California Heavy Rare Earth Project Could Strengthen Harena’s US Critical Minerals Position

Harena Rare Earths

California heavy rare earth project development is moving back into focus as Harena Rare Earths evaluates a potential acquisition of Paradigm Critical Minerals. The UK-based explorer has agreed to assess Paradigm’s rare earth and uranium exploration assets in California, adding a possible US growth pathway to its existing rare earth portfolio.

The proposed transaction could place Harena Rare Earths closer to the center of the US rare earth supply chain. The project sits about 100 miles from MP Materials’ Mountain Pass mine, the only major rare earth mining operation in the US. That location gives the California heavy rare earth project strategic relevance, especially as Washington continues to prioritize domestic critical minerals capacity.

The project was originally developed for gold and silver. However, recent surface exploration has identified rare earth mineralization with an estimated 50:50 ratio of light rare earth elements to heavy rare earth elements. That balance matters because heavy rare earth elements remain a major vulnerability in Western magnet, defense, electronics, and energy transition supply chains.

Heavy Rare Earth Potential Adds Strategic Value

Heavy rare earth elements carry higher strategic importance than their smaller market size suggests. Materials such as dysprosium and terbium are essential for high-performance permanent magnets used in electric vehicles, wind turbines, robotics, aerospace systems, and defense technologies.

Harena Rare Earths said the asset could become one of the highest-grade rare earth exploration projects in the US. That claim still requires detailed due diligence, technical validation, and resource confirmation. However, the early indication of a strong heavy rare earth component gives the California heavy rare earth project a more valuable industrial profile than a light rare earth-only discovery.

The US rare earth supply chain remains heavily exposed to offshore separation and processing capacity. Therefore, any credible domestic heavy rare earth exploration asset can attract attention from investors, policymakers, and downstream manufacturers. The key question is whether the project can move from surface exploration potential to a defined resource with viable metallurgy.

Harena Expands Beyond Madagascar Rare Earths

Harena Rare Earths already owns the Ampasindava ionic clay rare earth project in Madagascar. That asset gives the company exposure to a different rare earth deposit type and a potential non-Chinese supply source. The California evaluation would add a US jurisdictional angle to its portfolio.

The acquisition review also reflects a wider trend in critical minerals markets. Explorers are increasingly repositioning legacy precious metals assets as strategic rare earth or battery material opportunities when geology supports it. This shift is especially visible in the US, where permitting, funding, and industrial policy are pushing companies to revisit domestic mineral districts.

The definitive value of Paradigm Critical Minerals will depend on due diligence results. Harena must assess grade continuity, mineralogy, uranium implications, permitting risk, processing options, and the pathway to downstream separation. Still, the location near Mountain Pass gives the project a stronger strategic narrative than many early-stage rare earth prospects.

The Metalnomist Commentary

The California heavy rare earth project is still early-stage, but its heavy rare earth ratio makes it strategically important. If Harena can prove scale, metallurgy, and permitting viability, the asset could become a meaningful addition to the US critical minerals pipeline.

USA Rare Earth Serra Verde Acquisition Builds Ex-China Magnet Supply Chain

Serra Verde Group

USA Rare Earth Serra Verde acquisition will give the US rare earth producer direct access to one of the most important heavy rare earth projects outside China. The company has agreed to acquire Brazil’s Serra Verde Group for $2.8bn, accelerating its strategy to build a fully integrated mine-to-magnet supply chain.

The deal includes $300mn in cash and 126.85mn USA Rare Earth shares. After completion, USA Rare Earth shareholders will own 66% of the combined company, while Serra Verde shareholders will own 34%.

USA Rare Earth Serra Verde acquisition is strategically important because Serra Verde owns the Pela Ema ionic clay mine in Brazil. The project targets production of 6,400 t/yr of rare earth oxides by the end of 2027, with plans to double output later.

The acquisition gives USA Rare Earth exposure to four key magnet rare earth elements: neodymium, praseodymium, dysprosium and terbium. These materials are essential for high-performance permanent magnets used in electric vehicles, wind turbines, robotics, aerospace, defence systems and advanced industrial motors.

The transaction also strengthens the company’s position in yttrium. Initial Serra Verde output is expected to include 1,534 t/yr of yttrium, a material whose price has risen sharply in the US market and which has strategic applications in ceramics, phosphors, electronics, alloys and defence-related materials.

