US Rare Earths Investment Builds Ex-China Supply Chain Dominance

US rare earths

US rare earths investment has accelerated dramatically over the past year, giving American-backed companies growing control over major mining, refining, metal, alloy and magnet assets outside China. Government loans, grants, offtake agreements and direct investments are providing the capital needed to acquire strategic companies across the global supply chain.

US rare earths investment is no longer focused only on developing domestic mines. US-backed companies are buying established processing and manufacturing assets in Europe, Australia, Brazil, South Korea and other markets, creating an international network centred increasingly on American capital.

US rare earths investment gained further momentum after Energy Fuels agreed to acquire German permanent magnet producer Vacuumschmelze for $1.9bn. The transaction follows a conditional $725mn US Department of Defense loan supporting Energy Fuels' rare earth processing expansion.

Energy Fuels had already agreed to acquire Australian Strategic Materials for $299mn. ASM owns the Korean Metals Plant, one of the relatively few commercial rare earth metal and alloy facilities operating outside China.

US Capital Is Consolidating the Mine-to-Magnet Chain

Washington's support accelerated after China tightened export controls on critical rare earth products, exposing the vulnerability of western magnet and defence supply chains.

One of the largest interventions came through the US government's support package for MP Materials, which combined a price floor, guaranteed offtake and direct Department of Defense investment.

Federal financing has since spread across the downstream chain. Vulcan Elements and ReElement Technologies received support for magnet manufacturing and refining, while USA Rare Earth secured a $1.6bn assistance package for its integrated mine-to-magnet strategy.

Phoenix Tailings has also received a $500mn defense-backed loan for rare earth refining and metallization.

Government support gives these companies more than operating capital. It improves financing certainty and strengthens their ability to bid aggressively for overseas strategic assets.

USA Rare Earth's $2.8bn acquisition of Brazilian producer Serra Verde is a clear example. Serra Verde is developing one of the more advanced heavy rare earth supply sources outside China and targets 6,400 t/yr of rare earth oxide production by 2027.

USAR had previously acquired UK-based Less Common Metals for $125mn, adding rare earth metal and alloy production to its portfolio.

The strategy therefore extends beyond securing ore. American-backed companies are assembling the intermediate and downstream capabilities required to convert rare earth resources into metals, alloys and finished permanent magnets.

Europe and Other Western Markets Risk Losing Strategic Control

The acquisition wave is reshaping the balance of power across the non-China rare earth industry.

Europe still retains important capabilities, including Solvay's rare earth oxide production in France. But several strategically important downstream assets are now controlled by North American companies.

Vacuumschmelze would become another major example if the Energy Fuels transaction closes, while Neo Performance Materials' Estonian magnet operations are already North American-owned.

US-backed investment is also influencing project development decisions outside the country. Companies seeking financing increasingly see access to US government funding and customers as more attractive than relying solely on European or national support schemes.

This creates a strategic challenge for Europe, the UK and other allied economies. They may successfully diversify supply away from China while simultaneously allowing ownership and commercial control to become concentrated in US-backed groups.

The result is an emerging ex-China rare earth system that is geographically diversified but financially and strategically centred increasingly on Washington.

The US may therefore achieve supply-chain influence without directly controlling every mine or refinery on American soil. Government-backed capital can secure long-term offtake, ownership stakes and processing capacity across allied countries.

The Metalnomist Commentary

The US is building rare earth influence through capital rather than geography. The emerging risk for Europe and other allies is that reducing dependence on China could create a new dependence on US-controlled processing, financing and magnet capacity.

Energy Fuels Rare Earth Processing Could Receive $725mn US Defense Loan

Energy Fuels

Energy Fuels rare earth processing plans could receive up to $725mn in conditional financing from the US Department of Defense, supporting a major expansion of domestic separation, refining and rare earth metal production.

Energy Fuels rare earth processing strategy centres on its White Mesa mill in Utah, where the company plans to process monazite concentrates into light and heavy rare earth products alongside uranium and vanadium.

Energy Fuels rare earth processing expansion is strategically important because it targets several stages where the US remains heavily dependent on overseas capacity. The company ultimately plans to connect oxide production with domestic rare earth metal and alloy manufacturing.

The proposed loan remains subject to due diligence, final agreements and closing conditions, but it could substantially accelerate Energy Fuels' transition from mineral developer into an integrated critical materials producer.

White Mesa Expansion Targets NdPr and Heavy Rare Earths

The first phase at White Mesa is designed to process up to 10,000 t/yr of monazite concentrate and produce around 1,000 t/yr of neodymium-praseodymium oxide.

The operation will also generate concentrate containing samarium and other heavy rare earth elements.

Energy Fuels is installing additional equipment to process mixed rare earth carbonates and produce separated light and heavy rare earth oxides. Commercial production from this expansion is scheduled for mid-2027.

Phase 2 would significantly increase output. Planned additional capacity includes 5,513 t/yr of NdPr, 48 t/yr of terbium and 165 t/yr of dysprosium.

The expansion would also produce 748 t/yr of concentrate containing samarium and other heavy rare earths.

These materials are strategically important for high-performance permanent magnets used in defence, aerospace, electric vehicles, robotics and other advanced technologies.

The Phase 2 project carries an estimated capital cost of $419mn. Energy Fuels estimates NdPr operating costs of $29.39/kg using feedstock from its Vara Mada project in Madagascar.

Global Feedstock and US Alloy Capacity Build an Integrated Chain

Energy Fuels is developing several heavy mineral sands projects that could provide monazite and other rare earth-bearing feedstocks.

The company fully owns Vara Mada in Madagascar and Bahia in Brazil, while holding a 49% interest in the Donald project in Australia.

This geographic diversification could give White Mesa access to multiple sources of feedstock rather than relying solely on US mine production.

The company also plans to move further downstream through the proposed acquisition of Australian Strategic Materials.

That transaction would support development of the American Metal Plant in the US, with initial rare earth alloy capacity of 2,000 t/yr and potential expansion to 4,000 t/yr.

Permitting is expected to continue through 2026, followed by a two-year construction period.

If these projects proceed as planned, Energy Fuels could control a supply chain extending from mineral sands and monazite through separated oxides to rare earth metals and alloys.

The Metalnomist Commentary

Energy Fuels is building one of the more complete non-China rare earth chains in the US. The key strategic value lies in linking diversified monazite feedstock with heavy rare earth separation and domestic alloy production.

Phoenix Tailings Rare Earth Refining Expansion Secures $500mn US Defense Loan

Phoenix Tailings Rare Earth

Phoenix Tailings rare earth refining expansion has secured a conditional $500mn loan from the US Department of Defense, providing major financial backing for new domestic separation and metallization capacity.

Phoenix Tailings rare earth refining plans could receive around $1bn in combined government and private capital. The funding will support expansion at existing facilities and development of a new US rare earth separation and metallization plant.

Phoenix Tailings rare earth refining is strategically important because the company operates downstream of mining, targeting the processing stages where the US remains most dependent on overseas supply. These include rare earth separation, metal production and alloying.

The company must still satisfy financial, technical, legal and other conditions before drawing the DOD loan.

Freedom Facility Targets the Critical Separation-to-Metal Gap

Phoenix Tailings currently operates metallization facilities in Burlington, Massachusetts, and Exeter, New Hampshire.

