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.

Honeywell Defense Manufacturing Investment Boosts US Munitions Supply Chain

Honeywell

Honeywell defense manufacturing investment will expand US production capacity for components used in munitions platforms. Honeywell Aerospace Technologies plans to invest $500 million under a multiyear framework supply agreement with the US Department of Defense.

The investment will modernize and expand Honeywell’s manufacturing capabilities for navigation systems and actuators used in missiles. It will also support production of components linked to the company’s electronic warfare technology.

Honeywell defense manufacturing investment reflects a broader push to strengthen the US defense industrial base. The Pentagon is trying to secure faster, more reliable access to critical systems as munitions demand rises across the military supply chain.

Pentagon Supply Strategy Targets Faster Defense Production

The agreement forms part of the Department of Defense’s “Arsenal of Freedom” initiative. The program aims to streamline procurement and accelerate product acquisition by working more closely with private defense equipment and systems suppliers.

This approach matters because defense supply chains depend on specialized components with long qualification cycles. Navigation systems, actuators, missile components, and electronic warfare hardware require precision manufacturing, secure sourcing, and stable production capacity.

Honeywell’s investment therefore supports more than one product category. It strengthens the industrial infrastructure behind missiles, guided systems, and electronic warfare platforms at a time when defense readiness is becoming a manufacturing capacity issue.

Critical Minerals Demand Rises With Munitions Expansion

Honeywell defense manufacturing investment also has direct implications for critical minerals demand. Higher output of missiles, sensors, guidance systems, and electronic warfare components can increase demand for rare earths, germanium, tungsten, and other strategic materials.

Rare earths support high-performance magnets, sensors, and electronic systems. Germanium is important for infrared optics, semiconductors, and defense electronics, while tungsten is used in high-density, heat-resistant, and armor-related applications.

As the US expands munitions production, supply security for these materials will become increasingly important. Defense manufacturing growth will therefore reinforce the link between industrial policy, critical mineral access, and domestic processing capability.

The Metalnomist Commentary

Honeywell’s $500 million investment shows that defense production is becoming a critical minerals story as much as a manufacturing story. The US can accelerate munitions output only if component capacity and strategic material supply move together.

US DoD Invests in Domestic Niobium Production to Secure Supply

The US Department of Defense (DoD)

The US Department of Defense (DoD) is taking significant steps to secure the domestic supply of niobium, a metal essential for defense and aerospace applications. In a strategic move to reduce reliance on imports, the DoD has awarded a $26.4 million grant to Global Advanced Metals (GAM) under the Defense Production Act Investments (DPAI) program. This funding will enable GAM to enhance production of high-purity niobium oxide at its Pennsylvania facility. The investment aligns with the National Defense Industrial Strategy, prioritizing the expansion of domestic production to mitigate supply chain risks.

Niobium's Role in Defense and Aerospace

Niobium, known for its high strength-to-weight ratio and refractory properties, plays a crucial role in aerospace components. Its lower density compared to other refractory metals makes it ideal for reducing mass in systems like jet engines, solid rocket motor skirts, and turbine nozzles. As China accelerates its development of hypersonic weapons, the US government has expressed concern about securing a reliable supply of niobium for applications in these advanced defense platforms.

The grant to GAM will also enable the company to refine its production processes, integrating new workflows that are expected to increase efficiency. As niobium oxide is currently predominantly sourced from Brazil, this move marks a critical step toward reducing US dependence on foreign sources.

America's Response to Global Competition

In addition to GAM's efforts, the DoD is also supporting projects aimed at enhancing the cost-efficiency of niobium-based materials. The Powder Alloy Development of Additive Manufacturing (PADAM) project, led by America Makes and financed by the Air Force Research Laboratory (AFRL), is focused on improving niobium alloy production, particularly Nb C-103. This project seeks to expand the supply base while making niobium powder feedstocks more affordable and versatile for defense applications.

The increased focus on niobium highlights its importance in the defense sector, particularly as the US faces growing competition from nations like China, which is developing hypersonic missiles that rely heavily on niobium components. The success of these initiatives will not only secure the US niobium supply but also support the nation's defense systems for years to come.

ReElement Rare Earth Processing Award Strengthens US Mine-to-Magnet Strategy

ReElement

ReElement rare earth processing has gained fresh support from the US Department of Defense through a $2mn award to expand separation capacity in Marion, Indiana. The funding reflects Washington’s continued push to reduce reliance on Chinese-dominated rare earth supply chains and build domestic processing capacity for defense and commercial applications.

The two-year award will support processing of ores, recycled magnets, and manufacturing waste. This is important because the US rare earth supply chain needs more than new mines. It also needs refining, separation, recycling, and oxide production capacity that can feed permanent magnet manufacturing.

ReElement rare earth processing uses chromatography-based refining technology to produce high-purity rare earth oxides. These oxides are used in permanent magnets for defense systems, electric motors, electronics, and other advanced industrial applications.

Rare Earth Separation Remains the Critical Bottleneck

Rare earth separation is one of the most important weaknesses in the Western critical minerals supply chain. Mining projects can produce concentrates, but those materials must still be separated and refined into usable oxides before they can support magnet production.

