Russia Sits on 10% of World’s Rare-Earth Riches—But Mines Just 0.64% of Global Supply

Buried Treasure, Neglected Potential

While Moscow hoards one of the planet's largest rare-earth stockpiles, its extraction efforts barely scratch the surface—leaving Western tech giants sweating over China's near-monopoly.

The Geopolitical Powder Keg

These metals power everything from EVs to missiles, yet Russia's 10% reserves-to-0.64% production gap screams untapped opportunity—or gross mismanagement, depending which oligarch you ask.

Wall Street's Blind Spot

Analysts still price rare earths like a niche commodity, ignoring their role as the 21st century's oil. Then again, these are the same geniuses who thought WeWork was worth $47 billion.

Moscow orders expansion plan as demand rises

Putin’s government is now preparing to expand production. The effort comes as global supply chains tighten, especially after China limited exports of rare-earth materials in reaction to U.S. tariffs.

Those limits were paused after an agreement between Donald Trump, now back in the WHITE House, and Xi Jinping, where China agreed to suspend controls for one year in exchange for reduced fentanyl-related tariffs.

Trump has also explored securing rare-earth resources in Ukraine, where deposits lie mostly in the south and east of the country, areas partially occupied by Russian forces. He has also repeatedly shown interest in resource-rich Greenland.

Aware of that, Putin stated publicly that the country is open to joint projects with foreign partners to extract and process its rare-earth metals.

Willis Thomas, principal consultant at CRU Group, said Russia has mined rare metals for decades but is now trying to reposition itself. Thomas said, “The U.S. is scrambling for a need. Russians are scrambling for an opportunity.”

That opportunity, however, depends on the quality of deposits and the transparency of geological reporting.

Earlier this year, the Natural Resources Ministry in Moscow claimed the country has reserves of 15 rare-earth metals totaling 28.5 million tonnes, which is far higher than U.S. Geological Survey figures.

Thomas said some reserves may be of lower quality, while others may be undisclosed entirely. He said the only reason a government WOULD reveal full geological breakdowns is to raise outside capital.

Decision between China and the U.S. remains unresolved

A major question now is whether Russia strengthens ties with China or seeks development deals with Western partners.

Thomas explained that mining is the simple part. Processing, separation, and finding buyers is where China dominates, handling roughly 69% of global rare-earth refining.

Russia has already expanded supply chains with Beijing and could become one of several raw-ore suppliers, alongside Myanmar, Malaysia, and Laos.

China has been increasing imports of raw materials to maintain output as some of its domestic deposits decline in grade.

The option to partner with the U.S. is complicated by the war in Ukraine and strained relations between TRUMP and Putin.

Trump recently met leaders from five Central Asian nations to discuss critical minerals and said expanding American supply chains is a key priority.

Piyush Goel, a critical metals analyst at CRU, said Western companies may refuse to buy material from Russia while the war continues. That would push the country closer to China instead, even if that means selling with no pricing advantage.

Goel said China’s processing and separation network is so advanced that Russia could position itself to fill future supply gaps when Chinese deposits decline.

Get $50 free to trade crypto when you sign up to Bybit now