Where Are the World’s Rare Earths?

The global distribution of rare earth reserves remains highly concentrated, as data from the International Energy Agency’s Rare Earth Elements 2026 report shows. China alone accounts for roughly half of the world’s known reserves in 2026 (44 million tonnes of rare earth oxide equivalent, or about 49 percent), far ahead of Brazil (21 Mt, 23 percent) and India (7.2 Mt, 8 percent). Australia, Russia and Vietnam also hold notable deposits (3 to 6 Mt each), while the United States accounts for a relatively small share of the total (around 2 percent). Altogether, these seven countries represent roughly 97 percent of the world’s currently known reserves, underscoring the geographic concentration of these critical resources. Myanmar, an important producer, is not included in the IEA analysis due to a lack of reliable data.

According to the IEA, demand for rare earth metals is set to rise sharply through 2030 and beyond, driven primarily by clean energy applications. Electric mobility and wind power are expected to be the main growth engines, with their combined share of demand increasing significantly through 2050 under current policy scenarios. At the same time, supply chains remain even more concentrated than reserves. China not only dominates mining but also controls a large share of processing and manufacturing capacity for critical minerals. This imbalance highlights a key vulnerability identified by the IEA: while resources are geographically more widespread, the capacity to refine and convert them into usable materials is far less diversified.

Recycling could help alleviate some of this pressure, but it remains limited. Recycling rates for rare earth elements remain very low (less than 1 percent globally) compared to other critical materials, largely due to technical and economic challenges in recovering them from end products. However, new capacity is beginning to emerge, particularly outside China, with announced projects in regions such as Europe, North America and Japan aimed at building more resilient and diversified supply chains.