The Department of Defense award targets that gap. By supporting ReElement rare earth processing in Indiana, the US is trying to expand the domestic industrial base around materials that are essential for missiles, aircraft, radar systems, robotics, electric vehicles, wind power, and precision electronics.

The funding also covers recycled magnets and manufacturing waste, which could strengthen circular supply channels. Recycling cannot replace primary supply entirely, but it can reduce dependence on imported feedstock and improve resilience when geopolitical tensions disrupt traditional flows.

Defense Funding Supports the 2027 Mine-to-Magnet Initiative

The award is part of the Department of Defense’s 2027 mine-to-magnet initiative. That strategy aims to connect raw material sourcing, separation, oxide production, metal making, alloying, and magnet manufacturing inside a more secure domestic and allied supply chain.

The funding comes through the Industrial Base Analysis and Sustainment program. Since 2014, the program has invested more than $2.6bn across 207 projects to expand US industrial base capacity. This shows that rare earths are now treated as a defense-industrial issue, not only a mining or technology issue.

The delayed announcement also highlights the importance of continuity in critical minerals policy. Government shutdowns and budget delays can slow execution, but the strategic direction remains clear. The US wants more domestic capacity for rare earth processing, especially for materials tied to permanent magnets and national security.

The Metalnomist Commentary

The ReElement award is small in dollar terms but important in strategic direction. The US rare earth challenge will not be solved by mining alone; the real contest is in separation, refining, recycling, and magnet-ready material production.

US Germanium Refining Expansion Gains Strategic Momentum with 5N Plus Award

5N Plus

US germanium refining expansion gained new momentum after the Department of Defense awarded $18.1mn to 5N Plus. The funding will support capacity growth at the company’s St George facility in Utah. This US germanium refining expansion targets higher recovery of metal from industrial waste. As a result, the project could strengthen domestic germanium supply for strategic applications.

The award matters because germanium remains a critical bottleneck material in the United States. The metal is essential for infrared optics, fibre-optic communication, satellite solar cells, and semiconductor uses. Meanwhile, the Pentagon sees domestic germanium production as a high-priority industrial base issue. Therefore, US germanium refining expansion now carries both commercial and defense significance.

5N Plus plans to scale output gradually through 2030. The company aims to produce 20 t/yr of high-purity germanium from recycling and recovery streams. That volume could satisfy a significant share of US demand. Consequently, 5N Plus germanium refining may become an important pillar of domestic supply resilience.

Domestic Germanium Supply Still Faces a Clear Strategic Gap

Domestic germanium supply remains limited compared with US consumption needs. In 2024, the United States imported both germanium metal and germanium dioxide. That import dependence exposes critical industries to external supply shocks. Therefore, expanding local refining capacity has become a strategic necessity.

China’s dominance explains why this matters so much. China controls most global germanium supply and introduced export controls in 2023. Those restrictions tightened non-Chinese availability and pushed prices to record highs. As a result, US germanium refining expansion is now part of a broader effort to reduce supply concentration risk.

The St George project also focuses on a practical route to growth. Recycling and industrial waste recovery can add supply faster than waiting for new mines. That makes the project more realistic in the near term. Meanwhile, it supports a more circular domestic materials chain.

Germanium Recycling Is Becoming a Defense Supply Chain Priority

Germanium recycling is no longer a niche topic in specialty materials. It is becoming a priority for industrial resilience and weapons platform support. The Department of Defense said refining capacity is a key bottleneck affecting critical military systems. Therefore, this award targets a weak point in the US defense materials base.

The project also carries policy importance beyond its size. It is the first investment made by the Defense Production Act Purchases Office in fiscal 2026. That suggests germanium now sits near the front of current critical minerals action. Consequently, 5N Plus germanium refining may become a reference case for future specialty metal support.

The wider message is clear. Supply security now depends on refining and recovery as much as on raw material access. A stronger domestic germanium chain can support semiconductors, communications, and defense applications at the same time. Therefore, US germanium refining expansion matters far beyond one facility in Utah.

The Metalnomist Commentary

This is a small-tonnage project with outsized strategic value. Germanium is one of those specialty metals where refining capacity matters more than headline volume. If 5N Plus executes well, this award could mark an important shift in how the US rebuilds critical material security.

Karman Space & Defense Acquires MTI to Expand Missile Alloy Capabilities

Karman Space & Defense

Strategic Acquisition Targets Refractory Metal Expertise for Missile Programs

Karman Space & Defense has acquired Metal Technology (MTI) for $90 million to bolster its missile systems technology development. The move aligns with Karman’s strategy to support U.S. Department of Defense priorities focused on advanced propulsion and thermal shielding applications. MTI’s expertise in refractory metals offers immediate synergies with Karman’s growing portfolio.

MTI manufactures critical components using high-temperature alloys like tantalum, vanadium, and molybdenum. These materials are essential for strategic missile systems that require extreme heat resistance and structural integrity. The acquisition grants Karman proprietary access to MTI’s processing technology and custom fabrication methods.

