The “Three Rares” refer collectively to rare earth metals (17 types), rare metals (9 types), and dispersed rare metals (8 types). They are widely used in traditional sectors such as metallurgy, petrochemicals, glass and ceramics, electrical engineering, agriculture, pharmaceuticals, and light textiles. Moreover, they serve as crucial resources for the development of emerging industries—including new energy, new materials, energy conservation and environmental protection, aerospace, and information electronics. In the future, international competition over resources will shift from bulk, pillar minerals to the “Three Rares.” The “Three Rares” are key resources that will enable China to secure a leading position in both science and technology and the economy.

　　First, China is the world’s largest country in terms of reserves, production, consumption, and exports of rare earths, meeting 85% of global demand with its 36% of the world’s rare earth resources.

　　1. China is the world’s largest producer of rare earth resources, yet heavy rare earths account for less than 1% of its reserves. The distribution of these resources exhibits a characteristic pattern: “lighter in the north, heavier in the south.”

　　As of the end of 2009, China’s identified rare-earth resource reserves totaled 83.96 million tons, including 18.59 million tons of proven reserves, accounting for approximately 36% of the world’s total. The rare-earth resources are predominantly light rare earths, with heavy rare-earth resources accounting for less than 1%.

　　China’s rare earth resources are concentrated, exhibiting a characteristic of “light rare earths in the north and heavy rare earths in the south.” Light rare earth deposits are primarily located in northern regions such as Baotou in Inner Mongolia and Liangshan in Sichuan, while heavy rare earth deposits are mainly found in southern regions including Ganzhou in Jiangxi and Longyan in Fujian. According to the national assessment of mineral resource potential, the predicted resource potential amounts to 360 million tons, with major reserves concentrated in Inner Mongolia, Guangdong, Jiangxi, and Sichuan.

　　2. China is the world’s largest producer, consumer, and exporter of rare earths. Over-exploitation of these resources has significantly impacted the ecological environment of mining areas.

　　In 2015, China’s output of rare-earth mineral products reached 105,000 tons, accounting for 85% of the global total. The country’s production of rare-earth permanent magnet materials, luminescent materials, hydrogen-storage materials, and polishing materials each accounted for more than 70% of the world’s total. Consumption amounted to 65,000 tons, representing 65.0% of the global total, while exports totaled 35,000 tons, accounting for 90% of the global total.

　　Currently, China, with 36% of the world’s rare-earth resources, supplies 85% of the global market. After more than half a century of intensive mining, the reserves of these resources have been steadily declining, and the resources in major mining areas are rapidly depleting. Issues such as prioritizing the extraction of high-grade ores while neglecting low-grade ones, favoring easy-to-extract deposits over difficult-to-extract ones, and wasteful resource utilization have become particularly prominent. For example, at the Baotou rare-earth mine in northern China, the utilization rate for mining and beneficiation is only 10%, making it extremely low. In southern China, long-term large-scale mining of ion-adsorption-type rare-earth deposits has damaged surface vegetation in mining areas, leading to significant soil and water erosion, soil contamination, and acidification. In some cases, this has even triggered landslides, river blockages, and sudden environmental pollution incidents.

　　II. Among rare metals, resources of lithium, beryllium, niobium, tantalum, strontium, and rubidium are relatively abundant but have poor endowment quality; resources of zirconium, hafnium, and cesium are scarce.

　　China is relatively rich in rare metals such as lithium, beryllium, niobium, tantalum, strontium, and rubidium, with proven reserves ranking among the highest in the world. However, resources of zirconium, hafnium, and cesium are scarce, and domestic demand largely relies on imports.

　　1. Lithium, beryllium, niobium, tantalum, strontium, and rubidium have been found to possess large resource reserves, but their resource endowments are relatively poor, making development and utilization challenging. As a result, large quantities of raw lithium ore are being imported.

　　The identified resource reserves, equivalent to 5.4 million tons of metallic lithium, rank fifth in the world. Among these reserves, hard-rock lithium (Li2O) amounts to 3.126 million tons, primarily concentrated in Sichuan, Jiangxi, and Hunan provinces; while brine lithium (LiCl) totals 23.634 million tons, mainly found in Qinghai, Tibet, and Hubei provinces. The projected potential of lithium resources, when converted into metallic lithium, is as high as 17.6 million tons, with a resource exploration rate of 25.4%. Eighty-seven percent of China’s brine lithium and 60.5% of its hard-rock lithium are located in ecologically fragile areas of the Qinghai-Tibet Plateau, where development and utilization face significant environmental constraints.