The Exeter plant opened in October 2025 with capacity to produce 200 t/yr of light and heavy rare earth metals. The site has potential to expand to 1,000 t/yr.

Initial production includes neodymium-praseodymium metal and dysprosium-iron alloy. Phoenix plans to broaden output into dysprosium, terbium, samarium, yttrium and gadolinium, alongside strategic metals including germanium and gallium.

This product mix gives the company exposure to permanent magnets, defence systems, aerospace, electronics and other advanced manufacturing markets.

The planned Freedom facility will extend the model further by combining rare earth separation with metallization. Initial operations are targeted for 2028.

The facility is designed to accept multiple feedstocks, including mined concentrates, recycled material and secondary resources. This flexibility could reduce dependence on any single upstream source.

That is particularly important for heavy rare earths, where global separation and metal production remain highly concentrated.

Federal and Private Capital Accelerate US Processing Buildout

The $500mn DOD loan follows additional federal backing for Phoenix Tailings.

The Department of Energy recently selected the company as one of two recipients under a $134mn programme supporting demonstration-scale rare earth processing from domestic industrial waste.

Phoenix Tailings also raised $116.6mn in Series B financing earlier this year from investors including Olive Tree Capital, Nomura and Traxys.

Its investor base also includes companies with potential downstream demand exposure, such as BMW i Ventures, Yamaha Motor Ventures and Sumitomo-linked Presidio.

This combination of public financing, private capital and strategic investors gives Phoenix a stronger route toward commercial scale.

The industrial significance goes beyond adding another rare earth project. The US already has emerging mining and oxide separation capacity, but metallization and heavy rare earth processing remain major bottlenecks.

Phoenix is targeting precisely those intermediate stages between separated oxides and finished magnets.

If the company reaches its expansion targets, it could become an important domestic supplier of NdPr, dysprosium, terbium and other strategic metals required for US magnet and defence manufacturing.

The Metalnomist Commentary

Phoenix Tailings is targeting one of the weakest links in the US rare earth chain: converting diverse feedstocks into separated materials and usable metals. The $500mn DOD loan shows that Washington increasingly views metallization capacity as strategic infrastructure, not simply another mining investment.

Lockheed F-35 Labor Contract Secures Fort Worth Production Continuity

F-35

Lockheed F-35 labor contract has been ratified by unionized employees at the company’s Fort Worth, Texas, assembly site, removing the immediate risk of labor disruption at one of the most important US fighter aircraft production facilities.

Lockheed F-35 labor contract will run for five years through June 2031 and includes annual wage increases, additional vacation benefits and a $6,000 ratification bonus. Workers represented by the International Association and Aerospace Workers approved the agreement on 14 June.

Lockheed F-35 labor contract is strategically important for the aerospace materials supply chain because the F-35 is highly titanium intensive. Each aircraft contains an estimated 5,900lb of titanium, equivalent to roughly 20% of total aircraft weight.

The agreement therefore provides greater production certainty not only for Lockheed Martin, but also for titanium mills, forgers, machinists and component suppliers tied to the F-35 programme.

Labor Stability Protects F-35 Production Schedules

The previous labor agreement was due to expire at midnight on 14 June, creating the possibility of disruption if negotiations failed.

Lockheed and the union reached a tentative agreement on 11 June before workers formally ratified the contract three days later.

The agreement also covers employees at Edwards Air Force Base in California and Patuxent River Naval Air Station in Maryland, extending labor stability beyond the Fort Worth assembly operation.

For Lockheed, avoiding a work stoppage is particularly important because fighter aircraft production depends on highly specialised labour and tightly coordinated supplier schedules.

A prolonged disruption at final assembly could quickly affect upstream suppliers because aerospace components are produced according to programme-specific delivery schedules and qualification requirements.

The five-year agreement gives Lockheed greater visibility over workforce costs and production continuity through the end of the decade.

Titanium Supply Chain Benefits From Production Continuity

The F-35 remains one of the most titanium-intensive major aircraft programmes. Titanium is used extensively because of its high strength-to-weight ratio, corrosion resistance and compatibility with composite structures.

At around 5,900lb of titanium per aircraft, changes in F-35 production volumes can have a meaningful impact on aerospace-grade titanium demand.

The material requirement extends beyond sponge and ingot. F-35 production supports demand for titanium plate, billet, forgings, castings, machined components and scrap recycling across a highly qualified supply chain.

Labor stability at Fort Worth therefore reduces one potential source of demand volatility for titanium suppliers.

The effect also extends to other aerospace materials, including nickel-based superalloys, aluminium and specialty steels used across engines, structures and landing systems.

For suppliers, predictable aircraft production is especially valuable because aerospace capacity cannot be adjusted quickly. Qualification requirements, long lead times and specialised equipment make sudden production changes difficult to absorb.

The Metalnomist Commentary

The labor agreement removes a near-term operational risk from one of the world’s most titanium-intensive defense programmes. For the titanium supply chain, stable F-35 production provides valuable demand visibility through a period of rising defense manufacturing requirements.

Norsk Titanium RPD Technology Targets US Submarine Applications

Norsk Titanium

Norsk Titanium RPD technology is moving deeper into US defense applications after the company secured a $4.2mn contract to develop rapid plasma deposition for maritime and submarine use.

Norsk Titanium RPD technology will be developed over an 18-month period under the Defense Industrial Base Expansion, Development, and Growth Enterprise initiative. The work will focus on qualifying additive-manufactured products for highly critical naval applications.

Norsk Titanium RPD technology is already established around titanium alloys, but the new programme will also expand the process into nickel-based alloys. That broadens the potential market from corrosion-resistant structural components into higher-temperature and more demanding applications.

The programme is strategically important because submarine supply chains require highly qualified materials, long service lives and strict control over metallurgy and manufacturing consistency.

Titanium Additive Manufacturing Fits Maritime Corrosion Requirements

Titanium is especially valuable in marine environments because of its strong corrosion resistance in seawater.

Commercially pure titanium and alloys such as Grade 5 and Grade 7 can provide long-term durability where conventional steels would require greater corrosion protection or maintenance.

This makes titanium attractive for submarine and maritime components exposed to saltwater, pressure and difficult operating conditions.

Additive manufacturing can add another advantage. Near-net-shape production can reduce the amount of expensive titanium that must be machined away from forged or wrought stock.

That can improve material utilisation and shorten lead times for complex components, particularly where conventional manufacturing requires large forgings or extensive machining.

For defense programmes, reducing dependence on long-lead forgings can be strategically valuable. Qualified additive processes could provide an alternative route for components where supply capacity is constrained.

However, qualification remains the critical barrier. Submarine components operate in safety-critical environments, so mechanical properties, fatigue behaviour, defect control and repeatability must be demonstrated before widespread adoption.

Nickel Alloys Could Expand RPD Beyond Structural Titanium

The move into nickel-based alloys could significantly broaden Norsk Titanium's addressable market.

Nickel superalloys are widely used where components must retain strength, corrosion resistance and thermal stability under demanding conditions.

For naval applications, this could create opportunities in propulsion, high-temperature systems and specialised mechanical components alongside titanium structures.