U.S. Defense Supply Chain Seeks Vertical Integration

This deal enhances vertical integration within the U.S. defense industrial base. By internalizing MTI’s alloy processing, Karman reduces reliance on external suppliers for niche, defense-critical materials. As global tensions rise and aerospace supply chains remain volatile, defense contractors increasingly seek control over rare metal capabilities.

Meanwhile, the acquisition reinforces the U.S. government's aim to onshore production of sensitive defense components. Refractory metals like molybdenum and tantalum are often sourced from geopolitically unstable regions, making domestic production capacity more strategically valuable than ever.

Focus Keyphrase: Refractory Metal Alloys

Karman's acquisition highlights the growing demand for refractory metal alloys in national defense. As missile programs become more advanced, the need for exotic alloys like tantalum, molybdenum, and vanadium increases. These metals withstand extreme temperatures and corrosive environments, making them ideal for hypersonic and long-range systems.

The deal also underscores how material science innovations remain central to aerospace progress. MTI’s custom alloy capabilities may enable Karman to pioneer new designs for next-generation missile defense technologies.

The Metalnomist Commentary

In a climate of defense escalation and materials nationalism, Karman’s move to acquire MTI is both strategic and timely. Refractory alloys may be niche, but they sit at the heart of tomorrow’s propulsion systems.

Ucore Secures $18M DOD Grant to Expand U.S. Rare Earth Separation Plant

Ucore Rare Metals

Strategic Metals Complex to Process Key REEs by 2026

Ucore Rare Metals has received $18.4 million from the U.S. Department of Defense to expand its rare earth separation plant in Louisiana, significantly advancing domestic REE processing capabilities. The Focus Keyphrase "Ucore rare earth separation plant" reflects the facility’s rising strategic value amid efforts to reduce U.S. dependence on Chinese supply chains.

This funding increases a previous $4 million agreement with the U.S. Army Contracting Command and will support Phase II development of the Louisiana Strategic Metals Complex (SMC) in Alexandria. The plant aims to commercially separate six critical rare earth elements — including neodymium, praseodymium, and dysprosium — all of which are vital for defense and clean energy technologies.

Kingston Prototype Expansion and Commercial Scale-Up

The DOD grant also backs the expansion of Ucore’s REE separation prototype facility in Kingston, Ontario, enhancing the company’s technical foundation for scaling commercial operations. Together, the Louisiana and Ontario sites will form an integrated North American rare earth supply chain.

Ucore’s SMC facility will process both light and heavy rare earth oxides at commercial volumes. These include materials used in permanent magnets for electric vehicles, wind turbines, and military applications. The company plans to begin construction and initial production in the second half of 2026.

Strengthening U.S. Rare Earth Independence

This investment demonstrates the U.S. government’s commitment to de-risking critical mineral supply chains, especially in response to China's tightening export controls on rare earths. Ucore’s project is one of the few in North America capable of separating multiple rare earth elements at commercial scale.

The development aligns with national defense priorities and the Inflation Reduction Act’s push to localize materials essential to the energy transition and strategic manufacturing.

The Metalnomist Commentary

Ucore’s rare earth separation plant, backed by the Department of Defense, signals a decisive step toward reshoring high-value critical mineral processing. With construction slated for 2026, the SMC could become a cornerstone of U.S. rare earth independence in an increasingly geopolitically charged market.

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.

Global Germanium Demand Soars as Buyers Seek New Supply and Alternatives

The U.S. Department of Defense (DoD)

With rising demand for germanium in defense and advanced computing, global consumers are seeking alternatives as China’s export restrictions have tightened supply. Germanium’s applications in artificial intelligence (AI) and autonomous vehicles have driven increased consumption, especially for its use in high-performance computing and infrared optics. AI systems benefit from silicon-germanium's ability to operate at higher frequencies and lower power, making it critical in modern technological advancements.

Germanium Supply Chain Concerns and Strategic Moves

The U.S. Department of Defense (DoD) is actively working to secure a sustainable germanium supply. The DoD has teamed up with LightPath Technologies to replace germanium in some of its applications, especially in optics, in a bid to reduce supply chain vulnerabilities. Meanwhile, other initiatives focus on increasing germanium consumption for defense purposes. The DoD is investing $14.4 million in 5N Plus, a Canadian semiconductor materials firm, to expand its capacity for producing germanium wafers for solar cells, ensuring continued supply for defense and satellite industries.

Producers are also responding to the supply crunch. Companies in Australia and Canada are exploring germanium-rich mining projects, while Hong Kong Sinomine Rare Metals is pushing to commercialize germanium production at its copper smelting line in Namibia. Belgium’s Umicore, meanwhile, has secured a deal with STL1 in the Democratic Republic of Congo to optimize domestic refining of germanium, further diversifying its global supply.

The rising price of germanium is likely to drive more refining and recycling initiatives, unless alternative materials become more widely adopted in its key applications.

MP Materials rare earth refinery JV targets Saudi processing and allied supply chains

MP Materials

MP Materials rare earth refinery JV plans to establish a rare earth refinery in Saudi Arabia with support from the US Department of Defense. MP Materials rare earth refinery JV also brings in Saudi Arabian Mining Company Maaden to process regional and global feedstock. As a result, MP Materials rare earth refinery JV aims to supply separated light and heavy rare earth oxides for industrial and defense demand across allied markets.