　　In 2015, China’s lithium product output reached 61,400 tons of lithium carbonate equivalent, ranking second in the world and accounting for 38.5% of global production. Its consumption totaled 78,700 tons of lithium carbonate equivalent, placing it first worldwide and accounting for 37.2% of global consumption. China relies heavily on imports for lithium ore, with an external dependence rate of 76% for raw ore. Additionally, the country also needs to import products such as lithium carbonate and lithium chloride from abroad.

　　Beryllium:

　　The proven reserves of beryllium (BeO) amount to 574,000 tons, of which the measured reserves stand at 39,000 tons, placing China second in the world. These reserves are primarily concentrated in Xinjiang, Inner Mongolia, Sichuan, and Yunnan. Although China boasts abundant beryllium resources, there is only one independent ore deposit—in Keketohai, Xinjiang—whose grade is relatively low and which occurs mainly in association with lithium, rare earth elements, niobium, and tantalum. Moreover, most of these mines are located in remote and border regions, presenting significant technical challenges for mining and beneficiation and resulting in high production costs.

　　In 2015, China's production of beryllium ore products reached 51 tons (in terms of metal content), ranking second in the world and accounting for 14.6% of global output. The country’s dependence on foreign sources for raw beryllium ore stood at 50%, with most of the raw beryl being imported from Kazakhstan. Beryllium consumption totaled 95 tons, primarily in the form of beryllium-copper alloys; high-tech beryllium alloys are mainly imported from countries such as the United States and Japan.

　　Niobium:

　　The identified resource reserves (Nb2O5) amount to 5.38 million tons, of which the measured reserves stand at 814,000 tons. These reserves are primarily located in Inner Mongolia, Jiangxi, Sichuan, and Hunan. China boasts relatively abundant niobium mineral resources; however, the ores have low grades, are deeply buried, and exhibit poor selectivity. Currently, only the Boluo niobium mine in Guangdong is in production.

　　In 2015, China's niobium consumption totaled 20,565 tons (in terms of metal content), accounting for 26.3% of the global total. Niobium concentrate production reached 52 tons, with an external dependence as high as 99.7%. The main sources of imports are Brazil and Canada.

　　Tantalum:

　　The identified resource reserves (Ta2O5) amount to 142,000 tons, of which the measured and indicated reserves total 27,000 tons. These reserves are primarily located in Jiangxi, Sichuan, Hunan, and Inner Mongolia. Although China boasts relatively abundant tantalum resources, most of these deposits are co-associated with other minerals, have low grades, and are difficult to exploit. Following the closure of the Nanping mine in Fujian in 2014, only the Yichun tantalum mine in Jiangxi remains in production.

　　In 2015, China's tantalum consumption totaled 682 tons, while tantalum concentrate production reached 123 tons. The country’s dependence on foreign sources for raw ore stood at 82%, with Brazil and Australia being the primary import sources.

　　Strontium:

　　The proven reserves of celestite (strontium sulfate) amount to 55.83 million tons, including 20.84 million tons of measured and indicated reserves, ranking first in the world. These reserves are primarily located in Qinghai, Chongqing, and Hubei provinces. The grade of celestite mined in China is relatively low; for instance, the grade of the largest celestite deposit—the Dafengshan strontium mine in Qinghai—ranges between 35% and 60%, whereas the grade of celestite imported from Iran typically exceeds 85%.

　　China is the world’s largest producer of strontium carbonate, accounting for 40% of global output, 80% of which is exported. Due to poor domestic strontium ore endowments, celestite must be imported in large quantities, with Iran being the primary source of these ores.

　　Rubidium:

　　The proven resource reserves (Rb2O) amount to 1.794 million tons, of which the measured reserves stand at 323,000 tons. These reserves are primarily located in Jiangxi, Hunan, and Guangdong provinces. Although China boasts abundant rubidium resources, no independent ore deposits have yet been discovered. The quality of these resources is relatively poor, making their exploration and development challenging. Consequently, most of the refined rubidium concentrate is imported, with Zimbabwe being the primary source.