The combination of titanium and nickel alloy capability would also strengthen Norsk Titanium's position as a broader defense manufacturing supplier rather than a single-material additive producer.

The US defense industrial base is increasingly focused on manufacturing resilience, particularly for components dependent on limited forging, casting or machining capacity.

RPD technology could support that objective if it can reduce lead times while meeting military qualification standards.

The longer-term significance therefore lies in process substitution. Norsk is not simply selling additive manufacturing equipment; it is trying to qualify a new production route for materials and components traditionally supplied through conventional metallurgical processes.

The Metalnomist Commentary

Norsk Titanium's submarine programme shows that additive manufacturing is moving into increasingly critical defense applications. If RPD qualifies successfully in both titanium and nickel alloys, the technology could reduce dependence on long-lead forgings and expand flexibility across the naval supply chain.

Elmet Defense Contract Supports US Molybdenum Manufacturing Expansion

Elmet Technologies

Elmet defense contract funding will support expanded US production of molybdenum and other refractory metal products used in defense applications. The Department of Defense awarded the company $4.3mn to improve production capabilities and increase manufacturing capacity.

Elmet defense contract support is focused particularly on molybdenum products used in modern defense interceptor programs. The investment strengthens a domestic supply chain for materials that must perform under extreme heat, mechanical stress and demanding operating conditions.

Elmet defense contract also reflects broader US efforts to secure strategic processing capacity inside the country. Molybdenum is important not only as an alloying metal, but also in high-performance components where heat resistance and strength are critical.

The company produces pure molybdenum products and molybdenum-based alloys at its Lewiston, Maine, facility, with additional manufacturing operations in Michigan and Ohio.

Molybdenum Capacity Supports Defense Interceptor Programs

Molybdenum is valued for its high melting point, strength at elevated temperatures and resistance to thermal degradation. These properties make it important for aerospace, defense, electronics and other advanced industrial applications.

Interceptor systems require materials capable of maintaining performance under intense thermal and mechanical conditions. That creates demand for tightly controlled refractory metal products rather than standard industrial grades.

Elmet plans to use the new funding to improve existing production capabilities and expand capacity. This could strengthen output of both pure molybdenum products and engineered molybdenum alloys.

The contract also highlights the importance of downstream manufacturing. Securing raw molybdenum alone does not guarantee defense supply security unless domestic producers can convert it into qualified components and material forms.

For the US defense sector, expanding domestic processing reduces reliance on imported finished refractory metal products and gives manufacturers greater control over quality, traceability and production schedules.

Refractory Metals Gain Strategic Supply Chain Importance

Elmet operates three US manufacturing sites in Lewiston, Maine, Coldwater, Michigan, and Euclid, Ohio. That footprint gives the company a broader domestic platform for refractory metal processing.

The latest investment strengthens this network at a time when governments are placing greater emphasis on domestic production of strategic materials used in defense systems.

Refractory metals such as molybdenum are especially sensitive because production volumes are relatively small compared with major industrial metals, while qualification requirements can be high.

This makes manufacturing capacity itself a strategic asset. Even modest disruptions can affect specialized defense programs when alternative qualified suppliers are limited.

The contract therefore carries significance beyond its $4.3mn value. It supports the retention and expansion of technical capability inside the US defense industrial base.

The Metalnomist Commentary

The Elmet award shows that defense supply security depends on qualified processing capacity as much as raw material access. Molybdenum may be a small-volume market, but its role in high-temperature defense systems gives domestic manufacturing outsized strategic value.

Elmet Defense Contract Expands US Molybdenum Manufacturing Capacity

Elmet Technologies

Elmet defense contract funding will support expanded US production of molybdenum and other refractory metal products used in defense applications. The Department of Defense awarded the company $4.3mn to improve production capabilities and increase manufacturing capacity.

Elmet defense contract support is focused particularly on molybdenum products used in modern defense interceptor programs. The investment strengthens a domestic supply chain for materials that must perform under extreme heat, mechanical stress and demanding operating conditions.

Elmet defense contract also reflects broader US efforts to secure strategic materials and processing capacity inside the country. Molybdenum is important not only as an alloying metal but also in high-performance components where heat resistance and strength are critical.

The company produces pure molybdenum products and molybdenum-based alloys at its Lewiston, Maine, facility, with additional manufacturing operations in Michigan and Ohio.

Molybdenum Capacity Supports Defense Interceptor Programs

Molybdenum is valued for its high melting point, strength at elevated temperatures and resistance to thermal degradation. These properties make it important for aerospace, defense, electronics and other advanced industrial applications.

Interceptor systems require materials capable of maintaining performance under intense thermal and mechanical conditions. That creates demand for tightly controlled refractory metal products rather than standard industrial grades.

Elmet plans to use the new funding to improve existing production capabilities and expand capacity. This could strengthen output of both pure molybdenum products and engineered molybdenum alloys.

The contract also highlights the importance of downstream manufacturing. Securing raw molybdenum alone does not guarantee defense supply security unless domestic producers can convert it into qualified components and material forms.

For the US defense sector, expanding domestic processing reduces reliance on imported finished refractory metal products and creates more control over quality, traceability and production schedules.

Refractory Metals Gain Strategic Supply Chain Importance

Elmet operates three US manufacturing sites in Lewiston, Maine, Coldwater, Michigan, and Euclid, Ohio. That footprint gives the company a broader domestic platform for refractory metal processing.

The latest investment strengthens this network at a time when governments are placing greater emphasis on domestic production of strategic materials used in defense systems.

Refractory metals such as molybdenum are particularly sensitive because production volumes are relatively small compared with major industrial metals, while qualification requirements can be high.

This makes manufacturing capacity itself a strategic asset. Even modest disruptions can affect specialized defense programs when alternative qualified suppliers are limited.

The contract therefore carries significance beyond its $4.3mn value. It supports the retention and expansion of technical capability inside the US defense industrial base.

The Metalnomist Commentary

The Elmet award shows that defense supply security depends on qualified processing capacity as much as raw material access. Molybdenum may be a small-volume market, but its role in high-temperature defense systems gives domestic manufacturing outsized strategic value.

US Army Critical Minerals Leases Bring Processing Onto Military Installations

US, critical minerals

US Army critical minerals leases will place four commercial processing facilities on military installations for the first time, marking a new approach to securing domestic supplies of graphite, lithium, boron and rare earths.

US Army critical minerals leases were conditionally awarded to Empire State Mines, Energy X, Ioneer USA and REalloys on 25 June. The facilities are expected to begin development in 2027, with initial operating capacity targeted by or before 2028.

US Army critical minerals leases are strategically significant because they move critical mineral processing directly onto federal military property. The model reduces the need for the government to build and operate the facilities itself while creating a dedicated pathway for private investment.

The initiative also reflects a broader shift in US industrial policy. Washington is increasingly focused on processing capacity, not just access to mineral deposits, because refining and conversion remain major vulnerabilities in defense supply chains.

Military Land Becomes a Platform for Mineral Processing

The four companies will focus on different critical materials. Empire State Mines will process graphite, Energy X will target lithium, Ioneer USA will process boron, and REalloys will handle rare earths.

These materials serve different markets, but all have strategic relevance. Graphite and lithium are key battery inputs, rare earths support permanent magnets, and boron is used in advanced materials, glass, ceramics and selected defense applications.