Serra Verde Adds Heavy Rare Earth Feedstock and Price-Floor Protection

Serra Verde’s Pela Ema project gives USA Rare Earth a near-term rare earth oxide production base. Ionic clay deposits are strategically attractive because they can contain valuable heavy rare earths such as dysprosium and terbium.

Initial planned output of 6,400 t/yr of rare earth oxides is expected to include 164 t/yr of dysprosium and 29 t/yr of terbium. These are small volumes compared with light rare earths, but they carry high strategic value because they improve magnet performance in high-temperature applications.

Dysprosium and terbium are especially important for permanent magnets used in EV traction motors, wind turbine generators, industrial robotics, guided systems and aerospace components. Without these elements, magnets can lose performance under heat and stress.

The deal also includes a 15-year offtake agreement previously signed by Serra Verde with a special-purpose vehicle funded by US government agencies, including the Department of Commerce and Department of Energy. This gives the project a policy-backed commercial structure rather than relying only on spot-market sales.

The offtake agreement includes price floors for neodymium, praseodymium, dysprosium and terbium. Floors are set at $110/kg for neodymium and praseodymium, $575/kg for dysprosium and $2,050/kg for terbium.

This structure is important because rare earth projects outside China often struggle when prices fall. Price floors can improve project bankability by protecting revenues and reducing the risk that China-linked supply undercuts new producers during market downturns.

Serra Verde will also share 70% of non-China index prices above the floor, net of separation costs. This gives the project exposure to upside while maintaining downside protection.

The company can also monetise non-offtake elements, including yttrium. That flexibility matters because ionic clay resources can contain multiple valuable rare earths beyond the main magnet feedstocks.

The market timing is favourable for heavy rare earth producers. US yttrium oxide prices have risen sharply, while dysprosium and terbium remain high-value magnet materials. Supply chains outside China remain thin, and buyers are increasingly focused on traceable, geopolitically secure material.

However, the acquisition does not remove execution risk. Serra Verde must still deliver target output, manage ramp-up, maintain product quality and connect mine production with separation, metal and magnet capacity.

Mine-to-Magnet Roll-Up Tests Western Rare Earth Integration

USA Rare Earth Serra Verde acquisition is part of a broader roll-up strategy. The company is building its supply chain through acquisitions rather than waiting for long greenfield development timelines.

USA Rare Earth bought UK-based Less Common Metals for $125mn in November. Less Common Metals gives the company rare earth metal and alloy production capability, a critical midstream step between separated oxides and finished magnets.

The company also acquired Texas Mineral Resources for $73mn in March to secure the Round Top heavy rare earth project in Texas. Round Top adds a US-based heavy rare earth resource to the group’s upstream portfolio.

Together, Serra Verde and Round Top are expected to give the combined company 17,100 t/yr of rare earth oxide mining capacity. Separation capacity will total 13,000 t/yr, while expanded metal and magnet-making capacity is planned at 27,500 t/yr and 10,000 t/yr, respectively.

This integration is the key point. Rare earth supply security cannot be solved by mining alone. Ore or concentrate must be separated, refined, converted into metals, alloyed and manufactured into magnets before it can support industrial customers.

Many western rare earth projects fail to cover the full chain. Some have resources but no separation. Others have separation but no heavy rare earth feedstock. Some can produce oxides but lack metal conversion and magnet-making capacity.

USA Rare Earth argues that the merged company will be the only fully integrated magnet supplier outside China. The claim reflects the company’s attempt to combine upstream heavy rare earth resources, separation, metal production and magnet manufacturing in one platform.

That structure could be attractive to customers in defence, aerospace, automotive, robotics and clean energy. These buyers increasingly need non-China supply options that can meet origin, traceability, qualification and security requirements.

The US government-backed offtake component also shows how rare earth supply chains are changing. Western governments are no longer relying only on free-market procurement. They are using price floors, strategic vehicles, financing support and industrial policy to build alternative supply.

Still, integration brings complexity. USA Rare Earth must combine assets across Brazil, Texas, the UK and planned downstream facilities. It must align mining output, separation chemistry, metal production, magnet capacity, customer qualification and government-backed offtake obligations.

The valuation also raises expectations. A $2.8bn acquisition price gives Serra Verde a large strategic premium. The deal will need to deliver heavy rare earth output, stable separation economics and customer demand to justify that value.

