Putin called for the preparation of an “action plan” for the “long-term development of the mining and production of rare earth metals” by December 1, reports the state-owned Russian news agency TASS.
Without these chemical elements, modern technology does not work: smartphones, wind turbines or electric cars. Although the market for rare earth elements is small compared to the market for heavy metals, their importance and demand are growing worldwide. In 2024, production amounted to 390 thousand. tone.
However, rare earth elements are mined only in a few places. Global supplies are volatile and competition for mining, refining and recycling is fierce.
Russia's only producer of finished rare earth metals, the Solikamsk Magnesium Plant, was taken over from its previous owners in 2022 due to accusations of illegal privatization and transferred to the state corporation Rosatom in 2023.
Rosatom, a Russian monopoly in the field of nuclear energy that is actively diversifying its activities into other high-tech sectors, is responsible for developing the production of rare earth elements as part of a special “national project”.
The Solikamsk plant sources loparite concentrate containing rare earth elements from Rosatom-controlled deposits in the Murmansk Oblast in northern Russia, the only active rare earth mining site in the country.
The plant currently processes approximately 8,000 tons of concentrate per year. Russian production of rare earth metals accounts for approximately 1%. world production, i.e. approximately 2,600 tons.
Russia's production plans
Less than two hours after Trump announced that on February 24 this year “major transactions with Russia in the field of economic development” will be carried out, Putin organized a meeting on rare earth metals, stating that this sector is a priority for Russia's economic development.
In February, Putin also spoke about rare earth elements and other metals at a conference organized by his longtime friend, scientist Mikhail Kovalchuk, president of the country's main research center, the Kurchatov Institute.
The Russian president then expressed regret at the USSR's loss of experience in extracting and using rare minerals and called on the Kurchatov Institute, named after the Soviet creator of the atomic bomb, and Rosatom to focus on restoring it.
Now the Russian leader is counting specifics. Putin called for the preparation of an “action plan” for the “long-term development of the mining and production of rare earth metals” by December 1, reports the state-owned Russian news agency TASS.
The European Union is between giants
China is now the market leader, producing around two-thirds of the world's supply and accounting for almost half of EU imports.
What does the European Union say about this? The European Commission welcomes all decisions that remove barriers to international trade – this is how European Commission spokesman Olof Gill comments on China's suspension of export controls on rare earth metals after talks with the US. However, it is not known whether the EU will benefit from such suspension.
Although the EU bloc is trying to diversify its sources, mining and processing rare earth metals is a complex and expensive process, which makes it largely dependent on Beijing.
The European Commission has selected 47 key projects that are to contribute to making the European Union independent of external supplies. These included two ambitious projects from Poland that could change the European industrial landscape.
