A new report has revealed that Australia could overtake the US to become the world’s second-largest producer of rare earth elements, behind China.
The report, by global intelligence platform Earth Rarest, analysed Australia’s rare earths mining landscape, including global production data and upcoming projects.
According to the report, China currently produces around 270,000 tonnes (t) of rare earths annually, about 70 per cent of global supply. The US contributes 12 per cent (45,000t) and Australia 3 per cent (13,000t). China also controls almost all production of heavy rare earths, essential for electric vehicle (EV) motors, wind turbines, energy-efficient lighting and LED screens.
The report warned that China’s dominance poses significant risks to Western supply chains and high-tech industries. China has previously halted rare earth exports and, since April 2025, has introduced strict export controls on seven REE elements.
The Federal Government has sought to position Australia as a “trusted supplier” for critical minerals.
Australia’s abundant light rare earths – including neodymium (Nd), praseodymium (Pr), cerium (Ce) and lanthanum (La) – position its miners to meet growing global demand. Several projects are already underway with Federal Government backing.
Lynas Rare Earths in WA expects to produce 17,500 tonnes of total rare earth oxide (REO) by year’s end. WA’s Eneabba refinery, Australia’s first domestic rare earths refinery, is due to begin operations next year.
In the Northern Territory, the Nolan’s mine and processing plant is under construction and has secured offtake deals with Hyundai, Kia and Siemens. Browns Range in WA will specialise in heavy rare earths.
According to Earth Rarest, these projects could enable Australia to supply 15–20 per cent of global ex-China NdPr demand, elevating the country to the world’s second-largest rare earths supplier.
Earth Rarest spokesperson Russell Gous said Australia must increase investment in rare earth mining, processing and manufacturing.
“While the technology and skills beyond China aren’t fully developed, there is strong political motivation in Australia and other markets to reduce reliance on China for critical minerals,” Gous said.
“With more than 17 million electric cars sold last year alone, pushing the global EV total past 58 million, demand for rare earths is soaring. With projects already underway, Australia is making progress and will be well placed to lead the Western world in producing the materials necessary for clean energy, technology devices and defence.”