The broader market implication is clear. Heavy rare earth supply is becoming the strategic centre of the magnet market. Neodymium and praseodymium remain essential, but dysprosium and terbium determine performance in the most demanding applications.

China still dominates much of the rare earth separation, metal and magnet chain. The USA Rare Earth-Serra Verde deal is an attempt to create an alternative industrial route at scale.

If successful, the combined company could become a rare western platform with upstream resources, heavy rare earth exposure, midstream conversion and downstream magnet capability. If execution slips, it will show again how difficult it is to recreate China’s integrated rare earth ecosystem outside China.

The Metalnomist Commentary

USA Rare Earth Serra Verde acquisition shows that the rare earth race is shifting from single-asset mining stories to integrated supply-chain control. The deal’s real test will be whether USA Rare Earth can turn Brazilian ionic clay output, US heavy rare earth resources, separation capacity and magnet production into a bankable ex-China magnet platform.

Heavy rare earth free NdFeB alloy from VAC targets China-independent magnet supply

Vacuumschmelze

Heavy rare earth free NdFeB alloy from VAC marks a major shift in Western magnet strategy. German producer Vacuumschmelze has launched VACODYM 902 TP, a neodymium-iron-boron grade that avoids dysprosium and terbium. As a result, the heavy rare earth free NdFeB alloy offers high performance while reducing exposure to increasingly volatile heavy rare earth markets.

VACODYM 902 TP extends VAC’s family of reduced-HRE NdFeB grades. The new heavy rare earth free NdFeB alloy achieves a remanence of at least 1.40 Tesla and a coercivity of at least 1,190 kA/m. These metrics place it firmly in the high-performance segment for traction motors and industrial drives. Therefore, OEMs gain an alternative to conventional NdFeB magnets that rely on dysprosium and terbium to maintain coercivity at elevated temperatures.

Western buyers have sought heavy rare earth free NdFeB alloy solutions for several years. Dysprosium and terbium production still concentrates overwhelmingly in China, which creates structural supply risk. Meanwhile, policymakers and OEMs push for magnet designs that reduce heavy rare earth intensity without sacrificing performance. VAC’s new grade directly responds to this pressure and is fully produced within Western supply chains.

Export controls and price spikes intensify heavy rare earth risk

China’s export controls on certain rare earths have tightened heavy rare earth availability for Atlantic buyers since April. Spot prices for dysprosium and terbium outside China surged immediately after the controls. European terbium oxide prices rose by 268pc between 1 April and early September, reaching $3,300-3,800/kg cif Europe. As a result, magnet makers now face severe raw material cost volatility and procurement uncertainty.

This environment accelerates the search for alternatives to heavy rare earth dependent NdFeB grades. VAC explicitly cites volatile raw material costs and market uncertainty as major supply chain challenges. Therefore, its new alloy is positioned as a “geopolitically independent alternative” to traditional heavy rare earth based solutions. The goal is clear: decouple magnet performance from a small, politically sensitive set of Chinese-controlled metals.

Other Western players are also moving to build ex-China heavy rare earth capacity. Lynas has started small-scale dysprosium and terbium oxide production in Malaysia. US producer Energy Fuels has produced pilot-scale dysprosium and plans larger-scale dysprosium and terbium output in Utah by late 2026. MP Materials supplies a heavy rare earth concentrate, SEG+, containing dysprosium and terbium for downstream processors.

Western magnet supply chains pivot toward diversified feedstocks

VAC’s launch of a heavy rare earth free NdFeB alloy fits a broader diversification trend. Western magnet producers and their customers want designs that either use fewer heavy rare earths or none at all. This shift complements efforts to develop new mining, separation and recycling capacity outside China. It also supports OEM strategies to meet ESG targets and reduce geopolitical risk in EV and wind supply chains.

VAC emphasises the importance of resilient, regionally anchored magnet value chains. Its new alloy, fully produced in the West, supports that objective. However, performance in real-world motor and generator platforms will ultimately determine adoption. Automotive and industrial customers will test VACODYM 902 TP against existing HRE-containing grades on efficiency, temperature stability and cost.

If performance proves comparable, heavy rare earth free NdFeB alloy families could gain rapid traction. That would gradually reduce Western dependence on Chinese dysprosium and terbium, even as new ex-China projects ramp up. In parallel, recycling and alternative motor topologies may further ease heavy rare earth demand over the next decade.