The projects will be developed through the Army’s Enhanced Use Lease model. This allows underutilized military land to be leased to private-sector companies while the Army remains the landlord.

The commercial operators will bear the costs of financing, designing, building, operating, securing and eventually decommissioning the facilities. They must also pay rent at or above fair market value.

This structure limits direct government construction risk while still giving the Army influence over where strategic processing capacity is located.

The model could also shorten parts of the project-development process if sites already have suitable infrastructure, security and federal oversight. That could make military installations attractive locations for strategically sensitive processing projects.

Defense Policy Shifts Toward Domestic Processing Capacity

The leases are part of the Army’s Strategic Capital Initiatives, which aim to use private investment to accelerate military modernization and supply-chain resilience.

The significance lies in the processing stage. The US has identified numerous domestic and allied mineral resources, but many still depend on overseas refining or conversion before they can enter defense manufacturing.

Locating commercial plants on military property signals that processing is increasingly viewed as strategic infrastructure. The Army is effectively using its land base to support industrial capacity that private markets have struggled to build quickly enough.

The approach has already been tested outside critical minerals. The Army has used similar lease structures for a Hanwha Defense USA munitions facility and data center projects involving Carlyle and CyrusOne.

If the mineral projects reach production on schedule, the EUL model could become a repeatable tool for other materials. It offers the government a way to support domestic capacity without taking full ownership or construction responsibility.

For the wider market, the message is clear. US critical minerals policy is moving further downstream, with processing, refining and conversion becoming central to defense supply security.

The Metalnomist Commentary

The Army’s lease awards turn underused military land into industrial infrastructure for critical minerals. The model could become important if it proves capable of moving processing projects from policy support to commercial production faster than conventional development routes.

AML Defense Magnet Contract Advances Domestic NdFeB Qualification for US Supply Chains

Advanced Magnet Lab

AML defense magnet contract award marks another step in the US effort to qualify domestic neodymium-iron-boron magnets for defence applications. Advanced Magnet Lab received a $2mn contract from the Defense Logistics Agency to support high-grade magnet qualification.

AML defense magnet contract work will run over two years and covers supply chain management, alloying and permanent magnet manufacturing. The award is small in value, but important in strategic function.

AML defense magnet contract support matters because NdFeB magnets remain one of the most exposed links in US defence and advanced manufacturing supply chains. The US needs not only rare earth oxides, but qualified metals, alloys and finished magnets.

The contract also shows that Washington is moving beyond upstream rare earth projects. Defence supply security now depends on converting NdPr and dysprosium feedstock into magnets that can meet military performance and qualification requirements.

Qualification Becomes the Real Magnet Supply Bottleneck

AML said it uses a new manufacturing process that simplifies production and expands options for magnet design, materials and performance. That could help the company tailor magnets for different defence and industrial applications.

This is important because magnet qualification is a long and demanding process. Defence customers need consistent magnetic performance, material reliability, traceable feedstock and controlled production routes.

NdFeB magnets are critical for motors, actuators, sensors, guidance systems, aerospace platforms, robotics and other high-performance equipment. Dysprosium is especially important where magnets must retain performance under high temperatures.

The DLA award therefore targets a practical bottleneck. The US cannot build a secure magnet supply chain by mining rare earths alone. It must also qualify alloying, metallisation and final magnet manufacturing.

For AML, the contract gives validation from a defence procurement agency. For the broader market, it signals that domestic magnet capacity is becoming a formal industrial security priority.

Feedstock Partnerships Support Non-China Magnet Strategy

AML sources magnet feedstock from US and European rare earth suppliers. This sourcing strategy is central to building a more resilient magnet supply chain outside China.

Phoenix Tailings will supply neodymium-praseodymium and dysprosium metals. That gives AML access to rare earth metal feedstock, which is a critical step between oxide production and magnet manufacturing.

Ionic Rare Earths will supply NdPr and dysprosium oxides. Texas-based Momentum is also a likely supplier of NdPr oxides.

This mix of suppliers shows how the US magnet chain is being built through multiple feedstock routes. Oxides, metals, alloying and magnet production must connect before customers can receive usable products.

The strategic issue is integration. Rare earth projects often focus on mining or separation, but magnet production requires many precise steps after that.

AML’s DLA contract highlights the direction of US policy. Washington is trying to create a qualified domestic magnet ecosystem by linking defence demand with non-China feedstock and manufacturing capability.

The Metalnomist Commentary

AML’s contract is small, but its significance is large because magnet qualification is one of the hardest gaps in the US rare earth chain. The next competitive advantage will come from companies that can connect NdPr, dysprosium, alloying and finished magnet performance into one trusted defence-ready platform.

Collins Aerospace Radar Production Expansion Strengthens US GaN Defense Electronics

Collins Aerospace

Collins Aerospace radar production is set to expand in Largo, Florida, as the aerospace and defense supplier invests in higher output for commercial aviation radar and multi-domain security solutions. The company plans to spend $26.5mn on the facility expansion.

Collins Aerospace radar production growth follows a $438mn contract awarded by the Federal Aviation Administration in January. The contract supports the FAA’s radar system replacement programme and gives Collins a major role in modernising US aviation surveillance infrastructure.

Collins Aerospace radar production will include Condor Mk3 and ASR-XM radar systems. These products use gallium nitride technology, making the expansion strategically relevant to compound semiconductors, defense electronics and high-performance radar supply chains.

The Largo facility already produces radars, satellite components and secure communications components. Full expansion operations are expected to begin by late 2026.

GaN Technology Raises Radar Performance and Materials Importance

Gallium nitride is becoming more important in radar and power electronics because it can outperform conventional silicon and gallium arsenide in demanding applications. GaN supports higher efficiency, higher voltage operation, faster switching and stronger high-temperature performance.

These characteristics are critical for aviation radar. Modern radar systems need higher power density, reliability and precision while operating in harsh conditions.

The Condor Mk3 and ASR-XM programmes therefore represent more than an equipment upgrade. They show how advanced semiconductor materials are becoming central to aerospace and defense capability.

GaN-based radar systems also strengthen the strategic value of compound semiconductor supply chains. As defense, aviation, satellite and communications systems become more electronics-intensive, access to qualified GaN materials and manufacturing capacity becomes a national security issue.

For Collins Aerospace, expanding Largo’s production capability improves its ability to support both civil aviation infrastructure and broader security markets.

FAA Radar Replacement Supports Domestic Manufacturing Capacity

The FAA radar replacement programme gives Collins a clear demand anchor for the Largo expansion. Long-term government contracts can support capital investment, workforce planning and equipment upgrades.

This matters because aerospace and defense electronics require qualified production environments, secure supply chains and strict reliability standards. Capacity cannot be added quickly without investment in specialised facilities and skilled labour.

The Largo site’s existing radar, satellite and secure communications work gives Collins an established base for expansion. The new investment should deepen that capability while supporting US domestic manufacturing.

The project also fits the broader reshoring trend in advanced electronics. Governments and major contractors are prioritising local production for systems tied to aviation safety, national defense and critical infrastructure.

