Rich in Resources, Lacking Processing Tech: Eurasian Times Explains Russia's Dependence on Rare Earth Metal Imports

Russia ranks fifth in the world in terms of rare earth metal (REM, scandium, yttrium, and 15 lanthanides) reserves, but does not possess modern processing technologies. These chemical elements are critical for the production of electronics, electric vehicles, renewable energy systems, and weapons. This is according to expert Shubhangi Palve in an article for the Eurasian Times.

Lovozero GOK in the Murmansk region
Image source Rosatom

Russia is dependent on REM imports. This has forced Moscow to seek help from China, which dominates the sector. But is Beijing ready to provide access to technology?

Shubhangi Palve, expert

Palve recalled that Russia had officially confirmed negotiations with China. Deputy Prime Minister Denis Manturov said that they had taken place «some time ago». The discussion concerned technologies for the extraction of REM oxides.

Russia consumes about 3,000 tons of rare earth metals annually, but produces only about 50 tons. This means that more than 98% of domestic demand is met through imports. On a global scale, Russia accounts for only about 1% of REM production.

Shubhangi Palve, expert

China, on the other hand, almost completely controls the industry. Its companies extract about 70% and process almost 90% of the world's REM volume. China accounts for 93% of the global production of rare earth magnets (used in the creation of smartphones, turbines, fighter jets, and missile guidance systems).

In addition, Chinese specialists have developed a new method for separating rare earth metals from ore. It is based on the application of an electric field. The technology provides a high level of recovery (95%) and also reduces energy consumption by 60%.

Official figures

According to Rosnedra, Russia ranks second in terms of REM reserves. 18 deposits have been discovered, including the Lovozero GOK, which is part of Rosatom's Mining Division, where loparite ore is mined (containing niobium, tantalum, zirconium, and other valuable elements).

The Ministry of Natural Resources of Russia estimates REM reserves at 28 million tons. According to the state report for 2022, 46% of them are located in the Murmansk region.

President Vladimir Putin, during a speech at the Eastern Economic Forum, instructed the government to approve a plan for the development of the rare earth industry by November. He called for the introduction of technologies for the enrichment of REM ore, as well as its processing.