Abstract Rare earth elements (REEs) are vital to global social and economic development. As the largest supplier of REEs worldwide, China’s previous unsustainable and extensive mining practices have led to a decline in ore quality and availability. In response, various policies and regulations have been implemented to safeguard domestic REE resources. This study investigates the material, cost, and monetary value flows of REEs in China from 2015 to 2022 through combining Material Flow Analysis and Material Flow Cost Accounting. During the study period, China’s cumulative concentrate inflows of REEs reached 1,238 kilotons, with domestic mining being the primary source of supply. System and material costs dominated REE production costs, constituting over 95% of total expenses. Production of heavy rare earth oxides incurred significantly higher costs (45,015 USD/ton) compared to light rare earth oxides (3,912 USD/ton). Functional materials, particularly magnetic materials, had the largest cost and monetary value flows, while rare earth compounds exhibited the highest added value (7.57 billion USD). Over this period, China transitioned from a net exporter to a net importer of REEs, reflecting a negative physical flow balance but a positive monetary value flow balance. China’s dependence on external REEs increased, with net imports of concentrates and primary products growing by 3.27-fold and 8.02-fold, respectively. The study offers valuable insights to foster sustainable rare earth elements industry development in China.
Ge et al. (Wed,) studied this question.