Rare earth processing move links US security goals with Saudi industrial policy

The partnership aligns with a broader US-Saudi push on strategic industries and critical minerals. Meanwhile, the planned refinery would convert rare earth feedstock into separated oxides, which sit upstream of permanent magnets and advanced electronics. Therefore, the project targets a bottleneck that has constrained non-China rare earth supply chains for years.

The ownership structure also signals Saudi control with US-aligned participation. Maaden will own at least 51% of the joint venture, while MP Materials and the US Department of Defense will jointly hold up to 49%. The US side will use non-recourse financing for its stake, while MP Materials will provide technical capability, sourcing reach, and marketing access.

Magnet supply chains and allied markets move closer to diversification

The announcement reinforces earlier commitments between the companies. MP Materials and Maaden signed an agreement in May to build a fully integrated rare earth supply chain, and the new refinery represents a concrete processing step. However, the real strategic leverage will come from consistent feedstock access and predictable qualification of light and heavy oxides for defense-grade requirements.

Saudi Arabia also frames mining as a pillar of its economic diversification strategy. The country is using Vision 2030 to reduce oil dependence, and it wants mining to become a major GDP contributor. As a result, a rare earth refinery in Saudi Arabia could anchor downstream investment in permanent magnets, alloys, and advanced manufacturing over time.

The Metalnomist Commentary

This joint venture targets the highest-value chokepoint in rare earths: separation capacity for light and heavy oxides. Meanwhile, the structure blends Saudi scale with US security financing, which can accelerate execution. Therefore, buyers should watch qualification timelines and offtake structures for magnet-grade supply.

 

Strong Fundamentals to Support Niobium Columbite Prices in 2025

Columbite

The niobium columbite market has witnessed steady price growth over the past two years, driven by rising demand from the aerospace and defense sectors and supply constraints in Brazil and the Democratic Republic of Congo (DRC). While firm fundamentals are expected to support prices in 2025, further increases may face resistance from smelters shifting to ferro-niobium as a cost-effective alternative.

Aerospace and Defense Demand Driving Niobium Prices

Niobium plays a critical role in high-temperature alloys used in jet engines, hypersonic missiles, and satellite components, making it essential for the aerospace and defense industries.

• Global military spending surged to $2.4 trillion in 2023, a 6.8% increase from 2022, according to the Stockholm International Peace Research Institute (SIPRI).

• Geopolitical tensions—including Russia’s ongoing war in Ukraine, escalating conflicts in the Middle East and Red Sea, and China’s increased military drills around Taiwan—have fueled higher defense budgets worldwide, supporting demand for niobium-based alloys.

One of the key niobium alloys, C-103, is composed of 89% niobium, 10% hafnium, and 1% titanium and is crucial in hypersonic missile technology, jet engine afterburners, and space applications. The US Department of Defense recently awarded a $26.4 million grant to Global Advanced Metals under the Defense Production Act program to boost high-purity niobium oxide production at its Pennsylvania plant, further reinforcing long-term demand.

Supply Constraints in Brazil and the DRC Impacting Columbite Prices

While demand-side factors have bolstered niobium prices, supply disruptions have also played a crucial role in the market’s upward trajectory.

• Brazilian niobium columbite supply tightened following President Lula da Silva’s crackdown on illegal mining in the Amazon. Although the primary focus has been on gold and zinc mining, industry participants have reported higher niobium columbite prices and supply disruptions since Lula’s election in 2022.

• Conflict in the eastern Democratic Republic of Congo (DRC) has led to reduced tantalite supply, which is a valuable alternative source of niobium for Chinese smelters. With tantalite shortages driving up prices, niobium concentrates have become even more expensive, exacerbating supply concerns.

As a result of these factors, columbite prices averaged $18.20/lb CIF main ports in 2024, significantly higher than the five-year average of $14.50/lb.

Price Outlook and Smelter Substitution Risk

While market fundamentals remain bullish, further niobium columbite price increases may face resistance as smelters consider switching to ferro-niobium to reduce costs. Historically, when columbite prices exceed $18/lb, Chinese smelters have shifted to ferro-niobium, capping price gains beyond that level. This pattern suggests that while prices are likely to remain firm in 2025, further spikes may be short-lived if substitution pressures increase.

Conclusion

With rising global defense spending, growing aerospace applications, and constrained supply from key producers, the niobium columbite market is well-positioned for continued price support in 2025. However, potential price resistance from Chinese smelters switching to ferro-niobium could limit further upside movement. As geopolitical tensions persist and global demand for high-performance alloys rises, niobium remains a critical material to watch in the strategic metals market.

US Defense Stake in Trilogy Metals Signals Strategic Copper Push

Trilogy Metals

US defense stake in Trilogy Metals marks a new phase in American critical minerals policy. The US Department of Defense will acquire a 10pc equity position in Trilogy Metals through a $35.6mn investment, directly supporting the Upper Kobuk Minerals Projects in Alaska. This US defense stake in Trilogy Metals aligns with Washington’s broader effort to secure domestic supplies of copper, zinc, lead and cobalt for energy transition and defense applications. The funding targets early-stage exploration and development, giving the government a financial foothold in a key North American resource district.

