Today, few topics attract as much global attention as the production and consumption of rare earth elements (REEs). The price surge triggered by China in 2010 affected virtually all industrial sectors in which REEs are used. Leading economies became concerned about the resilience of their industries, ranging from consumer goods manufacturing to high-technology sectors such as energy, optics, communications, medicine, and defense.

A defining feature of the current REE market is that demand for rare earths is growing faster than for most other metals. This trend is driven by two main factors. First, new applications for REEs continue to emerge. Their use has expanded significantly in fiber-optic systems, data storage devices, batteries, and fuel cells. REE-based components are increasingly viewed as key enablers of industrial decarbonization and sustainable consumer products, particularly in the rapidly growing electric vehicle sector and in solar energy technologies. Second, the overall volume of REE-containing products is increasing steadily.

Another important trend is the changing structure of REE production. After mining at the Mountain Pass deposit (California) and other U.S. sites was suspended in 2002, China became the dominant producer of rare earths. This led to a sharp price increase — up to twentyfold for some elements. Until very recently, the entire production chain — from mining and beneficiation to primary processing, separation into individual elements, and the manufacture of REE-based products — was effectively monopolized. Approximately 95% of output in the upstream and midstream segments was concentrated in China, where more than 200 rare earth enterprises operate, including over 30 mines and more than 10 processing plants, not counting numerous small-scale producers involved in informal supply chains.