Rare earths, also known as rare-earth elements and rare-earth metals, are a group of 17 metals with a range of applications in electronics, semiconductors, renewable energy technology, lasers, magnets, and other industrial and military uses. Rare earths were once difficult to find but are now relatively abundant thanks to technological advances.
China accounts for roughly 70% of rare earth extraction and 90% of rare earth processing, giving it firm control over the rare earth supply chain and supply chains for the numerous key products and innovations that rely on rare earths.
Concern over China's rare earths dominance has led other countries to adopt measures to jump-start domestic rare earth mining and refining. Still, 80% of U.S. consumption of rare earths in 2024 relied on imports, 77% of which came from China.
Rare earth supply chain diversification has taken on greater urgency with China restricting exports of seven rare earth elements and magnets -- samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium -- to the United States in response to the Trump administration's imposition of tariffs on Chinese goods. Those elements have critical uses in the defense, energy, and automotive industries.
For a full breakdown of rare earth statistics, including import and export data, production, and import reliance, read on.
Where does the U.S. import rare earths from?
China is the dominant supplier of rare earths to the United States, accounting for 77% of U.S. rare earth imports in 2024, roughly 10.4 million kilograms. A far distant second to China, rare earths from Malaysia made up 9% of U.S. imports. Estonian rare earths accounted for 6% of U.S. imports, and Japanese rare-earth elements made up 3% of U.S. imports.
The table and chart above show U.S. rare earth imports from every country in 2024.
U.S. imports of rare earths from China
China has been by far the top source of rare earths for the United States -- and much of the world -- for decades. Despite calls for diversification away from China, 77% of U.S. rare earth imports came from China in 2024, up from 74% in 2023 and 72% in 2022.
The amount of rare earths the U.S. imports from China has dropped over time, from 18 million kilograms in 2004 to 10 million kilograms in 2024, and the U.S. has become less reliant on imports of rare earths overall. Still, the U.S. -- and the rest of the world -- remains essentially entirely reliant on China for certain rare earths, including heavy processed rare earth elements and rare earth magnets.
U.S. rare earths production compared to the rest of the world
China is by far the largest producer of raw rare earths, mining over 270,000 metric tons in 2024, which accounted for 69% of all rare earth mining production that year, according to the U.S. Geological Survey. The U.S. is a distant second and produced almost 12% of mined rare earths that year. China processed almost 90% of rare earths in 2023.
The United States mined 45,000 metric tons of rare earths in 2024, up from 41,600 in 2023 -- a fraction of China’s production and its own consumption. There is a single active rare earth mine in the United States, in Mountain Pass, California. That mine used to produce most of the world's supply of rare earths from the 1960s until 1995, after China joined the World Trade Organization and its exports poured into global markets. Mountain Pass closed in 2002 and reopened in 2017.
The company that owns Mountain Pass, MP Materials, ships the majority of its mined rare earths to China for processing because there is no U.S. capacity to separate heavy rare earths. The Pentagon has announced plans and funding to reshore and ramp up U.S. production and processing of rare earths, but domestic capacity that can match demand is far off.
What investors need to know about rare earths
U.S. access to rare earths from China is in flux, which could impact companies in a range of industries, including aerospace, renewable energy, advanced manufacturing, and defense.
Investors should monitor shifts to Chinese export controls and other restrictions on rare earth shipments to the United States. They should pay particular attention to magnets and heavy rare earths.
Investors with a longer time horizon might consider watching for U.S. government funding and contracts to specific companies in support of domestic rare earths mining and processing. Permitting for new rare earths mines and processing facilities is another factor to keep an eye on, as are new technologies and potential breakthroughs that could impact the long-term viability of a domestic U.S. rare earth supply chain.
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