US defense stake in Trilogy Metals reshapes project governance

The share deal will significantly reshape the ownership and governance structure around the Ambler district assets. Trilogy, South32 and their joint venture vehicle Ambler Metals have agreed that the DOD will purchase 16.4mn Trilogy shares, split evenly between new issuance and stock sold by South32. As a result, the US defense stake in Trilogy Metals will include a 10pc holding in the company plus a transferred 10-year call option over an additional 6.2mn shares. In parallel, the DOD gains the right to appoint an independent director to Trilogy’s board for three years, embedding strategic oversight at the governance level. This board presence reinforces how the US defense stake in Trilogy Metals goes beyond financing and moves into influence over long-term project direction.

Ambler Access road and permitting move to the forefront

The investment also targets the bottlenecks that have slowed development of the Ambler district. The partners and the US government plan to collaborate on permitting, financing and construction of the Ambler Access road, linking the remote Upper Kobuk Minerals Projects to the Dalton Highway. As a result, the package couples capital with political support for a key piece of Arctic infrastructure. The parties also intend to pursue expedited mine permitting, although environmental and community scrutiny in Alaska remains intense. If successful, the integrated approach could shave years off the path to first production and turn the Ambler district into a meaningful copper and zinc supplier for North American smelters.

The Metalnomist Commentary

This transaction shows how security concerns are pulling US government capital directly into junior mining equity, not just downstream refining. For Trilogy and South32, the partnership de-risks infrastructure and permitting, but it will likely raise expectations on ESG performance and project transparency. The Ambler district could become a test case for whether state-backed critical minerals strategies can overcome the permitting gridlock that has stalled many US copper projects.

Lynas samarium oxide output marks another step in building separated heavy rare earth capacity

Lynas samarium oxide

outside China. Australian producer Lynas Rare Earths has achieved first production of samarium oxide at its Malaysian refinery, adding a third separated heavy rare earth material to its commercial product line.

The milestone expands Lynas’ separated heavy rare earth portfolio beyond terbium and dysprosium. The company said it is now the only commercial producer of separated samarium, terbium, and dysprosium outside China.

Lynas samarium oxide output is strategically important because heavy rare earth separation remains one of the most concentrated parts of the global critical minerals chain. China still dominates processing, refining, and separation capacity for many rare earth elements used in magnets, defense systems, electronics, and advanced manufacturing.

Heavy Rare Earth Expansion Moves Lynas Up the Value Chain

Lynas is using its Malaysian refinery to move beyond light rare earths and build a broader separated oxide platform. The company plans to add gadolinium, yttrium, and lutetium over the next two years.

The company may also expand into europium, holmium, ytterbium, and erbium if customer agreements justify the required investment. That approach shows how rare earth separation capacity is being shaped by offtake contracts, not only by resource availability.

Lynas samarium oxide output also improves its strategic value to customers seeking non-China supply. Samarium is used in high-performance magnet applications, including samarium-cobalt magnets, which retain magnetic strength under high temperatures and demanding operating conditions.

US and Japan Offtakes Support Rare Earth Supply Security

Lynas’ product expansion is backed by major offtake commitments from the US and Japan. The company recently signed a binding letter of intent with the US Department of Defence for a $96 million light and heavy rare earth oxide supply deal.

The company has also agreed to sell at least 50pc of its heavy rare earth output to Japan Australia Rare Earths until 2038. These agreements underline Japan’s and the US’ efforts to secure rare earth supply chains for defense, energy, electronics, and advanced industrial uses.

Pricing also supports Lynas’ expansion strategy. Japan Australia Rare Earths and the US Department of Defence have both agreed to buy Lynas’ neodymium-praseodymium oxide at a floor price of at least $110/kg. Lynas’ average realised rare earth sales price rose to A$68.40/kg in July-December 2025, from A$44.60/kg a year earlier.

Lynas produced 6,375t of rare earth oxide in July-December 2025, including 3,407t of neodymium-praseodymium oxide. Output rose by 19pc on the year despite a month of lost production caused by severe power shortages at its Western Australia operations.

The Metalnomist Commentary

Lynas samarium oxide output shows that rare earth security depends on separation capability, not just mining. The next competitive frontier will be reliable, contract-backed production of specific heavy rare earth oxides outside China.

Perpetua Receives $6.9M from U.S. Army to Advance Domestic Antimony Supply Chain

Perpetua Resources

Stibnite Gold Project to Support Strategic Ammunition Material Testing

Perpetua receives $6.9M from U.S. Army for antimony testing, reinforcing the strategic role of domestic critical mineral development in national defense. The funding will support feasibility testing of antimony trisulfide production from the company’s Stibnite Gold Project in Idaho, targeting military-grade applications such as munitions and explosives.

This award builds on Perpetua’s existing $15.5 million contract from the Defense Ordnance Technology Consortium (DOTC) received in 2023. To date, the U.S. Department of Defense has allocated more than $80 million to the company, highlighting the urgency to establish a “ground-to-round” domestic antimony supply chain. The Stibnite deposit contains an estimated 148 million pounds of antimony, making it one of the most significant potential sources in North America.

