The term rare earths is not based on the widespread belief that they are rare in occurrence. The metals are relatively abundant in the earth's crust. However, they are widely dispersed and rarely found and extracted in economically viable concentrations. High concentrations and thus favorable mining conditions are found in China.

China has the world's largest deposits and reserves and dominates world production, accounting for approximately 70 percent. Other significant mine production is located in the United States, Burma and Australia. In 2023, 43,000 metric tons were mined in the United States, 38,000 metric tons in Burma and 18,000 metric tons in Australia. By comparison, China mined 240,000 metric tons in 2023.

China also holds the leading position in global reserves. The country has estimated reserves of 44 million metric tons. Large deposits are located in Inner Mongolia. The USA has only 1.8 million metric tons left and already imported 72 percent of rare-earth compounds and metals from China between 2019 and 2022.

The distribution of rare earths has geopolitical implications. Myanmar, formerly known as Burma, has the world's second-largest reserves of rare earths and plays a significant role in China's strategic considerations in Southeast Asia. The dependency of Western countries is becoming apparent and entails supply risks.

In addition to the risks of dependency, there are also other issues surrounding rare earths. The mining and processing of rare earths often has a significant environmental impact. Due to the issues of dependency and the environment, efforts are being made to strengthen the circular economy in order to recover rare earths through recycling, for example from batteries, permanent magnets and fluorescent lamps.