The rare earth market is undergoing a shift in geographical supply chain concentration, spurred by Western efforts to reduce reliance on China off the back of growing demand, focus on national security, and the strategic importance of the materials. Over the last decade, annual rare earth supply has tripled, setting global production records almost every year – from 142,000 tonnes in 2013 to 359,000 tonnes of rare earth oxide equivalents mined last year.
In May this year, both the US and Australia announced policies to combat competition from China. Australia announced the extension of incentives in the 2024-2025 budget plan through a 10% production tax credit and pre-feasibility project funding for all critical minerals, including rare earths. At the same time, the Biden administration in the US imposed a 25% import tariff on rare earth magnets from China, effective from 2026.