For materials suppliers, the key signal is demand growth for GaN-related inputs and processing capability. Radar, satellite communications, power electronics and secure systems are likely to remain important demand channels for compound semiconductor materials.

The Metalnomist Commentary

Collins Aerospace’s expansion shows that GaN is moving deeper into critical aviation and defense infrastructure. The strategic bottleneck will not only be radar assembly, but reliable access to qualified compound semiconductor materials and manufacturing capacity.

MP Materials NdPr Production Rises as US Magnet Supply Chain Expands

MP Materials

MP Materials NdPr production rose sharply in the first quarter as the US rare earth producer increased output of the key magnet feedstock used in electric vehicles, wind turbines, robotics, defence systems and advanced manufacturing.

MP Materials NdPr production reached 917t of neodymium-praseodymium oxide in January-March, up 63% from a year earlier. The company also sold 1,006t of NdPr oxides during the quarter, including initial shipments to its newest US customer.

MP Materials NdPr production is strategically important because NdPr oxide remains the most important input for rare earth permanent magnet production. The company believes NdPr access will remain the main constraint on economically viable magnet production outside China for at least the next five years.

The company produced just under 13,000t of rare earth oxides in the first quarter. Its loss narrowed to $8mn on revenue of $91mn, compared with a loss of $23mn on revenue of $61mn a year earlier.

NdPr Price Floor Supports US Supply Chain Economics

MP expects its realised NdPr price in the second quarter to be in the low-to-mid $90/kg range. However, its public-private partnership with the US Department of Defense provides a $110/kg price floor.

That structure is commercially important. If MP sells below the floor, the partnership offsets the difference between the realised price and $110/kg.

The price floor gives MP stronger revenue visibility while it expands downstream rare earth capacity. It also shows how the US government is using market-support tools to build domestic supply chains for strategic materials.

This is critical because rare earth magnet supply outside China still faces weak economics, limited scale and high qualification barriers. A price floor can help bridge the gap between strategic supply security and market pricing.

MP is also advancing its magnet business. The company expects initial magnet revenue in the second half of 2026 as it develops new magnet grades and customer specifications.

The magnet strategy includes improved chemistry and materially lower heavy rare earth content. This matters because dysprosium and terbium are expensive, supply-constrained and heavily exposed to Chinese processing dominance.

If MP can reduce heavy rare earth intensity while maintaining magnet performance, it could improve cost competitiveness and reduce supply-chain risk.

Heavy Rare Earth Separation Adds Strategic Optionality

MP is commissioning its heavy rare earth separation circuit before July and expects to produce dysprosium and terbium later this year. It also plans to produce high-purity samarium oxide, with potential gadolinium oxide and other heavy rare earth products depending on market attractiveness.

The company’s position on heavy rare earths is selective. MP does not want upstream project ownership in heavy rare earths and is instead focused on diversifying its feedstock supply chain.

That strategy reflects a practical view of the rare earth market. Heavy rare earths are strategically important, but MP sees NdPr oxide as the binding constraint for non-China magnet production.

MP expects dysprosium and terbium prices to decline substantially because it believes they are secondary to the larger NdPr bottleneck. This view suggests that the company sees heavy rare earth scarcity as important, but not as decisive as securing sufficient NdPr oxide.

Midstream metalization remains another challenge. MP currently uses toll processors and is discussing options with domestic and international partners.

The company expects to continue using toll processing while exploring low-cost metalization routes globally. This shows that the US rare earth chain still has gaps between oxide production, metal conversion, alloying and final magnet manufacturing.

For the wider market, MP’s first-quarter performance is an important signal. The US is gradually moving from rare earth mining and oxide output toward a more integrated magnet supply chain, but every step requires qualification, processing capacity, customer acceptance and policy support.

The Metalnomist Commentary

MP’s stronger NdPr output shows that the US rare earth strategy is moving from resource ownership toward usable magnet feedstock. The price floor is the key industrial signal: Washington is now willing to support market economics where strategic supply chains cannot yet compete with China on price alone.

Heavy Rare Earth Supply Push Gains US Defense Backing Through REalloys

REalloys

Heavy rare earth supply has moved further into the US defense priority list after REalloys received a memorandum from the Department of Defense highlighting the need to secure domestic production of critical heavy rare earth elements. The document specifically identified dysprosium and terbium as the most critical and high-value materials.

The signal is important because heavy rare earth supply remains one of the weakest points in western permanent magnet value chains. Dysprosium and terbium are essential for high-performance magnets that must operate under heat, stress and demanding defense conditions.

REalloys said the Department of Defense is treating heavy rare earths as a national security priority. The company also said Washington is renewing support through financial investment, strategic policy and public-private partnerships.

The company is now expanding its North American metallisation platform to produce defense-grade dysprosium and terbium at commercial scale. That step targets one of the most important bottlenecks between rare earth separation and magnet manufacturing.

Dysprosium and Terbium Become Defense-Critical Materials

Dysprosium and terbium are not large-volume rare earths, but their industrial importance is high. They help improve the thermal stability and performance of neodymium-iron-boron magnets used in advanced motors, actuators, sensors and defense systems.

This makes them strategically different from ordinary raw materials. Even small shortages can affect high-value manufacturing programmes if qualified metal, alloy or magnet feedstock is unavailable.

The US defense focus reflects a wider shift in rare earth policy. Governments are no longer concerned only with mining rare earth ore. They are increasingly focused on separated oxides, metals, alloys and magnet-ready materials.

That is where heavy rare earth supply becomes difficult. China remains dominant across heavy rare earth processing and magnet material production, leaving western defense and industrial users exposed to export controls and licensing risk.

REalloys’ focus on defense-grade dysprosium and terbium is therefore strategically relevant. It addresses the material form that downstream manufacturers need, not only the upstream resource question.

Metallisation Capacity Is the Midstream Bottleneck

REalloys is expanding its North American metallisation platform with support from a long-term offtake agreement with the Saskatchewan Research Council facility in Canada. The agreement can provide feedstock sufficient to produce up to 530 t/yr of rare earth metals.

This feedstock link is important because rare earth metal production requires reliable separated material, technical process control and customer qualification. Without metallisation, separated rare earth oxides cannot fully support magnet and defense supply chains.

The North American rare earth supply chain still has several missing links. Mining and separation projects are advancing, but metal-making, alloy production and magnet manufacturing capacity remain limited.

REalloys’ platform could help close part of that gap. Producing dysprosium and terbium metal at commercial scale would give defense and magnet customers a more secure regional source of high-value heavy rare earth inputs.

The larger implication is clear. Western rare earth resilience will depend on building each stage of the chain, from feedstock to separated oxides, metals, alloys and final magnets.

The Metalnomist Commentary

The REalloys announcement shows that heavy rare earth strategy is moving beyond resource ownership into usable metal production. For defense supply chains, dysprosium and terbium security will depend on metallisation capacity, not only rare earth mining.

Korea Zinc Tennessee Smelter Gains FAST-41 Support for Critical Minerals Refining

Korea Zinc

Korea Zinc Tennessee smelter plans have gained federal permitting support after the US Permitting Council added Project Crucible to FAST-41 coverage. The designation is intended to speed permitting for the proposed smelting and refining facility in Clarksville, Tennessee.

