Russia's Place in the Race for Rare Earths
17:37 GMT 12.01.2025 (Updated: 17:41 GMT 12.01.2025)
© Sputnik / Pavel Lisitsyn
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Resource-wise, Russia has been endowed with the entire Periodic Table of Elements. Amid the growing global competition for strategic tech minerals, here are the opportunities and challenges facing Russia if it seeks rare earths superpower status.
The full extent of Russia’s rare earths reserves has yet to be discovered, with wide swathes of mineral-rich Siberia still unexplored, and the State Geological Agency finding dozens of new strategic mineral deposits each year.
In 2024, the Federal Subsoil Resources Management Agency (Rosnedr) estimated that Russia has up to 28.7 million tons of rare earths, including 18 major deposits, second only to China (44 million tons) and accounting for over 20% of the world’s 130 million ton stockpile.
Today, Russia’s share of global rare earths output is miniscule – less than 1%; processing is practically nil. Therefore, “serious potential” exists in the field, Rosnedr says.
Russia’s Ministry of Industry and Trade expects rare earths production and consumption to more than double in 2030, in accordance with a state-backed strategy to achieve critical mineral self-sufficiency.
Russia needs rare earths for its nuclear industry and defense sectors, the oil and gas industry (which consumed 830 tons of lanthanum, yttrium, and other minerals in 2023), renewables (200 tons), the glass and optics industries (100 tons) and electronics (100 tons).
Challenges and Opportunities
With the global rare earths market expected to more than double in value to nearly $11 billion by 2030, Russian firms engaged in mining, like national giants Rosatom, Rostec, Norilsk Nickel, Gazprom, as well as regional companies, have an opportunity to get a share of the profits on export markets.
Challenges include rebuilding supply chains lost after the USSR’s demise, which left Russia without large-scale refining capacity. Major Soviet processing plants were built in Kazakhstan (production stopped), Kyrgyzstan, and Estonia (now owned by a Canadian mining company).
China’s technological lead and market dominance (60% of production, 90% of processing) could also make exports difficult. Rare earth ores’ composition is complex, and valuable minerals are often concentrated alongside harmful or worthless elements, making their extraction a costly and technologically extensive prospect.
To boost production, measures were approved in 2020 to slash taxes on rare earths mining from 8 to 4.8%, even bigger tax breaks on new production for the first 10 years, and soft loans at state-subsidized interest rates.
Rosatom is the leader in the Russian rare earths sector. Its production is expected to reach 2,700 tons in 2025, and 7,500 tons by 2030. Until recently, Rosatom-owned Solikamsk Magnesium Plant in Perm, built in the 1930s, accounted for nearly 100% of Russia’s rare earths output.
Other major fields containing rare and strategic minerals include the Tomtorskoye deposit in Yakutia, discovered in 1977 and endowed with some of 3.2 million tons of oxides, and the Kolmozerskoye deposit in Murmansk region, found in the 1950s and containing up to 844,000 tons of lithium oxide and other ores.
Additional sites where major concentrations of minerals are present include the Zashikhinskoye mining site, the untapped Kovytka gas field, and the Yaraktinskoye oil field, all in Irkutsk, the Polmostundrovskoye lithium deposit in Murmansk, the Zavitinskoye deposit in Transbaikal, the Tyrnyauz mining project in Kabardino-Balkaria, the Kongor-Chrome project in Yamalia, and the Saranovskoye deposit in Perm.
The latter sites, already operational or set to come online within the next five years, are currently focused on ensuring Russia's self-sufficiency in other strategic tech metals, like niobium, chromium, manganese, titanium, molybdenum and tungsten (whose combined production is expected to reach 70,000+ tons in 2030). But they also have rare earths potential.
2 December 2024, 10:38 GMT