The Metalnomist Commentary

VAC’s move shows how magnet technology, not only mining, will shape the next phase of the rare earth race. A commercially viable heavy rare earth free NdFeB alloy gives Western OEMs a real lever to hedge against Chinese export controls and price spikes. Market participants should watch qualification timelines closely, because large-scale adoption could materially shift dysprosium and terbium demand forecasts.

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.

Lynas heavy rare earth plant anchors non-China supply shift

Lynas

Lynas heavy rare earth plant expansion marks a major step in diversifying global magnet material supply chains. The new Lynas heavy rare earth plant at Lynas Malaysia will raise separated output in several phases. As a result, the Lynas heavy rare earth plant will strengthen non-China options for samarium, yttrium, dysprosium and terbium.

Lynas heavy rare earth plant targets samarium and yttrium demand

Lynas will build a 5,000 t/yr heavy rare earth separation plant at its Lynas Malaysia complex. The company plans phased commissioning, with initial samarium output targeted from April 2026. Over the following two years, Lynas will add gadolinium, dysprosium, terbium, yttrium and lutetium. This phased ramp-up will match downstream qualification cycles and market absorption.

The Lynas heavy rare earth plant will focus capacity on separated yttrium and samarium. Around 44pc of the expanded plant output will be dedicated to these two elements. These materials serve multiple industrial uses, from electronics to specialised ceramics and lighting. Lynas will prioritise higher value segments, especially electronics, where pricing remains more attractive. The company plans to sell heavy rare earths under offtake contracts with price floors. That structure should reduce downside price risk and support investment returns.

Lynas will self-fund the A$180mn project using part of its recent A$750mn capital raise. This funding structure avoids immediate dependence on external lenders. It also signals management confidence in future heavy rare earth margins. The Lynas heavy rare earth plant builds on recent milestones in Malaysia. Lynas became the first producer of separated heavy rare earths outside China this year. It started separated dysprosium production in May and terbium in June, using new 1,500 t/yr circuits.

China export controls lift strategic value of Lynas heavy rare earth plant

China imposed export controls in April on the six heavy rare earth elements Lynas plans to produce in Malaysia. These measures tighten available supply for many downstream users, especially in magnets and advanced electronics. Against that backdrop, the Lynas heavy rare earth plant gains significant strategic weight for governments and OEMs. Non-China sources of dysprosium and terbium are essential for resilient magnet supply chains.

Lynas is also extending its footprint beyond Malaysia. The company is developing a US heavy rare earth and light rare earth plant in Texas. Planned capacity is 2,500–3,000 t/yr of heavy rare earths and 5,000 t/yr of light rare earths. US government backing underlines the national security dimension of rare earth diversification. Combined, the Malaysian and Texas projects create a more integrated mine-to-separation network outside China. This network directly supports EV motors, wind turbines and defence applications.

The Metalnomist Commentary

Lynas is methodically positioning itself as the core heavy rare earth supplier outside China. The company links phased capacity, price-floor offtakes and geographic diversification into one strategy. For OEMs, the real question now is how fast they can re-qualify non-China material and lock in long-term supply before the next policy shock.

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.

China Heavy Rare Earth Exports Stall as Curbs Hit Japan and US

Ru

China heavy rare earth exports stalled in May as export restrictions continued to disrupt shipments of terbium, dysprosium and lutetium products to key buyers. The data show how Beijing’s licensing controls are reshaping trade flows for materials used in magnets, defence, aerospace and advanced manufacturing.

China heavy rare earth exports were especially weak for products exposed to US and Japanese demand. China recorded no May exports of terbium oxide, dysprosium metal and several other key heavy rare earth products, while yttrium oxide shipments fell sharply from April.

China heavy rare earth exports are now being driven less by normal spot demand and more by policy clearance, end-use approval and bilateral tensions. This makes supply planning increasingly difficult for downstream users that need small but critical volumes.

Light rare earth exports moved in the opposite direction. Shipments of cerium oxide, lanthanum carbonate and neodymium metal increased in May as stronger downstream demand and firmer export prices encouraged buyers to purchase more material.

Heavy Rare Earth Controls Tighten Supply to Japan

Japan has been the clearest casualty of China’s heavy rare earth restrictions. It was previously a major consumer of Chinese yttrium oxide, accounting for 57-60% of total shipments.

