The rare earth metals (REM) industry plays an important role in the modern global economy due to the extensive use of these elements in high-technology sectors. Russia possesses substantial REM reserves, giving the country a major competitive advantage: a strong mineral resource base capable of meeting growing demand in both domestic and global markets, where China remains the dominant player. China accounts for more than 70 % of global REM production, while Russia’s share does not exceed 1 %. In recent years, countries worldwide have paid increasing attention to the REM supply chain, intensifying international competition in this sector. In this context, the development of Sino-Russian cooperation represents a key factor in strengthening the two countries’ positions in the global market and should be based on collaboration in strategically significant areas for both sides. The purpose of this study is to explore options for implementing a Sino-Russian partnership in strategic sectors, using the REM industry as a case study. The Russian Arctic, where REM deposits unique in terms of reserves and concentrations of valuable components are concentrated, is considered a potential site for the implementation of technological cooperation. The study is based on a critical analysis of Russia’s key REM deposits, with particular attention to Arctic sites, as well as a comparative analysis of the Russian and Chinese consumer markets and forecasts of their development. These analyses form the basis for proposed options for technological cooperation between the two countries. The findings indicate that the most promising form of Sino-Russian partnership is a consortium model, similar to joint projects such as Yamal LNG and Power of Siberia. This format enables Russia to attract investment and technologies, while allowing China to secure access to new sources of raw materials and strengthen its presence in the Arctic.