The Korea Zinc Tennessee smelter would produce 12 non-ferrous metals, including zinc, copper, lead, antimony, gallium and germanium. It would also produce semiconductor-grade sulfuric acid, making the project strategically relevant to metals, chemicals and semiconductor supply chains.

The Korea Zinc Tennessee smelter is significant because it would be the first large-scale domestic zinc refinery built in the US since the 1970s. It also reflects Washington’s effort to rebuild domestic refining capacity for critical minerals and reduce dependence on overseas processing.

Project Crucible is planned as a $7.4bn investment. Korea Zinc announced the project in December in a joint venture with the US commerce and defense departments after acquiring the adjacent East Tennessee and Mid Tennessee mining complexes and the Clarksville smelter from Trafigura-owned Nyrstar.

Project Crucible Targets a Multi-Metal Refining Gap

Project Crucible is designed to process 1.1mn t/yr of raw materials and produce 540,000 t/yr of finished products. Korea Zinc expects to source feedstock mainly from the US and other North American sources.

This feedstock strategy matters because the US has mine supply and scrap flows, but lacks enough large-scale refining and separation capacity for several strategic materials. Project Crucible could help close that midstream gap.

The product mix is especially important. Zinc, copper and lead provide scale, while antimony, gallium and germanium add critical minerals value.

Gallium and germanium are strategically sensitive because they are used in semiconductors, fibre optics, infrared systems, defence electronics and advanced manufacturing. Antimony is also important for flame retardants, ammunition, lead alloys and military applications.

The facility’s semiconductor-grade sulfuric acid output adds another layer of industrial importance. High-purity sulfuric acid is a key chemical input for semiconductor manufacturing and advanced electronics.

Korea Zinc plans to base the facility on its Onsan smelter in South Korea. That gives the project an established technical reference point and strengthens its credibility as a complex multi-metal refining platform.

FAST-41 Status Supports US Industrial Supply Security

FAST-41 coverage gives Project Crucible a more coordinated federal permitting path. The Permitting Council also signed a memorandum of understanding with Tennessee to align federal and state permitting efforts.

The US Department of Defense will primarily oversee permitting for the project. That role underlines the national security importance of domestic critical minerals refining.

Korea Zinc expects construction to begin in 2027. Phased operations are scheduled to start in 2029 with zinc, lead and copper production.

Finished products are expected to move to US customers by rail. This gives the project a domestic logistics route and supports the broader goal of building mine-to-market North American supply chains.

The project fits a wider US strategy. Washington is trying to accelerate permitting, use defence-linked financing and support domestic refining capacity for materials used in semiconductors, defence, energy infrastructure and manufacturing.

For Korea Zinc, the project offers a major entry into US critical minerals processing. For the US, it provides a rare chance to add large-scale refining capacity across both base metals and strategic minor metals.

The Metalnomist Commentary

Project Crucible shows that the US critical minerals challenge is increasingly about refining, not only mining. If Korea Zinc can execute the Tennessee smelter on schedule, it could become one of the most important non-Chinese multi-metal refining assets in North America.

EU US Critical Minerals Action Plan Targets Supply Chain Security

US EU

EU US Critical Minerals Action Plan marks a deeper transatlantic effort to secure strategic raw materials as China export controls and global protectionism reshape industrial supply chains. The US and EU have signed the plan to diversify sourcing, strengthen resilience and coordinate responses to mineral supply disruptions.

The EU US Critical Minerals Action Plan is significant because it moves beyond general diplomatic language. It allows both sides to use trade and market tools, including border-adjusted price floors, standards-based markets, subsidies to close price gaps and offtake agreements.

The EU US Critical Minerals Action Plan also includes stockpile cooperation, technical coordination, regulatory alignment and standards for mining, processing and recycling. This shows that Washington and Brussels are now treating critical minerals as industrial security assets, not only commodity inputs.

Price Floors and Offtake Tools Signal Stronger Market Intervention

The plan highlights a major shift in western raw materials policy. The US and EU are preparing to coordinate tools that can make non-China supply more commercially viable.

Border-adjusted price floors could help protect strategic mineral projects from low-cost competition. This matters because many western projects struggle to compete against established Chinese processing chains when prices fall.

Subsidies to address price gaps serve the same purpose. They can help bridge the cost difference between secure, traceable supply and cheaper material from dominant incumbent producers.

Offtake agreements are also central. Long-term purchase commitments can give miners, refiners and recyclers the revenue visibility needed to finance new capacity.

This is especially important for rare earths, gallium, germanium, graphite, lithium, cobalt, nickel, manganese and other strategic materials. Many of these markets are small, volatile or heavily concentrated in processing.

The plan also points to standards-based markets. This could support supply chains where environmental, labour, traceability and security standards become part of pricing.

For suppliers, the message is clear. Western buyers may increasingly pay for origin, compliance and resilience, not only the lowest spot price.

Transatlantic Coordination Raises Pressure on China-Linked Supply Chains

The plan will be implemented by the office of the US trade representative and the European Commission’s Directorate-General for trade and economic security. That structure places critical minerals directly inside trade and economic security policy.

The US has already moved aggressively in critical minerals. It has used the Defense Production Act, supported price floors and offtake agreements, and invested in overseas mineral assets to reduce reliance on China.

The EU has historically been more cautious about direct market intervention. However, its position is changing as supply risks increase and European manufacturers face tighter access to strategic raw materials.

Earlier this month, the European Commission launched a critical raw materials platform to match EU buyers with suppliers and aggregate demand. The new US-EU action plan builds on that direction and gives Europe a broader external coordination channel.

Rapid response mechanisms are also important. Export controls, shipping disruption, sanctions or sudden shortages can quickly affect defence, semiconductors, batteries, magnets, aerospace and clean energy manufacturing.

Stockpile cooperation could provide a temporary buffer. But the larger strategic goal is to build durable supply, processing and recycling capacity across allied economies.

The plan therefore strengthens the policy architecture for western mineral security. It also raises the likelihood that future raw material trade will be shaped by origin rules, price support, industrial standards and government-backed purchasing.

The Metalnomist Commentary

The EU-US plan shows that critical minerals policy is moving from risk awareness to market design. The decisive question is whether price floors, offtakes and subsidies can create real processing capacity before the next supply shock hits.

Century Aluminum Mt Holly Smelter Expansion Lifts US Primary Aluminum Output

Century Aluminum

Century Aluminum Mt Holly smelter production has begun from the company’s expansion project in South Carolina, adding new domestic primary aluminum capacity at a time when US trade policy is reshaping metal supply economics. The company expects the expansion to reach full production by the end of June 2026.

The expanded Century Aluminum Mt Holly smelter is expected to reach nameplate capacity of 229,000 t/yr. Century said the additional output will increase total US primary aluminum production by 10%.

Century Aluminum Mt Holly smelter output matters because the US has been trying to rebuild domestic primary aluminum supply after years of capacity pressure. Higher tariffs, energy costs and import dependence have made aluminum smelting a strategic industrial issue.

Section 232 Tariff Supports Domestic Aluminum Expansion

Century’s expansion follows the implementation of the 50% Section 232 aluminum tariff in June 2025. The tariff has improved the incentive structure for domestic primary aluminum production by raising the cost of imported material.

