Russia eyes US$1.5 billion plan to rival China’s dominance in rare earths

Russia is planning investment of US$1.5 billion in rare earth minerals, critical to the defence, telecommunications and renewable energy sectors, as it strives to become the biggest producer after China by 2030, a top government official said.

Russia’s initiative is in line with other countries, such as the United States, which are also trying to curb their reliance on China, home to 63 per cent of global rare earths production and 37 per cent of global reserves.

China’s dominance is so established, it is hard to weaken.

Russia has reserves of 12 million tonnes, or 10 per cent of the global total, and the government is willing to back any foreign investment.

Covid-19 slows US’ electric vehicle minerals, rare earths push

Alexei Besprozvannykh, Russia’s deputy industry and trade minister, said Russia was offering reduced mining taxes and cheaper loans to investors in a list of 11 projects designed to increase Russia’s share of global rare earths output to 10 per cent by 2030 from 1.3 per cent now.

The Russian projects will require at least US$1.5 billion in investment, he said.

China will keep its market dominance, but Russia’s “goal is to be at least the second after them by 2030”, Besprozvannykh said.

Malaysia signs rare earths deal with miner Lynas

So far, rare earth processing is almost totally controlled by China, with the exception a plant in Malaysia, operated by Australia’s Lynas Corp, and the US is reviving production.

The 11 projects, which include developing the Tomtor deposit in Russia’s far east, will allow Russia to become almost self-sufficient in rare earth elements by 2025 and start exports in 2026, the deputy minister said.

By 2024, Russia’s production of rare earths concentrate may reach 7,000 tonnes a year, he added. The US Geological Survey estimated Russia’s 2019 production at 2,700 tonnes.