U.S. Eyes Antimony Independence as China Cuts Exports

The U.S. relies heavily on imports for antimony, a critical mineral essential to over 300 types of munitions. However, China suspended antimony exports to the U.S. in December 2024, intensifying the need for secure domestic sources. Between January 2022 and October 2024, the U.S. imported 15,665 tonnes of antimony, with 22% coming from China.

As part of a broader national push, Perpetua recently received final federal permits for construction at the Stibnite site after being selected for expedited approval. The mine will produce both antimony and gold, making it one of the few U.S.-based projects directly aligned with defense-critical materials policy. As Perpetua receives $6.9M from U.S. Army for antimony testing, the company moves closer to restoring a vital supply chain link that has been offshore for decades.

The Metalnomist Commentary

Perpetua’s expanded partnership with the U.S. Army signals a turning point in reshoring defense-critical mineral supply. The Stibnite project could anchor a secure domestic antimony chain as global geopolitical tensions continue to restrict foreign access.

USA Rare Earth Funding Could Accelerate the US Mine-to-Magnet Supply Chain

USA Rare Earth

USA Rare Earth funding could become a major turning point for the US mine-to-magnet supply chain. The company agreed to receive $1.6bn in federal support tied to domestic rare earth development. That package includes direct funding, a large secured loan, and equity-linked participation. As a result, USA Rare Earth funding could speed up one of the most ambitious critical minerals buildouts in the United States.

The significance goes beyond mining alone. USA Rare Earth plans to expand across extraction, processing, metal-making, alloy production, and magnet manufacturing. That full-chain strategy matters because heavy rare earth elements remain one of the weakest links in US industrial security. Therefore, the project is aimed at supply chain depth, not just raw material output.

The funding model is also notable. Commerce will receive shares and warrants rather than rely only on subsidies. The company said this structure aligns taxpayer returns with institutional investor interests. Meanwhile, it avoids the need for direct government price supports or offtake guarantees. That makes the support framework different from earlier strategic minerals deals.

US Mine-to-Magnet Supply Chain Ambition Moves Closer to Industrial Scale

The US mine-to-magnet supply chain plan at Round Top is broad and vertically integrated. USA Rare Earth intends to extract 40,000 metric tonnes per day of rare earth feedstock. Commercial production is targeted for 2028. As a result, the project is being positioned as a major domestic source of strategic materials.

Processing capability is central to the strategy. The company plans to process 8,000 t/yr of third-party mixed rare earth concentrates, heavy rare earth elements, and critical mineral oxides. That includes dysprosium, terbium, gallium, and several other critical materials. Therefore, the facility aims to serve both rare earth and wider advanced materials markets.

Downstream manufacturing makes the plan more important. USA Rare Earth will build 10,000 t/yr of heavy rare earth metal-and-alloy making and strip-casting capacity. It also plans to increase neodymium-iron-boron magnet capacity to 10,000 t/yr. Consequently, the project targets one of the most valuable and strategically sensitive parts of the supply chain.

Heavy Rare Earth Elements Remain the Real Strategic Prize

Heavy rare earth elements are the most strategically important part of this story. Dysprosium and terbium are essential for high-performance permanent magnets. Those magnets support defense systems, electric vehicles, robotics, and advanced industrial equipment. Therefore, domestic access to heavy rare earth elements carries much greater significance than headline tonnage alone.

The project also reflects a broader US policy shift. Washington increasingly wants domestic production of critical materials tied to semiconductors, defense, and advanced manufacturing. USA Rare Earth funding fits that trend by linking industrial policy with long-term private capital. Meanwhile, the company also raised $1.5bn from outside investors, which strengthens its financing base.

This move also invites comparison with other rare earth support models. The Department of Defense previously backed MP Materials with investment, offtake, and price support mechanisms. By contrast, USA Rare Earth is using a structure built more around loans and equity participation. As a result, the US is testing different ways to build strategic supply without relying on a single policy template.

The Metalnomist Commentary

This is not just a mining story. It is a supply chain architecture story centered on processing and magnet capability. If USA Rare Earth executes well, it could become one of the clearest examples of how industrial policy reshapes critical minerals markets.

Vulcan US magnet plant signals new era for recycled rare earth magnets

Vulcan Elements

The Vulcan US magnet plant will anchor a new recycled rare earth magnet supply chain in North America. The project targets 10,000 metric tonnes per year of magnet production, focused on recycling magnets and electronic waste. As a result, the Vulcan US magnet plant directly supports US reshoring efforts in rare earth magnets for defence and clean energy.

Vulcan US magnet plant built on public–private financing

The Vulcan US magnet plant will rely on a blended finance structure combining US government and private capital. Vulcan secured a $620mn direct loan from the Department of Defense and $50mn in equity from the US Department of Commerce, alongside $550mn in private funding. This mix underlines Washington’s view of rare earth magnets as critical defence infrastructure rather than a pure commodity business.