That flow has changed sharply since January, when Beijing banned exports of dual-use items for Japanese military use or any end-use that could enhance Japan’s military capabilities. The measure followed deteriorating relations after comments on Taiwan by Japanese prime minister Sanae Takaichi.

China exported only 7t of yttrium oxide to Japan in May, while total May yttrium oxide exports fell to 90t from 161t in April. Germany received 55t, France 14t, Russia 6.9t and South Korea 6.2t.

For January-May, China exported 454t of yttrium oxide. South Korea received 111t, Austria 100t, the US 80t, Germany 69t, Vietnam 40t, Russia 20t and Japan only 14t.

Dysprosium flows were also tightly controlled. China exported 8.4t of dysprosium oxide in May, up slightly from April and March, but all shipments in April-May went to South Korea.

Dysprosium metal exports stopped in May after 3t moved to South Korea in April. Exports to Japan have been suspended since January, after 2t was shipped in December 2025.

Terbium exports were even more constrained. China exported no terbium oxide in May after shipping only 0.2t in April. Total January-May exports reached 5.7t, mostly to South Korea.

Terbium metal exports were almost absent in May, while shipments to Japan have been suspended since January. Lutetium oxide exports were also almost absent after 5t moved to the US in April.

Magnet and Aerospace Users Face Licensing Risk

The latest export pattern matters because heavy rare earths are small-volume materials with large strategic importance. Dysprosium and terbium are used to improve high-temperature performance in rare earth permanent magnets.

Those magnets are critical for electric vehicles, wind turbines, robotics, aerospace systems, defence equipment and high-performance industrial motors. Yttrium is also important for ceramics, phosphors, alloys, coatings and aerospace-related applications.

Lutetium is a smaller market, but its supply risk is strategically relevant because many specialty rare earths have few alternative sources. Even small interruptions can affect qualified users because substitution is difficult.

The May data show that South Korea has remained a permitted destination for some heavy rare earth products, especially dysprosium oxide. This could reflect licensing approvals for civilian or qualified end uses.

But the broader message is that buyers cannot rely only on market availability. They must also track export licences, end-user reviews and political relations with Beijing.

The divergence between light and heavy rare earth exports is also important. Light rare earth demand can still rise when prices and downstream consumption support trade, while heavy rare earth flows remain vulnerable to strategic controls.

For non-China supply chains, this reinforces the need for separation, metallization, magnet recycling and heavy rare earth sourcing outside China. However, building that capacity will take time, capital and customer qualification.

Japan’s exposure is especially important because the country has deep magnet, electronics, automotive and precision manufacturing industries. Reduced access to yttrium, dysprosium, terbium and lutetium could force buyers to accelerate inventory strategies and non-China sourcing.

The market should therefore treat May’s export data as more than a trade statistic. It is another signal that heavy rare earth supply is becoming a managed geopolitical channel.

The Metalnomist Commentary

China’s May export data show that rare earth risk is now concentrated in licensing, not only price. For Japan, the US and other advanced manufacturing economies, heavy rare earth security will depend on building supply routes that can survive political friction.

Lynas Rare Earth Revenue Nears Four-Year High as NdPr Output Rises

Lynas Rare Earth

Lynas rare earth revenue reached its highest quarterly level in nearly four years in January-March, supported by stronger rare earth oxide production, higher sales volumes and firmer year-on-year pricing. The Australian producer reported total sales revenue of A$265mn, more than double a year earlier and almost one-third higher than the previous quarter.

Lynas rare earth revenue was underpinned by continued ramp-up across the company’s facilities. The result marks its strongest quarterly sales performance since April-June 2022, showing that operational recovery and strategic offtake demand are beginning to translate into stronger commercial performance.

Lynas produced 3,233t of rare earth oxide during the quarter, up 69% from a year earlier and 36% from the previous quarter. Neodymium-praseodymium oxide output rose to 1,996t, up 32% on the year and 42% on the quarter.

The company also produced its first batch of samarium oxide in March, ahead of its original April target. This matters because samarium supports specialised magnet, defence and high-temperature applications, giving Lynas another product line beyond core NdPr supply.

NdPr Volumes and Price Floors Strengthen Revenue Visibility

Lynas’ sales volumes rose to 3,131t in January-March, up 29% from a year earlier and 33% from the previous quarter. Its average selling price was broadly steady quarter on quarter, but increased by 68% on the year to A$84.60/kg.