　　2. Zirconium, hafnium, and cesium resources are severely scarce, with an external dependence rate exceeding 95%. The situation regarding resource security is extremely challenging for zirconium (and hafnium):

　　The identified reserves of zirconium resources (zircon) amount to 4.474 million tons, of which the proven reserves stand at 1.172 million tons. The identified reserves of hafnium total 2,978.6 tons, with proven reserves amounting to 681 tons. Zirconium (and hafnium) resources are primarily concentrated in Hainan Province. Hafnium is a byproduct mineral associated with zirconium and is mainly recovered during the zirconium production process.

　　In 2015, China’s production of zircon sand was concentrated solely in the Wenchang and Wanning areas of Hainan Province, with an output of approximately 30,000 tons. Meanwhile, zircon ore consumption reached 5.8 million tons, over 95% of which had to be imported, primarily from Australia and South Africa. While China imports large quantities of zircon sand, it exports substantial amounts of lower-end products such as zirconium oxychloride, zirconium silicate, and zirconium oxide. Constrained by Hainan’s tourism-oriented development strategy, domestic zircon ore production will gradually decline, further increasing China’s external dependence on zirconium (and hafnium).

　　Cesium:

　　The proven reserves of cesium oxide (Cs2O) amount to 396,000 tons, of which the measured reserves stand at 31,000 tons. These reserves are primarily located in Jiangxi, Hunan, and Tibet. Globally, most cesium producers operate on a make-to-order basis, meaning production closely matches consumption. China's cesium industry has a high degree of external dependence on raw materials; virtually all of its required pollucite is imported from Zimbabwe, with annual import volumes reaching 5,000 tons.

　　III. Among the rare and dispersed metals, gallium, germanium, indium, cadmium, and thallium are abundant in resources, while rhenium, selenium, and tellurium face insufficient resource security.

　　1. China ranks first in the world in terms of reserves, production, and export volume of gallium, germanium, and indium; its production and exports directly influence the global supply landscape.

　　Gallium: Reserves have been confirmed at 337,000 tons, including 44,000 tons of measured and indicated reserves, accounting for approximately 75% of the world’s total. The major reserves are located in Henan and Guizhou provinces. In 2015, gallium production reached 150 tons, representing 76% of global output, with nearly three-quarters being exported abroad. Germanium: Reserves have been confirmed at 6,922 tons, including 1,099 tons of measured and indicated reserves, accounting for roughly 51% of the world’s total. The primary reserves are found in Inner Mongolia and Yunnan provinces. In 2015, germanium production totaled 120 tons, constituting 70% of global output, of which 70% was exported. Indium: Reserves have been confirmed at 15,432 tons, including 1,469 tons of measured and indicated reserves, accounting for about 50% of the world’s total. The main reserves are located in Guangxi and Qinghai provinces. In 2015, indium production reached 370 tons, representing 49% of global output; domestic consumption, however, was only around 60 tons.

　　2. Cadmium and thallium resources are relatively abundant. Due to the large consumption of cadmium, substantial imports are required. Thallium, being highly toxic, has limited application demand.

　　Cadmium: Reserves have been identified at 351,000 tons, including 29,856 tons of measured reserves, accounting for approximately 18% of the global total and placing China in first place worldwide. The major reserves are concentrated in Yunnan, Hunan, Sichuan, and Guangxi provinces. In 2015, China’s cadmium metal production reached 8,090 tons, ranking first globally and accounting for 33.4% of the world’s total; net imports of metallic cadmium totaled 5,547 tons, representing 54% of the global total. Thallium: Reserves have been identified at 11,818 tons, including 8 tons of measured reserves, placing China fifth globally. The primary reserves are located in Yunnan and Anhui provinces. China, Kazakhstan, and Russia are the main producers of primary thallium. Due to its well-known extreme toxicity, both the production and consumption of thallium remain relatively low. In 2015, China’s net exports of unalloyed powdered thallium amounted to 6.4 tons.

　　3. Rhenium, selenium, and tellurium are primarily recovered from the copper-molybdenum production process. Their output is constrained by the production of the primary mineral species, and resource security is insufficient.