Vulcan’s structure also gives federal agencies upside exposure. The Defense Department will receive warrants in both Vulcan and its processing partner ReElement Technologies, while Commerce takes a direct equity stake in Vulcan. Therefore the capital stack aligns national security objectives with commercial returns, a pattern increasingly common across US critical minerals projects.

Recycling and diversified feedstock at the heart of the model

Vulcan partners with ReElement Technologies to convert end-of-life magnets, electronic waste and mined concentrates into high-purity rare earth oxides. This model leans on urban mining and recycling to reduce dependence on imported primary rare earths. In parallel, supply agreements with Energy Fuels and ReElement provide neodymium-praseodymium and dysprosium oxides, plus broader light and heavy rare earth oxides.

The plant’s design aims squarely at high-performance permanent magnets for electric vehicles, wind turbines and defence platforms. By combining recycled material with mined concentrates, the project improves resilience against export controls and price volatility. If the Vulcan US magnet plant ramps as planned, it could become a key node in a closed-loop rare earth ecosystem in the US.

The Metalnomist Commentary

Vulcan’s entry shows how the magnet segment is becoming the strategic front line of rare earth industrial policy. Government-backed recycling-centric capacity may set a benchmark for future US projects, especially as defence supply chain audits tighten. The real test will be scaling efficiently while meeting strict magnet performance specs for automotive and defence customers.

5N Plus Semiconductor Materials Demand Rises as Germanium Refining Gains Strategic Value

5N Plus

5N Plus semiconductor materials demand remains strong despite rising input and operating cost pressure expected in 2026. The Canadian materials producer sees continued demand from solar, artificial intelligence, defense, and high-purity specialty semiconductor markets.

The company expects geopolitical uncertainty and broader economic factors to increase costs this year. However, 5N Plus semiconductor materials remain well positioned because AI-related power demand is supporting the solar sector and strengthening demand for advanced materials used in high-performance applications.

5N Plus reported strong 2025 results, with revenue rising 35pc year on year to $391mn. Its specialty semiconductors segment grew 41pc to $285mn, while performance materials revenue increased 22pc to $106mn. Profit more than tripled to $50.6mn, highlighting strong operating momentum despite a more complex cost environment.

Solar and Defense Demand Support Specialty Materials Growth

Solar remains a key demand driver for 5N Plus. The company expects its Germany-based solar cell producer Azur Space to expand production capacity by another 25pc in 2026. This follows capacity increases of 35pc in 2024 and 30pc in 2025.

This expansion shows how specialty solar materials are gaining value as AI, data centres, satellites, and power-sensitive applications increase demand for reliable energy technologies. Even with US policy shifts, 5N Plus expects solar-related demand to remain strong because underlying electricity needs continue to rise.

Defense is also becoming a more important opportunity. Several large defense companies have shown interest in 5N Plus’ ability to refine and recycle strategic minerals. This reflects a wider industrial shift in which high-purity materials, recycling capability, and secure domestic supply are becoming central to defense procurement.

Germanium Refining Expands US Critical Materials Capability

Germanium refining is emerging as a strategic growth area for 5N Plus. The US Department of Defense awarded the company $18.1mn in January to scale germanium refining capacity at its St George facility in Utah.

The project will gradually increase the company’s ability to recycle and recover metal from industrial waste. 5N Plus aims to produce 20 metric tonnes per year of high-purity germanium through 2030, strengthening US access to a critical material used in semiconductors, infrared systems, fiber optics, solar cells, and defense technologies.

The company expects the germanium expansion to have very little impact on 2026 revenue because commercial benefits will take at least a year to emerge. Still, the project has strategic value because it connects recycling, refining, and secure supply of high-purity materials in North America.

The Metalnomist Commentary

5N Plus shows how specialty materials companies are becoming strategic infrastructure for AI, defense, and energy transition supply chains. The near-term challenge is cost inflation, but the long-term opportunity is high-purity refining and recycling for materials that governments increasingly view as security-critical.

IperionX Secures $47M DoD Funding to Advance U.S. Titanium and Rare Earth Supply Chain

IperionX

Titan Project and Virginia Facility to Strengthen Critical Mineral Independence

IperionX has been awarded up to $47 million by the U.S. Department of Defense (DoD) to advance its Titan titanium and rare earth project in Tennessee and to boost production capacity at its Virginia manufacturing campus. This investment forms part of a larger $71 million public-private partnership aimed at reinforcing domestic critical mineral supply chains.

The funding will support a two-phase plan over the next two years. In Phase 1, the DoD will contribute $5 million toward a feasibility study to bring the Titan mineral sands project—located near Camden, Tennessee—to shovel-ready status. IperionX will add $1 million to this effort, which is expected to be completed within 12 months.

Titan Project to Deliver Multi-Metal Feedstocks for 25 Years

The Titan project, covering 11,000 acres, is fully permitted and expected to operate for 25 years. Once in production, it will yield a wide array of strategic minerals, including:

• 4,600 t/yr of rare earth element (REE) concentrate

• 16,700 t/yr of rutile

• 95,500 t/yr of ilmenite

• 22,400 t/yr of premium zircon

• 16,100 t/yr of zircon concentrate

IperionX has signed non-binding offtake agreements with Chemours and Mario Pilato BLAT for approximately half of its titanium and zircon output. These firms serve the chemical, ceramics, glass, and refractory sectors, providing early validation of the project’s commercial viability.