The stronger pricing environment supported Lynas rare earth revenue at a time when buyers are increasingly focused on non-China supply. NdPr remains the core feedstock for rare earth permanent magnets used in electric vehicles, wind turbines, robotics, industrial motors and defence systems.

The company also secured several major offtake agreements during the quarter. On 16 March, Lynas signed a binding letter of intent with the US Department of Defence covering a $96mn light and heavy rare earth oxide supply deal over more than four years.

That agreement includes a price floor of $110/kg for NdPr. Price floors are strategically important because they protect non-China suppliers from price downturns that could otherwise undermine project economics.

Lynas also expanded its rare earth supply agreement with Japan Australia Rare Earths on 10 March. Under the deal, Jare will buy at least 5,000 t/yr of NdPr oxide at a price floor of $110/kg and 50% of Lynas’ heavy rare earth output until 2038.

Lynas will supply Japanese producers with up to 7,200 t/yr of NdPr oxide and 75% of its heavy rare earth oxide output over the agreement period. This gives Japan a stronger long-term supply channel while giving Lynas more predictable demand.

Heavy Rare Earths and Metal Production Define the Next Growth Phase

Lynas’ stronger quarter comes as western governments and industrial buyers try to build rare earth supply chains outside China. The company already has a strategic position because it combines upstream mining with rare earth processing capability.

The next growth phase will depend on heavy rare earths and downstream metal production. Heavy rare earths such as dysprosium, terbium and samarium are critical for high-performance magnets operating under heat, stress and demanding industrial conditions.

The expanded Japanese agreement gives Lynas a commercial route for future heavy rare earth output. This could strengthen supply security for automotive, electronics, robotics and clean-energy manufacturers seeking alternatives to China-dominated rare earth flows.

Lynas is also exploring rare earth metal production outside China, including a potential project in Vietnam with South Korea’s LS Eco Energy. This step is strategically important because rare earth oxides alone do not complete the magnet supply chain.

Oxides must be converted into metals and alloys before magnet makers can produce finished permanent magnets. Building metal-making capability outside China would move Lynas further downstream and improve its role in the ex-China magnet ecosystem.

The company’s quarterly performance therefore reflects more than a revenue rebound. It shows a shift toward long-term offtake, price protection, heavy rare earth supply and downstream integration.

The Metalnomist Commentary

Lynas rare earth revenue shows that non-China rare earth suppliers are gaining stronger commercial support from governments and strategic buyers. The key test now is whether Lynas can convert higher oxide output into deeper metal and magnet supply-chain capability outside China.

REalloys Tanbreez Rare Earth Offtake Strengthens Heavy Rare Earth Supply Route

REalloys

REalloys Tanbreez rare earth offtake has moved into a binding 15-year agreement, giving the US rare earth producer long-term access to concentrate from Critical Metals’ Phase 1 Tanbreez project in southern Greenland. The deal replaces a previous letter of intent and strengthens REalloys’ feedstock position for heavy rare earth metals and alloys.

REalloys Tanbreez rare earth offtake covers 15% of monthly production from the project. Phase 1 Tanbreez is expected to produce up to 15,000 t/yr of rare earth concentrate once operations begin.

REalloys Tanbreez rare earth offtake is strategically important because Tanbreez is one of the world’s largest known heavy rare earth element deposits. The project contains significant quantities of dysprosium and terbium, two of the most critical inputs for high-performance permanent magnets.

Pricing will be based on a market-referenced formula with floor-price protection on specified payment elements, subject to finalisation. That structure gives both sides exposure to market value while adding downside protection for selected materials.

Tanbreez Feedstock Supports Heavy Rare Earth Security

Tanbreez gives REalloys a potential long-term concentrate source outside China. That matters because heavy rare earth supply remains one of the most constrained parts of the magnet value chain.

Dysprosium and terbium are especially important because they help permanent magnets maintain performance at high temperatures. These materials are used in electric vehicles, wind turbines, robotics, defence systems, aerospace platforms and advanced industrial motors.

Critical Metals owns 92.5% of the Tanbreez project. The binding offtake agreement gives the project a stronger commercial link to downstream processing and metal production.

The agreement also shows how rare earth buyers are moving earlier into project supply. Securing concentrate before production begins can reduce future feedstock risk and support project financing logic.

However, Tanbreez still needs to move from resource potential to operating supply. The company has not indicated when production will begin, so the timing of actual concentrate deliveries remains a key uncertainty.

