Australia is on track to become the world’s second largest producer of rare earth minerals, behind China. While mining is expanding across multiple states, domestic processing and refining of these critical elements remain a key challenge for the industry.

Melbourne

Rare earth minerals, despite their name, are not particularly scarce and consist of 17 elements vital for manufacturing products such as smartphones, laptops, renewable energy technologies, and military equipment. Australia is positioned to become the world's second largest producer of these minerals, with mining activities already taking place in Victoria, Queensland, New South Wales, and Western Australia. South Australia is also repurposing old smelters to support critical mineral production.

However, Australia faces challenges in the separation and refinement of rare earth elements, a process that is complex and typically performed in China. The high cost of manufacturing finished products like magnets domestically means Australia is unlikely to become a major producer of these end products. Environmental concerns persist, but the demand for rare earth minerals continues to grow, making it a competitive industry globally.

Australia set to become world's second largest rare earth producer

Rare by name, but not by nature. The thing to know is rare earths aren't actually that rare. It's a pretty historical name. You may have seen the rare earth elements on the periodic table. There are 17 of them, critical minerals that are mined and then processed, or refined, to make magnets used in products like smartphones and laptops, renewable energy technology like wind turbines and electric cars, even military-grade weapons. Nobody's getting rich selling rare earths, but the things you can make out of them are incredible. It's almost one of those things that you discover them and then you find other uses. Australia is on track to become the world's second biggest producer of rare earth minerals behind China. Mining has already started, with Victoria, Queensland, New South Wales and WA all digging for various elements, while South Australia is in the process of transforming old Port Pirie smelters to produce critical minerals. But where Australia falls short is in the separating of these elements once they're out of the ground. So that separation is really difficult, commonly done in China. It's just that we probably won't ever be making magnets here because we're too expensive. As with all mining projects, there are legitimate environmental concerns, but if done right, it's an in-demand product. It is a race, because if we just sit back and, you know, we're the lucky country and let somebody else go ahead and develop, then sort of the wing goes out of the market and it's like, oh, shame we missed that. Taylor Ryan, 10 News.

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