Russian President Vladimir Putin has proposed a joint exploration of Russia’s rare earth metal deposits as part of a potential economic agreement with the United States, according to a report by Reuters. Putin claims that Russia’s reserves surpass those of Ukraine, a country currently negotiating a minerals deal with the US.
This proposal follows comments from US President Donald Trump, who expressed interest in acquiring rare earth minerals from both Russia and Ukraine. Trump stated that such an agreement would benefit both nations and could enhance the US’s access to these strategically important resources.
China currently controls about 95% of the global rare earth metals market, fueling concerns among other nations about their dependence on Chinese supply. These metals are essential for industries such as defense, aerospace, and consumer electronics. As a result, countries like the US and Russia are looking to develop their own rare earth resources to diversify global supply chains.
Russia possesses significant rare earth metal reserves, primarily in the Kola Peninsula and other regions. According to the US Geological Survey (USGS), Russia has the world’s fifth-largest reserves, estimated at 3.8 million metric tons. However, industry estimates suggest the country’s total reserves could be as high as 28.7 million metric tons.
Despite these vast deposits, Russia’s rare earth industry has struggled due to low domestic demand and intense competition from China. However, the Kremlin aims to secure up to 12% of the global rare earth market by 2030.
The country’s only operational rare earth extraction site, the Lovoozerskoye deposit in the Murmansk region, supplies raw materials to the Solikamsk Magnesium Plant, Russia’s sole producer of finished rare earth metals. The plant was seized from its previous owners in 2022 and transferred to the state-controlled nuclear corporation, Rosatom, in 2023.
Rosatom, which oversees Russia’s nuclear power industry, has been tasked with leading the development of rare earth production as part of a national initiative. The company is also working to expand its presence in other high-tech sectors.
Russia currently produces approximately 2,600 metric tonnes of rare earth metals per year, accounting for just 1% of global output. The Solikamsk plant processes around 8,000 tons of concentrate annually.
Putin recently convened a high-level meeting to discuss the future of Russia’s rare earth industry, highlighting its importance to the country’s economic development. His announcement came just hours after Trump revealed plans for major economic deals with Russia, set to be finalized on February 24.
The Russian president has also criticized delays in the development of Tomtor, the country’s largest rare earth deposit. He urged the project’s operator to either increase investment or seek state assistance. Both Tomtor, in Yakutia, and the Zashikhinskoye deposit, in Irkutsk, are considered key to Russia’s ambition to expand its rare earth production.
State-backed enterprises, including Rosatom and defense contractor Rostec, are expected to be the primary consumers of domestically produced rare earth metals.
Putin has also called on the Kurchatov Institute, Russia’s premier research center, to help restore the country’s expertise in rare earth extraction and processing—an area that suffered decline following the collapse of the Soviet Union.
