Rare Earth Separation and Processing
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Rare earth processing turns mined ore into separated oxides and metals through concentration, acid cracking and solvent extraction, and the last step is the hardest because the 17 elements are chemically almost identical. Solvent extraction passes a solution of mixed rare earths through chains of mixing and settling units, and a conventional plant needs thousands of stages, according to a presentation from the EU's NEMO project. The United States has about 15,000 tonnes a year of separation capacity against demand of roughly 45,000 tonnes, according to a 2026 European Parliament study.
thousands
of extraction, scrubbing and stripping stages in a conventional rare earth separation process
15,000 t
annual US rare earth separation capacity against roughly 45,000 t of demand
8,900 t
US production of rare earth compounds and metals in 2025, up from 120 t in 2021
10 years
term of the Malaysian operating license Lynas received from 3 March 2026, with conditions on residue management
Source: Lynas 2026 Annual Report
What are the stages from ore to metal?
There are five main stages, and the table shows what each does and what the sources say about it. The order is the same for most ores, but the chemistry differs by mineral.
| Stage | What happens | What the sources say |
|---|---|---|
| 1. Mining and concentration | Ore is crushed and the rare earth minerals are concentrated, for example by flotation | The USGS reports that bastnaesite is mined at Mountain Pass, California, and monazite is produced from heavy-mineral sands in the south-east; heavy rare earths are elevated in some ores, including ion-adsorption clays |
| 2. Cracking and leaching | The concentrate is roasted and leached with strong acid to put the rare earths into solution | Lynas runs a cracking and leaching process in Malaysia and treats mixed rare earth carbonate made at Kalgoorlie |
| 3. Solvent extraction | Solutions are agitated with an organic solvent in mixer-settler units chained together so each element drifts to a different stream | The NEMO project describes thousands of stages in conventional plants because neighbouring elements behave so similarly |
| 4. Oxide production | Each purified stream is precipitated and calcined into an oxide | In the year to June 2026 Lynas produced 13,089 t of oxides, including 7,260 t of NdPr, and 19 t of dysprosium and terbium in the June quarter; its first samarium oxide came in March 2026 |
| 5. Metal and alloy making | Oxides are reduced to metals and alloys that magnet makers use | Lynas signed a framework with LS Eco Energy in March 2026 for a metal-making facility in Vietnam, and binding cross-subscription agreements of about A$29 million each followed in July 2026 |
Sources: USGS rare earths, Lynas 2026 Annual Report, Lynas June 2026 quarterly report, NEMO project presentation. This is a simplified flow; plants differ.
Why is separation so difficult?
Separation is difficult because the rare earths have nearly identical chemistry, so each solvent extraction stage improves purity only slightly and many stages are needed. Dedicated expertise is needed too: China banned exports of rare earth processing and refining technology in 2023, according to the Congressional Research Service, and its October 2025 controls covered related equipment and technology, which were suspended in November for a year. The plants that exist outside China have been built over decades, and the Bloomsbury Intelligence and Security Institute notes that Western producers left mid-stream processing from the 1990s.
What happens to the waste?
Rare earth ores often contain thorium and uranium, so cracking and leaching produce radioactive residues that must be managed. Lynas's 10-year Malaysian license, renewed from 3 March 2026, requires an alternative cracking process so that the plant no longer produces water leach purification residue with an activity concentration above 1 becquerel per gram after 2 March 2031, with the modification to start by March 2028.
How much processing capacity is there outside China?
Capacity outside China is small but growing. The USGS reports that US production of rare earth compounds and metals rose to an estimated 8,900 t in 2025 from 120 t in 2021, and that at least five companies were developing commercial-scale heavy rare earth processing. Projects and companies are listed on the separation capacity page. For the element groups see light and heavy rare earths, and for the wider processing picture why China dominates processing.
Frequently asked questions
How are rare earths separated?
Rare earths are separated mainly by solvent extraction. The ore is concentrated, cracked with acid and leached, and the solution passes through chains of mixing and settling units that move each element into a different stream, repeated over very many stages.
Why is rare earth separation so hard?
Rare earth separation is hard because the elements have nearly identical chemistry. Each solvent extraction stage improves the split only slightly, so a conventional process uses thousands of stages according to the EU NEMO project.
Is rare earth processing radioactive?
Rare earth processing can produce radioactive residues because many ores contain thorium. Lynas's Malaysian license renewed in March 2026 for 10 years requires an alternative cracking process by 2031 so that the plant no longer produces residue above 1 becquerel per gram.
How much rare earth separation capacity does the US have?
The US has about 15,000 tonnes a year of rare earth separation capacity against domestic demand of roughly 45,000 tonnes, according to a 2026 European Parliament study. US production of rare earth compounds and metals was about 8,900 tonnes in 2025.
Sources
Read on October 12, 2026. Figures on this page come from these documents; where a number is an estimate, the source says so.
- USGS Mineral Commodity Summaries 2026: Rare earths
- Lynas Rare Earths: 2026 Annual Report and Appendix 4E (26 August 2026). Read on 14 October 2026
- Lynas Rare Earths: Quarterly report for the period ended 30 June 2026 (22 July 2026). Read on 14 October 2026
- EU NEMO project: rare earth solvent extraction presentation (2022)
- Bloomsbury Intelligence and Security Institute (30 September 2026)
- Congressional Research Service: Rare Earth Elements and U.S. Supply Chains (IF13171)