REalloys Builds Processing Platform Across Allied Markets

REalloys is positioning itself as a processor and producer of rare earth metals and alloys, not only a project developer. The company aims to begin commercial-scale production of dysprosium, terbium and neodymium metals and alloys in January 2027.

That target is important because rare earth oxides and concentrates must be converted into metals and alloys before they can fully support magnet manufacturing. Metallisation remains a major bottleneck in non-China rare earth supply chains.

REalloys also owns the Hoidas Lake project in Saskatchewan, Canada, and partners with the Saskatchewan Research Council on rare earth separation and processing. These links give the company a North American processing base.

The company also has collaborations in the US, Brazil and Kazakhstan. This broader network suggests REalloys is trying to build diversified feedstock and processing routes rather than relying on a single source.

For western magnet supply chains, that approach is necessary. Heavy rare earth security depends on multiple connected stages: mining, concentration, separation, metal-making, alloying and magnet production.

The Tanbreez agreement therefore adds another piece to the non-China rare earth puzzle. Its value will depend on whether Greenland concentrate can be delivered, separated and converted into qualified metal products at commercial scale.

The Metalnomist Commentary

This agreement shows that heavy rare earth strategy is moving from resource headlines toward long-term feedstock control. REalloys’ challenge is to turn Tanbreez concentrate into qualified dysprosium, terbium and neodymium products before supply-chain pressure intensifies further.

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.

Serra Verde Rare Earth Financing Strengthens Brazil’s Position in Heavy Rare Earth Supply

DFC, Brazil

Serra Verde rare earth financing marks a major strategic step for Brazil’s rare earth industry. The US International Development Finance agency has provided a $565mn package to Serra Verde. The funding includes an option for the US government to take a minority equity stake. As a result, Serra Verde rare earth financing now carries both industrial and geopolitical weight.

This matters because Serra Verde is already producing from its Pela Ema ionic clay deposit in Brazil. The operation entered commercial production in 2024 and currently produces 5,000 t/yr of total rare earth oxides. Its output includes dysprosium, erbium, neodymium, and praseodymium. Therefore, Serra Verde rare earth financing supports an existing project rather than a distant concept.

The funding also arrives at a time when western governments are moving more aggressively into critical minerals. Recent DFC activity has already expanded into copper, tungsten, and other strategic materials. Consequently, Serra Verde rare earth financing fits a much broader push to secure non-Chinese supply routes.

Brazil Rare Earth Project Gains Capital for Expansion and Strategic Relevance

The Brazil rare earth project will use the funding to refinance existing loans and expand capacity. Serra Verde aims to raise output to 6,500 t/yr of total rare earth oxides by 2027. That increase may look modest in absolute terms, but it matters in a market where diversified rare earth supply remains scarce. As a result, the Brazil rare earth project gains both financial flexibility and a clearer growth path.

The ionic clay nature of the deposit adds further importance. Ionic clay rare earths are especially relevant because they can contain valuable magnet and heavy rare earth elements. That makes Serra Verde more strategically attractive than a simple bulk rare earth project. Therefore, Serra Verde rare earth financing strengthens a part of the supply chain that many western buyers want to expand.

The equity option also deserves attention. A financing structure that includes a possible government minority stake suggests unusually strong strategic interest. This is not only about debt support or project refinancing. Meanwhile, it signals that Brazil’s rare earth sector is moving closer to formal alignment with western supply chain security goals.

Heavy Rare Earth Supply Diversification Gives Brazil More Strategic Value

Heavy rare earth supply remains one of the most sensitive areas in the critical minerals market. Dysprosium and similar elements are essential for advanced magnets and high-performance industrial uses. Projects that can produce these materials outside concentrated supply chains attract far more attention than simple reserve size alone. Consequently, Serra Verde rare earth financing helps position Brazil more clearly in the strategic supply map.

Brazil’s wider resource base reinforces that story. The country holds one of the world’s largest rare earth reserve positions and is already drawing more developer attention. Companies such as Aclara, Brazilian Rare Earths, and Meteoric are also advancing projects there. Therefore, Serra Verde rare earth financing may become a signal for broader investment momentum across Brazil.

The broader implication is clear. Supply chain diversification is no longer only about finding resources. It is about financing operating projects, expanding production, and tying new supply into aligned trade relationships. As a result, Brazil is becoming more important not just as a resource holder, but as a future processing and supply partner.

