The invention relates to a rare earth containing low-cost seamless steel pipe for the L415N pipeline and a production method thereof, and belongs to the technical field of metallurgy and moulding. The raw material is composed of the following components in percentage by weight: 90 wt% of blast furnace molten iron and 10 wt% of high-quality waste steel. The pipe blank comprises the following chemical components in percentage by weight: 0.06 to 0.13 wt5% of C, 0.15 to 0.35 wt% of Si, 1.30 to 1.60 wt% of Mn, not more than 0.020 wt% of P, not more than 0.010 wt% of S, 0.20 to 0.40 wt% of Cr, 0.05 to 0.10 wt% of V, 0.01 to 0.03 wt% of Ti, 0.01 to 0.04 wt% of Al, 0.0005 to 0.010 wt% of rare earth (RE), less than 0.10 wt% of Cu, and the balance being substrate Fe and undetectable trace impurity elements. The technology process orderly comprises the following steps: molten iron pre-treating, smelting in a top-bottom combined blowing converter, refining in a LE furnace, VD vacuum processing, round continuous casting, cutting, heating the pipe blank, perforating, continuous rolling, sizing (stretch reducing), cooling, sawing, flaw detecting, and chamfering. The mechanical properties of the product are as follows: the yield strength is 420 to 460 MPa, the tensile strength is 560 to 620 MPa, the impact value is more than or equal to 80 J / cm<2>, the grain size is more than or equal to 8.5 grade, and the shear ratio is more than or equal to 80%. The product has the advantages of high toughness matching degree, small crystal grain, and low production cost in the condition of low carbon equivalence.