It is worth highlighting several key conceptual categories that underpin the understanding of current processes in rare earth element (REE) production and consumption, which are now clearly manifested both at the national level and in the global market.

REE basket price.
Until recently—particularly against the backdrop of the sharp and often uncontrolled rise in rare earth prices on the global market—the issue of REE production and supply to manufacturers of end-use products was perceived in a largely undifferentiated manner. Attempts at deeper analysis led to the emergence of the concept of the “REE basket price,” used by experts at Technology Metals Research, who provide quarterly assessments of advanced projects within the TMR Advanced Rare Earth Projects Index. While this indicator essentially reflects only price dynamics for REE oxides of a specific grade, it offers limited insight into the actual economic value of a project and is often employed for speculative purposes at the stage of strategic decision-making.

Critical elements.
A more constructive step forward was the comprehensive analysis of current and future demand for individual lanthanides, their importance for manufacturers of end-use products, the potential impact of geopolitical factors on supply chains, and the distribution of specific REEs across different raw material sources. In 2011, the U.S. Department of Energy conducted a study of global reserves, demand, and consumption of critical materials used in clean energy and alternative energy technologies. The study concluded that a number of rare earth metals are critical for energy technologies, as their demand could exceed global supply in the near future. This led to the introduction of the concept of “critical elements,” which are essential for sustainable development and national security [1]. These include the rare earth elements praseodymium, neodymium, europium, terbium, dysprosium, and yttrium.

Structural imbalance between REE production and consumption.
It is now increasingly important to consider the views of specialists who have long pointed to a “structural imbalance” within the rare earth production–consumption chain [2,3]. Mineral REE-bearing raw materials from most currently exploited and prospective large deposits are dominated by the more abundant light rare earth elements of the cerium group. In recent years, the search for alternatives to Chinese REE sources has given rise to more than 50 projects worldwide, two of which — Molycorp and Lynas — have already entered the market with designed capacities of approximately 40 and 22 thousand tonnes per year, respectively, largely comprising light rare earths. In the ores processed by the leading Western producers Molycorp and Lynas, the share of light rare earth elements reaches 98.6% and 94.7%, respectively.