Vertical Integration to Include REE Processing and Production Expansion

The remaining $42 million of the DoD funding will go toward expanding production and supporting vertical integration at IperionX’s Virginia facility. The company also plans to process REE concentrate from Titan at Energy Fuels' White Mesa mill in Utah, one of the only licensed facilities in the U.S. capable of refining both light and heavy rare earth oxides.

This strategic funding package highlights growing U.S. efforts to reduce reliance on foreign sources, especially China, for titanium, rare earths, and zirconium—all essential to defense, aerospace, and clean energy industries.

MP Materials Sees Significant Boost in NdPr Production Despite Market Challenges

MP Materials, a leading U.S.-based producer of rare earth elements, reported a substantial increase in neodymium-praseodymium (NdPr) oxide production for the second quarter of 2024. The company more than doubled its output compared to the first quarter, producing 272 metric tons (t) of NdPr oxide between April and June. Sales for this period amounted to 136t at an average price of $48 per kilogram.

This significant production boost follows the inauguration of MP Materials' separation plant in California last August, which has enabled the firm to scale up its operations. In the first quarter of the year, the company produced 131t of NdPr oxide and sold 134t, reflecting the ongoing efforts to enhance production efficiency and market reach.

Chairman and CEO James Litinsky acknowledged the operational and financial difficulties faced during the quarter, citing higher-than-anticipated upstream downtime and a persistently weak pricing environment. The rare earths market has experienced a downturn this year due to oversupply and sluggish demand, which has reversed the price rally seen in 2020-2021.

Despite these challenges, MP Materials has secured key agreements that position it for future growth. The company signed a significant NdPr supply agreement with an undisclosed global automaker and was awarded a supply contract by the U.S. Department of Defense. These agreements are expected to provide stability and enhance the firm's market presence.

MP Materials reported a net loss of $34.055 million for the second quarter, partly due to a 51% year-on-year decline in revenue to $31.3 million. Nevertheless, the company remains optimistic about reducing its refined products cost structure throughout the remainder of 2024, which could improve margins even if low prices persist.

In addition to its NdPr production, MP Materials produced a total of 9,084t of rare earth oxide (REO) in the second quarter, selling 5,839t at an average price of $4,183 per ton. This is a decline from the first quarter, where production was 11,151t and sales were 9,332t, reflecting broader market conditions.

Looking ahead, MP Materials is advancing its downstream operations with the commissioning of a prototype magnet production line at its Fort Worth facility. The company aims to start commercial NdPr metal production by the end of this year. Additionally, MP Materials has received an initial $50 million in customer prepayments for its magnetics products and anticipates around $190 million more in prepayments and tax credits by the end of 2025.

US critical minerals list expands to 60 materials

US critical minerals

The US critical minerals list has expanded to 60 materials, reshaping policy for metals, energy and agriculture. The updated US critical minerals list now adds boron, copper, lead, metallurgical coal, phosphate, potash, rhenium, silicon, silver and uranium. As a result, the US critical minerals list will guide US industrial strategy, investment priorities and supply chain risk management for years.

Why the US critical minerals list matters for industry

The new list reflects rising concern over supply chain vulnerability and geopolitical risk. US law requires the US Geological Survey to review critical minerals every three years, based on domestic manufacturing needs and import exposure. This process now captures more metals with defence, clean energy and advanced manufacturing applications.

Government agencies played a decisive role in shaping the final list. The Department of Defense pushed to keep arsenic and tellurium, citing key national security uses. The Department of Energy backed metallurgical coal and uranium because of their importance for steel, power generation and defence. These decisions show how critical mineral policy is converging with broader security and industrial goals.

Boron’s inclusion highlights growing dependence on specialised inputs for steelmaking and high-tech uses. The US relies heavily on ferro-boron imports from China, creating a strategic vulnerability. By classifying boron as critical, policymakers can prioritise domestic projects, alternative suppliers and recycling pathways.

Agriculture, fertilizers and the critical minerals agenda

Fertilizer inputs now sit squarely inside the critical minerals framework. Phosphate and potash both entered the list, reflecting their central role in food security. Industry group The Fertilizer Institute welcomed the move, expecting clearer policy support for investment and capacity growth.

Phosphate’s addition is especially significant for US farmers. Market participants and officials had campaigned for its inclusion after the draft list omitted it. The US Department of Agriculture ultimately backed phosphate as a critical mineral because crop yields and global food stability depend on reliable, affordable supply.

As a result, fertilizer supply chains may see more targeted incentives, permitting support and risk monitoring. Recognising phosphate and potash as critical could reduce price volatility and import shocks, while encouraging long-term domestic production and storage strategies.

 

The Metalnomist Commentary

Washington’s broader US critical minerals list strategy now clearly reaches beyond battery metals into steel, energy and fertilizers. By aligning national security, climate policy and food security inside one critical minerals framework, the US is quietly redrawing the map of “strategic materials.” For miners, processors and recyclers, this list will increasingly shape where capital flows and which projects move fastest through the policy pipeline.