A new report has revealed that Australia can overtake the US to become the world’s second-largest producer of rare earth elements (REEs), after China. Used for renewable energy and technology components, REEs are expected to grow in demand beyond capacity as these sectors continue to boom. For example, renewable energy accounted for 92.5 percent of new power capacity worldwide last year, while the consumer electronics market is projected to reach $18 trillion by 2032.
The report, by global intelligence and analysis platform Earth Rarest, has analysed Australia’s rare earth mining landscape, including global production data and multiple Australian REE projects in the pipeline. The full report is available here: Australia Rare Earth Mining Boom: Breaking China's Monopoly.
As the REE world leader, China produces around 270,000 tonnes of REEs overall – 70 percent of global supply. The US contributes just 12 percent (45,000 t) and Australia 3 percent (13,000 t). China also controls 99.9 percent of global production of heavy REEs, used to produce components for EV motors, wind turbines, energy-efficient lighting and LED screens.
China’s dominance comes with significant risks. It has the control, technology and knowledge of most of the downstream processing, making it central and indispensable in the global rare earth supply chain. This gives it significant influence over REE pricing. China has also previously halted rare earth exports and, since April 2025, has introduced strict export controls on seven rare earth elements.
In comparison, Australia is rich in light rare earth elements – such as neodymium (Nd), praseodymium (Pr), cerium (Ce) and lanthanum (La) – which together account for around 85 percent of global demand. These materials are needed for technologies such as electric vehicle motors, permanent magnets in wind turbines and cameras. But Australia lacks significant reserves of heavy rare earths like dysprosium (Dy) and terbium (Tb).
However, several projects in Australia, backed by Federal Government support, are now under development to boost our capacity. For instance, Lynas Rare Earths in WA will produce 17,500 tonnes of total rare earth oxide (REO) output by the end of the year. Australia’s first domestic REE refinery, WA’s Eneabba Refinery, will be in operation next year. In the Northern Territory, the integrated mine and processing plant Nolan’s Project, under construction, has already secured offtake deals with Hyundai, Kia and Siemens. Browns Range in Western Australia will focus on heavy REEs.
Earth Rarest’s report forecasts that these projects, if executed as planned, could enable Australia to supply 15-20 percent of global ex-China NdPr demand and elevate it to the world’s second-largest REE supplier.
Russell Gous, spokesperson for Earth Rarest, says: “Australia needs to double down on its 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 and trading blocs to reduce reliance on China for critical minerals.
“With more 17 million electric cars were sold last year alone, pushing the global EV total past 58 million3, 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.”
The full report, including global production data and Australian project pipelines, is available here: Australia Rare Earth Mining Boom: Breaking China's Monopoly.