1. Limited production capacity - Rare Element Resources Ltd has a relatively small production capacity compared to its peers, which limits its ability to meet growing demand for rare earth elements.

2. High production costs - The company's production costs are relatively high compared to its peers, which reduces its profitability and competitiveness in the market.

3. Limited product portfolio - Rare Element Resources Ltd has a limited product portfolio, which limits its ability to cater to diverse customer needs and preferences.

4. Dependence on a single mine - The company's operations are heavily dependent on a single mine, which increases its exposure to operational risks and supply chain disruptions.

5. Limited geographical presence - Rare Element Resources Ltd has a limited geographical presence, which limits its ability to tap into new markets and expand its customer base.

6. Limited financial resources - The company has limited financial resources, which restricts its ability to invest in research and development, expand its production capacity, and pursue strategic acquisitions.

7. Regulatory challenges - The rare earth mining industry is subject to strict environmental and regulatory requirements, which can increase the company's compliance costs and limit its ability to operate in certain regions.