　　Rhenium: Reserves have been confirmed at 190.4 tons, with 36.5 tons classified as measured reserves, accounting for approximately 1.5% of the world’s total. The primary reserves are located in Shaanxi and Fujian provinces. In recent years, China’s rhenium production has remained around 5 tons per year, while annual consumption has hovered around 10 tons, resulting in a foreign dependency rate of 50%. In recent years, China has made significant progress in exploring copper-molybdenum deposits. Strengthening comprehensive exploration and evaluation of associated rare and dispersed elements such as rhenium could significantly enhance China’s security of rhenium resources. Selenium: Reserves have been confirmed at 16,622 tons, including 52.8 tons classified as measured reserves. The major reserves are concentrated in Gansu, Xinjiang, Hubei, and Hunan provinces. The Yutangba deposit in Enshi, Hubei, is the only independently proven selenium deposit in China. Ninety percent of China’s selenium is recovered from copper ores, with annual production ranging between 300 and 400 tons. Net imports amount to 1,242 tons, primarily sourced from Japan, South Korea, and Belgium. Selenium consumption stands at 1,500 tons, accounting for more than 50% of global demand. Tellurium: Reserves have been confirmed at 6,625 tons, with 4,727 tons classified as measured reserves, placing China third globally in terms of reserves. The major reserves are located in Jiangxi, Gansu, and Sichuan provinces. The Dashiugou tellurium-bismuth-sulfide iron ore deposit in Shichong, Sichuan, is currently the only known primary, independent tellurium deposit reported worldwide. Annual consumption is about 80 to 90 tons, and domestic production cannot fully meet demand; the shortfall is covered by imports ranging from 10 to 70 tons. Fourth, the level of advanced technology for deep processing and application of “three rare” resources still lags considerably behind that of the world’s most advanced countries, and overall, China remains positioned at the lower end of the industrial value chain.

　　1. We are leaders in rare-earth, tantalum mining, beneficiation, and smelting technologies, but there is still a significant gap compared to international advanced levels in new materials development and high-end manufacturing.

　　China has developed a number of technologies in the fields of rare-earth mining, beneficiation, smelting, and separation that have reached internationally advanced levels. Its unique mining and beneficiation processes, along with its cutting-edge separation technologies, have laid a solid foundation for the exploration and utilization of rare-earth resources. However, research and development of rare-earth materials and devices lag behind; there are relatively few new rare-earth materials and device manufacturing technologies protected by intellectual property rights. Currently, production and exports mainly focus on low-end products such as smelted and separated products, rapid-solidification permanent magnet sheets, neodymium-iron-boron alloys, and hydrogen-storage alloys, while high-end products like advanced LEDs, high-performance magnetic shafts, and magnetic gears remain scarce.

　　China’s tantalum smelting technology has risen to among the world’s leading ranks. Tantalum powder manufacturers, exemplified by Oriental Tantalum Industry, have gradually earned international recognition for the quality and performance of their capacitor-grade tantalum powder. The reduction technology, post-processing techniques, and chemical, physical, and electrical properties of their high-specific-capacitance tantalum powder have all reached world-class advanced levels. However, China still lags behind in high-end manufacturing technologies. Core technologies for high-end products such as tantalum capacitors, tantalum grinding materials, tantalum superalloys, and tantalum optical glass remain firmly in the hands of developed countries like Japan. Moreover, domestic demand for tantalum is relatively low, and most of the smelted products—such as capacitor-grade tantalum powder and tantalum wire—are exported to foreign markets.

　　2. Most rare and dispersed metals are used to produce low-end products.

　　High-value-added, deeply processed lithium products largely rely on imports. China has basically established a modern lithium industry based on lithium extraction from ore and brine, covering a range of products including lithium carbonate, lithium chloride, lithium hydroxide, and metallic lithium. However, the technology for developing and utilizing lithium resources remains relatively backward, and most of the produced lithium products are basic industrial-grade lithium carbonate and lithium hydroxide. Products with higher technological content—such as battery-grade lithium carbonate, high-purity lithium carbonate, anhydrous lithium chloride, and high-purity metallic lithium—lack competitiveness and thus require substantial imports from abroad.

　　In the entire zirconium industry chain, zirconium oxychloride serves as the basic raw material for producing and processing other zirconium products. Globally, 90% of zirconium oxychloride production comes from China, while value-added products such as composite zirconium oxide and metallic zirconium (nuclear-grade zirconium) are mainly imported.

　　Indium tin oxide (ITO) targets are a major deep-processing product of indium, accounting for more than 90% of indium consumption. In China, indium products are primarily in the form of indium ingots, while the technology for processing high-end products such as ITO targets and high-purity indium has long been monopolized by countries like Japan and the United States.

　　More than 60% of China's gallium applications are in the production of low- to mid-range (4 inches or smaller) gallium arsenide. The technology for producing 4- to 6-inch gallium arsenide is still unstable; high-end gallium arsenide for microwave applications relies heavily on imports.