Russia holds nearly 10% of global rare-earth reserves but produces just 0.64% of supply

Russia holds one of the largest rare-earth deposits on Earth, but it barely contributes to global production.

This comes at a time when demand for these minerals is exploding across industries that make electric vehicles, wind turbines, advanced electronics, and defense systems.

According to CNBC, President Vladimir Putin last week ordered officials in Moscow to finish a full road map by December 1 for the long-term extraction and processing of rare and rare-earth metals.

That order was issued inside the Kremlin, as the government tries to regain ground in a field where others moved earlier and faster.

The United States Geological Survey estimates there are around 110 million tonnes of rare-earth deposits worldwide. China controls around 44 million tonnes, followed by Brazil with 21 million tonnes, while India and Australia hold significant shares as well.

Myanmar holds large, heavy rare-earth deposits, but the size is not officially known. Russia is believed to have the fifth-largest reserves, totaling roughly 3.8 million tonnes.

That is larger than the United States, which is estimated to have around 1.9 million tonnes. Yet despite this advantage, Russia produced only about 2,500 metric tons this year, or roughly 0.64% of global output.

Moscow orders expansion plan as demand rises

Putin’s government is now preparing to expand production. The effort comes as global supply chains tighten, especially after China limited exports of rare-earth materials in reaction to U.S. tariffs.

Those limits were paused after an agreement between Donald Trump, now back in the White House, and Xi Jinping, where China agreed to suspend controls for one year in exchange for reduced fentanyl-related tariffs.

Trump has also explored securing rare-earth resources in Ukraine, where deposits lie mostly in the south and east of the country, areas partially occupied by Russian forces. He has also repeatedly shown interest in resource-rich Greenland.

Aware of that, Putin stated publicly that the country is open to joint projects with foreign partners to extract and process its rare-earth metals.

Willis Thomas, principal consultant at CRU Group, said Russia has mined rare metals for decades but is now trying to reposition itself. Thomas said, “The U.S. is scrambling for a need. Russians are scrambling for an opportunity.”

That opportunity, however, depends on the quality of deposits and the transparency of geological reporting.

Earlier this year, the Natural Resources Ministry in Moscow claimed the country has reserves of 15 rare-earth metals totaling 28.5 million tonnes, which is far higher than U.S. Geological Survey figures.

Thomas said some reserves may be of lower quality, while others may be undisclosed entirely. He said the only reason a government would reveal full geological breakdowns is to raise outside capital.

Decision between China and the U.S. remains unresolved

A major question now is whether Russia strengthens ties with China or seeks development deals with Western partners.

Thomas explained that mining is the simple part. Processing, separation, and finding buyers is where China dominates, handling roughly 69% of global rare-earth refining.

Russia has already expanded supply chains with Beijing and could become one of several raw-ore suppliers, alongside Myanmar, Malaysia, and Laos.

China has been increasing imports of raw materials to maintain output as some of its domestic deposits decline in grade.

The option to partner with the U.S. is complicated by the war in Ukraine and strained relations between Trump and Putin.

Trump recently met leaders from five Central Asian nations to discuss critical minerals and said expanding American supply chains is a key priority.

Piyush Goel, a critical metals analyst at CRU, said Western companies may refuse to buy material from Russia while the war continues. That would push the country closer to China instead, even if that means selling with no pricing advantage.

Goel said China’s processing and separation network is so advanced that Russia could position itself to fill future supply gaps when Chinese deposits decline.

Get $50 free to trade crypto when you sign up to Bybit now