Primary aluminum smelting is highly energy-intensive, so producers need a combination of power competitiveness, policy support and long-term demand visibility. The Mt Holly expansion shows that tariff protection can influence production decisions when capacity is already available for restart or expansion.

The added output will not remove US import dependence. However, a 10% increase in domestic primary aluminum production is meaningful in a market where every operating smelter carries strategic value.

Domestic aluminum is important for packaging, transportation, construction, defense, electrical infrastructure and manufacturing. Greater local supply can reduce exposure to import volatility and support downstream users seeking more secure metal availability.

Century Extends US Aluminum Strategy With Oklahoma Project

Century is also pursuing a larger domestic growth strategy beyond Mt Holly. The company has teamed up with Emirates Global Aluminum to build a planned 750,000 t/yr primary aluminum smelter in Oklahoma.

That project would represent a much larger change to US aluminum supply if completed. It would add major greenfield smelting capacity and strengthen the country’s ability to supply downstream manufacturing from domestic primary metal.

The two projects show how US aluminum policy is moving from import management toward capacity rebuilding. Mt Holly provides a near-term production increase, while Oklahoma represents a longer-term industrial supply-chain bet.

For the US market, the key question is whether tariff protection, energy availability and industrial demand can support sustained investment in smelting. Without competitive power and stable policy, primary aluminum capacity remains difficult to maintain.

The Metalnomist Commentary

Century’s Mt Holly expansion shows that tariff policy is beginning to translate into real domestic aluminum output. The bigger test will be whether the US can turn short-term protection into long-term smelting competitiveness through power access, investment and downstream demand.

USA Rare Earth Yttrium Metal Pour Strengthens Downstream Rare Earth Strategy

USA Rare Earth

USA Rare Earth yttrium metal production has reached a commercial milestone after the company completed its first pour through wholly owned subsidiary Less Common Metals. The yttrium metal was produced at LCM’s Cheshire site in the UK with purity of 99-99.5%.

The company did not disclose production volume. However, the first commercial pour is strategically important because it moves USA Rare Earth further downstream from rare earth resource development into metal-making capability.

USA Rare Earth yttrium metal output supports the company’s broader plan to serve aerospace, defense and advanced manufacturing customers. These sectors need reliable rare earth metals, alloys and magnet-related materials from supply chains outside China-dominated processing routes.

The milestone follows USA Rare Earth’s acquisition of Less Common Metals in September 2025 for $125mn. It also comes shortly after the company took control of the Round Top heavy rare earth project in Texas, where commercial production is scheduled to begin in 2028.

Less Common Metals Adds Rare Earth Metal-Making Capacity

Less Common Metals gives USA Rare Earth an established metal-making platform before Round Top enters production. This is important because rare earth supply security depends on more than mining and oxide production.

Rare earth oxides must be converted into metals and alloys before they can support magnets, aerospace materials, defense systems and other advanced industrial applications. Metal conversion remains one of the most important bottlenecks in western rare earth supply chains.

LCM has 1,500 t/yr of metal-making capacity. The company also plans to add 26,000 t/yr of strip casting capacity in the UK, US and France by 2030.

That planned expansion could give USA Rare Earth a stronger position in downstream magnet and alloy supply. Strip casting is especially relevant for producing rare earth alloy feedstock used in permanent magnet manufacturing.

Yttrium has important applications in aerospace, defense, ceramics, phosphors, electronics, superalloys and advanced materials. While it does not receive the same attention as neodymium or dysprosium, yttrium remains strategically relevant because it supports high-performance material systems.

USA Rare Earth yttrium metal production therefore shows that the company is targeting a broader rare earth platform. It is not only focused on magnet rare earths, but also on heavy rare earth and specialty material supply chains.

Round Top Could Link Extraction, Oxides and Metals

The Round Top heavy rare earth project is central to USA Rare Earth’s long-term strategy. The company took over the Texas project in March, with commercial production planned for 2028.

Round Top is expected to support future yttrium extraction and broader heavy rare earth output. When combined with oxide processing and LCM’s metal-making capability, the project could create a more integrated rare earth supply chain.

This integration matters for US industrial policy. Western governments are trying to reduce dependence on China not only for rare earth mining, but also for separation, metal conversion, alloying and magnet production.

USA Rare Earth’s model addresses several of those links. Round Top provides the upstream resource base, oxide processing supports chemical conversion, and LCM adds rare earth metal production expertise.

The first yttrium metal pour does not yet prove full-scale supply. But it demonstrates that USA Rare Earth now has a working downstream route while it prepares Round Top for commercial production.

For aerospace and defense buyers, this could be valuable. Qualification cycles are long, and customers often need proven process capability before committing to strategic materials supply.

The next challenge will be scale. USA Rare Earth must align Round Top development, oxide processing, LCM capacity and customer qualification into a reliable commercial system.

The Metalnomist Commentary

USA Rare Earth’s first yttrium metal pour shows that rare earth competition is moving beyond mining projects. The real strategic value will come from linking heavy rare earth resources with oxide processing, metal conversion and alloy capacity for defense and advanced manufacturing.

Chifeng Gold Laos Rare Earth Output Plan Targets Medium and Heavy Rare Earth Growth

Chifeng Gold

Chifeng Gold Laos rare earth output plans are moving into a faster ramp-up phase as the Chinese diversified mining firm targets higher production from its Mengkang mine this year. The company plans to reach designed output capacity of 3,675t of mixed rare earth oxide at the Laos site.

The Chifeng Gold Laos rare earth output strategy is focused on meeting rising demand from upstream oxide plants. The plan also strengthens China-linked access to medium and heavy rare earth resources outside China’s domestic mining base.

The company produced 998t of rare earth ores at Mengkang in 2025, with sales of 853t and inventories of 145t. The mine only started operating in the third quarter of 2025, meaning 2026 will be an important test of its ramp-up capability.

Chifeng Gold also plans to build a 3,000 t/yr rare earth separation plant in Savannakhet province with Xiamen Tungsten. This would move the Laos platform beyond mining and into early-stage processing, improving value capture and supply-chain control.

Mengkang Ramp-Up Strengthens Medium and Heavy Rare Earth Supply

The Mengkang rare earth project is strategically important because it contains medium and heavy rare earth oxides. These materials remain among the most sensitive parts of the rare earth supply chain because they are essential for high-performance magnets, defense systems, electric vehicles, robotics, wind turbines and advanced electronics.

Chifeng Gold had total proven rare earth resource reserves of 60,000t by the end of 2025. The Mengkang site accounts for 25,500t of medium and heavy rare earth oxide resources, with an average grade of 0.025%.

Some market participants expect the Mengkang project to meet 8-10% of global demand for medium and heavy rare earths once fully operational. If achieved, that would give Laos a more important role in global rare earth supply and strengthen Chifeng Gold’s position in a high-value segment.

Chifeng Gold also holds the Saipan rare earth mining site in Laos. Saipan has proven resources of 32,000t of medium and heavy rare earth oxide, with an average grade of 0.045%.

The presence of both Mengkang and Saipan gives Chifeng Gold a broader Laos rare earth platform. This matters because medium and heavy rare earth supply is difficult to expand quickly, and new projects face technical, environmental and permitting challenges.

