Tulani Ngwenya
PRETORIA, South Africa – In the wake of strained US-Ukraine relations over a contentious minerals deal, Russian President Vladimir Putin has convened a high-level meeting to accelerate Russia’s rare earth metals industry. This strategic move aims to position Russia as a key global supplier of these critical resources.
During the meeting at Novo-Ogaryovo on February 24, 2025, Putin stressed the importance of rare and rare-earth metals in modern industries, including microelectronics, energy, and defence sectors. He highlighted the necessity for Russia to develop a full-cycle production system from extraction to the manufacturing of high-tech products to enhance the nation’s competitiveness and economic growth. This initiative is part of the newly launched national project “New Materials and Chemistry,” which seeks to bolster Russia’s industrial capabilities in emerging technologies.
Russia currently holds the world’s fifth-largest reserves of rare earth metals, estimated at 28.7 million tonnes, with 3.8 million tonnes under active development. Despite these substantial reserves, the country’s production has been limited, mining only 2,500 tonnes of concentrate annually, primarily due to insufficient processing capacities. To address this, Putin called for the revitalisation of Soviet-era expertise in rare earth extraction and the expedited development of key projects, such as the Tomtor and Zashikhinskoye deposits, which have faced delays.
In a notable geopolitical development, Putin proposed potential collaboration with the United States in the rare earth sector. He suggested joint exploration ventures, highlighting that Russia’s rare earth deposits surpass those of Ukraine. Kremlin spokesman Dmitry Peskov reinforced this openness to cooperation, stating, “The Americans need rare earth metals. We have a lot of them.” This proposal comes on the heels of a failed minerals agreement between the U.S. and Ukraine, where President Donald Trump pressured Ukrainian President Volodymyr Zelenskyy into a deal perceived by many as exploitative.
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The global rare earth metals market is currently dominated by China, which controls approximately 60% of global production. Russia’s strategic initiatives aim to reduce this dependency by increasing its market share to 10-12% by 2030. However, challenges persist, including low domestic demand and the need for significant investment in processing infrastructure. State corporations like Rosatom are expected to play pivotal roles in consuming and developing these resources domestically.
As the geopolitical landscape shifts, Russia’s proactive stance in developing its rare earth metals industry not only seeks to bolster its economic resilience but also to capitalise on emerging opportunities resulting from strained US-Ukraine relations. This strategic positioning could redefine global supply chains and alter the balance of power in critical technological sectors.
