature, which matters in a hot traction motor. Because the heavy elements come mostly from ionic clays and are separated mostly in China, a supply problem for dysprosium has an outsized effect on magnet makers elsewhere. China has also used export licensing on rare earth materials and processing technology, which is why searches pairing dysprosium with China, Australia or Russia spike when trade news breaks. We cover producers in dysprosium mining companies.

From mine to magnet: the rare earth supply chain

Mining is only the first and often the simplest step. Ore is concentrated at the mine, then “cracked” with acid or alkali to dissolve the rare earths. The hardest part is separation: the elements are chemically so alike that solvent extraction plants need hundreds of mixer-settler stages to pull them apart into individual oxides. Oxides are reduced to metal, alloyed, and only then pressed and sintered into magnets. Most separation and magnet manufacturing capacity is in China, so a new mine in the US or Australia still needs a separation and magnet route before it changes supply. That’s why new projects talk about refineries and offtake agreements as much as about ore.

How rare earth exploration works

Explorers usually start with airborne radiometric surveys, since thorium and uranium often travel with rare earths, then follow up with soil and rock geochemistry, mapping and drilling. Satellite data helps at the regional stage. Some rare earth minerals have narrow absorption features in visible and near-infrared light, which hyperspectral sensors can pick up and broadband sensors mostly miss, and multispectral and radar data map the alteration and structure around carbonatites and intrusions. Our satellite mineral detection service adds hyperspectral data when a mineral needs narrow bands, as rare earths do, and produces ranked Exploration Targets ahead of a JORC or NI 43-101 resource estimate, not a replacement for one.

Reading rare earth company and project news

Searches for names such as Arafura Rare Earths, Rare Element Resources or Australian Rare Earths are common on this hub. We don’t give investment advice, but a few questions help make sense of any project announcement:

  • What stage is it at: exploration, scoping study, feasibility, construction or production?
  • Is there a resource reported under JORC, NI 43-101 or the US S-K 1300 rules, and how much of it is in the Measured and Indicated categories?
  • What’s the basket? The share of NdPr, dysprosium and terbium in the ore matters more than total rare earth grade.
  • Has the metallurgy been tested, and where will the concentrate be separated?
  • Are permits, funding and offtake in place?

Our Arafura analysis and the US rare earth minerals map apply these questions to real projects. For prices, rely on dated figures from the USGS or a named price reporting agency.

Common questions about rare earths

What is the difference between critical minerals and rare earth elements?

Rare earth elements are a fixed group of 17 metals defined by chemistry. Critical minerals are a policy list each government draws up based on economic importance and supply risk. Rare earths are on nearly every critical minerals list, alongside many other minerals such as lithium, cobalt and graphite.

Where are rare earth deposits found?

Mainly in carbonatites and alkaline igneous rocks, in weathered ionic clays and in heavy mineral beach sands. Large hard-rock examples include Mountain Pass in California and Mount Weld in Western Australia, while most heavy rare earths come from clay deposits in southern China and Myanmar.

Are rare earths actually rare?

Not in the crust as a whole. Several are more common than lead or tin. They’re called rare because economic concentrations are uncommon and separating the elements from each other is difficult and expensive.

Can satellites find rare earth deposits?

Satellites can narrow the search. Hyperspectral data can detect some rare earth minerals at the surface, and multispectral and radar data map the rocks and structures that host them. Targets still need ground sampling and drilling before any resource can be reported.

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