According to MiningNews.net, the Russian Ministry of Industry and Trade announced on August 12 that, in accordance with the industrial development plan adopted in March, Russia aims to increase its annual production of "Large-tonnage rare metals" (LARM) to 50,000 tons by 2030.
LARM is a term used by Russia to describe various critical minerals, including lithium, tungsten, molybdenum, niobium, and zirconium.
The Russian Ministry of Industry and Trade stated that the government’s so-called "Low-tonnage rare metals" (LORM) include tantalum, beryllium, germanium, gallium, and hafnium, with a target production of 80 tons by 2030. In 2024, Russia hardly produces these minerals.
Under this plan, the Russian government aims to build domestic processing capacity to produce refined products for the domestic market.
On July 2, Russian Minister of Industry and Trade Anton Alikhanov announced at a meeting of the Federation Council of the Parliament that the government is collaborating with investors to promote 20 projects in the field of critical minerals and rare earth metals.
The ministry is screening projects eligible for state support, including direct subsidies for research and development activities, low-interest soft loans, and reduced import and export tariffs. According to the industrial development plan, Russia intends to allocate 60 billion rubles ($744 million) from the federal budget to support several projects in this sector.
Currently, there is no consensus on the scale or feasibility standards of Russia’s critical mineral deposits.
In 2024, the Russian Federal Subsoil Resources Management Agency (Rosnedra) estimated that the country’s reserves of critical minerals and rare earth metals amount to approximately 28.8 million tons, ranking second in the world.
However, the U.S. Geological Survey (USGS) estimated that Russia’s rare earth mineral reserves in 2023 were only 1 million tons, ranking fourth after China, Vietnam, and Brazil.
In recent years, all rare earth projects approved in Russia have stalled, as most deposits are unprofitable to mine at current market prices.
For example, the Russian state-owned enterprise Rostec and its partners won a bid in 2014 for the Tomtorskoye project in Yakutia, northern Siberia. The project is considered one of the world’s largest rare earth deposits, with reserves of nearly 3.2 million tons, and was originally scheduled to commence production in 2019 or 2020.
However, Rostec withdrew from the project in 2019, and its future has remained uncertain ever since.
Another attempt to start rare earth production in Russia was made by fertilizer manufacturer Acron Group, which began extracting rare earth metal oxides from apatite-nepheline ore in the Murmansk region in 2016. This investment, estimated at $50 million, failed, and the plant ceased operations in 2021 due to low profitability.
Strategic Significance
Observers remain skeptical about whether Russia can expand rare earth metal production as planned.
"From a purely economic perspective, mining rare earth deposits in Russia makes no sense," said an anonymous source in the Russian mining industry. "This plan exists because, under the current geopolitical circumstances, we [Russia] do not want to rely on imports of these critical raw materials, even if they come from friendly countries."
"It can be argued that Russia continues rare earth production precisely because these minerals are of strategic importance to the national economy," the source added.
"One of the key issues in Russia’s rare earth metal industry is the lack of necessary technology," explained Igor Yushkov, a senior analyst at the National Energy Security Fund and an expert at the Russian Financial University. "Given the sanctions, Russia essentially needs to develop almost all the equipment required for mining and processing rare earth metals."
As a result, the cost of rare earth production in Russia is expected to rise further, Yushkov noted. While the state assistance promised under the recent industrial development plan may provide some support, it does not guarantee long-term profitability.
Yushkov believes that former U.S. President Donald Trump’s interest in rare earths could impact Russia’s rare earth industry.
In February, Russian President Vladimir Putin suggested that the United States might be interested in exploring joint rare earth metal deposit exploration in Russia.
Yushkov pointed out, "A U.S. withdrawal of sanctions on the transfer of rare earth mining technology and permission for American companies to invest in rare earth deposits could facilitate the rapid development of Russia’s rare earth metal industry."
Article Source: https://geoglobal.mnr.gov.cn/zx/kydt/zhyw/202508/t20250827_9966973.htm
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