The Chifeng Gold Laos rare earth output plan therefore comes at a sensitive time. Global consumers are looking for supply diversification, while Chinese companies are also trying to secure more overseas resources to support oxide separation, metals production and magnet manufacturing.

Xiamen Tungsten Partnership Links Laos Ore to Separation Capacity

Chifeng Gold’s partnership with Xiamen Tungsten gives the Laos rare earth strategy more downstream depth. The two companies signed an agreement in September 2022 to establish Chijin Xiamen Tungsten, a joint venture focused on developing rare earth minerals in Laos.

The joint venture has registered capital of 60mn yuan, or about $8.79mn. Chifeng Gold holds 51%, while Xiamen Tungsten holds 49%.

Chijin Xiamen Tungsten completed its acquisition of the Mengkang project in March 2024 and obtained mining rights from the Laos government in March 2025. This sequence shows that the project has moved from acquisition into operational development within a relatively short period.

Under the partnership, Xiamen Tungsten and its subsidiaries receive priority access to rare earth minerals in Laos. Chifeng Gold will support the joint venture’s registration, launch and policy coordination in Laos.

This arrangement is commercially important because Xiamen Tungsten brings downstream rare earth processing and metals experience. Chifeng Gold brings resource ownership and project development. Together, they can connect mining, separation and downstream supply more effectively.

The planned 3,000 t/yr separation plant in Savannakhet would further strengthen that connection. If delivered, the plant would reduce dependence on exporting raw or semi-processed material and allow more value to remain in the regional processing chain.

Chifeng Gold is also active in other metals. The company holds 583t of gold resources, 590,000t of copper resources, 560,000t of zinc and lead resources, and 80,000t of molybdenum resources.

Its cathode copper output rose by 9.07% on the year to 6,754t in 2025, while sales increased by 9.5% to 6,869t. Copper concentrate output more than doubled to 3,160t, with sales rising to 3,122t.

However, performance across other metals was mixed. Lead concentrate output fell by 9% to 3,680t, while molybdenum concentrate production slipped by 1.6% to 675t.

This broader metals base gives Chifeng Gold diversification, but the rare earth strategy is likely to receive more attention because of its strategic value. Medium and heavy rare earths carry stronger supply-chain importance than most conventional base metal outputs.

The Metalnomist Commentary

Chifeng Gold’s Laos rare earth push shows how Chinese companies are building overseas control in medium and heavy rare earths before supply pressure intensifies. The key issue is whether Laos can move from ore production into reliable separation capacity without becoming only another upstream resource base.

US Gallium Recovery Projects Target Domestic Supply Chain for Defense and Semiconductors

DOE(The US Department of Energy)

US gallium recovery projects will receive $5.4mn in funding from the Department of Energy as Washington tries to rebuild domestic supply for a metal critical to defense systems, semiconductors and advanced electronics. The funding will support five US-based projects under the Technology for Recovery and Advanced Critical-material Extraction – Gallium initiative.

The TRACE-Ga initiative is designed to prototype technologies that can recover gallium from US metal-processing feedstocks. This is important because the US is fully import-reliant for gallium and has not produced the metal domestically since 1987.

US gallium recovery projects are gaining urgency because gallium is essential for compound semiconductor materials, including gallium nitride. These materials support power electronics, radio-frequency devices, radar systems, satellite communications, fast chargers, LEDs and other high-performance technologies.

The funding is modest in scale, but strategically important. It signals that the US is no longer focusing only on mining new critical minerals. It is also trying to recover strategic metals from industrial by-products, waste streams and existing processing networks.

TRACE-Ga Funding Targets Recovery From Existing Feedstocks

The DOE award will support five companies working on gallium recovery technologies. Participants include PHNX Materials, Atlantic Alumina Company, Found Energy, Kunin Technologies and Indium Corporation.

The selection of companies shows how broad the recovery opportunity could become. Gallium is not usually mined as a primary product. It is commonly recovered as a by-product from other industrial processes, especially alumina and zinc-related supply chains.

This makes gallium recovery different from conventional mining. The key challenge is not only finding deposits, but identifying feedstocks where gallium exists in recoverable concentrations and developing technologies that can extract it economically.

Industrial waste refiner PHNX Materials could support recovery from complex waste streams. Atlantic Alumina Company brings relevance to alumina-linked feedstock. Found Energy adds an aluminum-related industrial angle, while Kunin Technologies focuses on mineral by-product recovery. Indium Corporation brings downstream metals refining and manufacturing expertise.

The TRACE-Ga initiative therefore targets the middle of the supply chain. It seeks to bridge the gap between laboratory recovery methods and scalable domestic production.

That gap matters because gallium supply is highly concentrated. China dominates primary gallium production and has used export controls to increase pressure on global buyers. For US defense and semiconductor supply chains, reliance on foreign gallium has become a clear strategic risk.

Domestic recovery could help reduce that exposure. Even if early projects produce limited volumes, they can prove process routes, identify feedstock partners and create the technical base for larger recovery systems.

The use of US metal-processing feedstocks also fits a wider circular materials strategy. Instead of waiting for new mines, the US can extract critical materials from industrial streams already moving through domestic facilities.

This could make recovery faster than new primary production. However, it still requires technical success, feedstock security, refining capability and customer qualification.

Gallium Nitride Demand Raises Strategic Pressure

Gallium’s strategic value has increased because of its role in gallium nitride and other compound semiconductor materials. Gallium nitride is widely used where high power, high frequency, efficiency and heat performance matter.

These applications are highly relevant to defense and advanced electronics. Radar, communications systems, satellite technologies, power conversion equipment and semiconductor devices all rely on materials where gallium can be difficult to substitute.

The DOE’s TRACE-Ga funding also sits alongside a larger notice of funding opportunity of up to $69mn. That programme targets technologies and processes that advance domestic production and refining of critical materials, including gallium and gallium nitride for semiconductor applications.

This shows that Washington is building a layered funding strategy. TRACE-Ga supports recovery prototypes, while broader DOE programmes aim to scale refining, alloying and advanced material production.

For the semiconductor industry, domestic gallium supply is not only a raw material issue. It is connected to wafer production, epitaxy, device manufacturing, packaging and defense procurement. A shortage or export disruption at the gallium stage can move through the entire compound semiconductor chain.

This is why gallium recovery matters even if volumes are small at first. Strategic materials often have low tonnage but high consequence. A reliable domestic supply stream can reduce procurement risk for critical systems.

The challenge will be commercialisation. Recovery from waste and by-products can be technically complex because gallium concentrations may be low and feedstock chemistry can vary. Companies must prove that their processes can recover gallium consistently, meet purity requirements and operate at competitive cost.

The US also needs downstream refining capacity. Recovering gallium-bearing material is not enough if the material cannot be refined into forms suitable for semiconductor and defense applications.

The DOE funding is therefore best understood as an early-stage industrial rebuilding tool. It does not immediately solve US gallium dependence, but it helps create the technologies and partnerships needed to rebuild supply.

The Metalnomist Commentary

US gallium recovery projects show that critical mineral security increasingly depends on recovering by-products from existing industrial systems. The strategic test will be whether TRACE-Ga can move beyond prototypes and create reliable domestic feedstock for gallium nitride, defense electronics and semiconductor manufacturing.