The Metalnomist Commentary

This deal matters because it supports a producing rare earth asset with real expansion potential. Serra Verde is now moving beyond startup status and into strategic scale-up territory. If output rises as planned, Brazil could gain a much stronger role in non-Chinese rare earth supply over the next few years.

Jogmec Toyota Tsusho Rare Earth Stake Strengthens Japan’s Heavy Rare Earth Strategy

Toyota Tsusho

Jogmec Toyota Tsusho rare earth stake plans mark another step in Japan’s effort to secure heavy rare earth supply outside China. Japan’s state-owned energy agency Jogmec has selected Toyota Tsusho as the winning bidder to take over part of its 40pc option interest in the Lofdal heavy rare earth project in northwestern Namibia.

The Lofdal project contains heavy rare earth elements including dysprosium and terbium. These materials are critical for high-performance permanent magnets used in electric vehicle motors, wind turbines, robotics, defense systems, and advanced electronics.

The Jogmec Toyota Tsusho rare earth stake transfer could help move the project closer to commercialization. It also shows how Japan is using state-backed investment, trading house networks, and overseas resource partnerships to reduce exposure to China-dominated rare earth supply chains.

Lofdal Project Offers Japan a Potential Non-China Heavy Rare Earth Source

The Lofdal heavy rare earth project has strategic importance because dysprosium and terbium are among the most supply-sensitive rare earth elements. Both are used to improve magnet performance under high-temperature and high-stress operating conditions.

Canada’s Namibia Critical Metals and Jogmec have jointly explored the project since 2020. Jogmec acquired its 40pc option interest in 2023, and the partners released a pre-feasibility study in January 2026.

The project is now moving through a definitive feasibility study ahead of a final investment decision. Toyota Tsusho’s participation could support development momentum, particularly if future offtake structures are aligned with Japan’s industrial demand.

Toyota Tsusho Role Connects Mining Risk With Industrial Supply Chains

Toyota Tsusho’s role matters because Japanese trading houses often bridge upstream mining projects and downstream manufacturers. The company’s involvement could help connect Namibian heavy rare earth supply with Japan’s automotive, magnet, electronics, and clean energy industries.

Japan’s rare earth supply chain faces a structural challenge. Heavy rare earth production and separation remain highly concentrated in China, while demand is rising from EVs, wind power, and advanced manufacturing.

The Jogmec Toyota Tsusho rare earth stake therefore reflects a broader resource security strategy. Japan is not only seeking mineral access, but also trying to build more resilient supply routes for magnet materials that underpin electrification and industrial competitiveness.

The Metalnomist Commentary

Japan’s move into the Lofdal project shows that heavy rare earth security depends on early-stage project positioning, not only finished oxide purchasing. If Lofdal advances, Namibia could become an important part of Japan’s non-China magnet materials strategy.

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.

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.

USAR Rare Earth Separation Plant Starts Operations in Colorado

US rare earths

USAR rare earth separation capacity has taken another step forward after USA Rare Earth commissioned its hydrometallurgical demonstration plant in Wheat Ridge, Colorado. The facility will produce separated heavy rare earth oxides, with initial output scheduled for the third quarter of 2026.

USAR rare earth separation will target strategically important materials including dysprosium, terbium and yttrium. These elements are critical to high-performance magnets, aerospace, defence, electronics and other advanced manufacturing applications.

USAR rare earth separation is especially significant because heavy rare earth processing remains one of the most concentrated stages of the global supply chain. Developing domestic separation capability could reduce US dependence on overseas processing.

The Wheat Ridge facility will also test multiple feedstock routes, allowing USAR to process mined material alongside recycled magnet waste.

Three Feedstocks Test a Flexible Heavy Rare Earth Supply Model

The Wheat Ridge plant is designed to process three flowsheets in parallel. These include ore from USAR's Round Top project in Texas, material from the Serra Verde Pela Ema mine in Brazil and magnet swarf from manufacturing operations.

This diversified feedstock strategy is strategically important. A separation facility capable of handling both primary resources and recycled material can reduce dependence on a single mine or supply route.

Round Top provides a potential domestic US feedstock source, while Serra Verde gives USAR exposure to Brazilian heavy rare earth resources.

Magnet swarf adds a recycling pathway. Manufacturing waste can contain valuable neodymium, dysprosium, terbium and other rare earths that can be returned to the supply chain instead of being discarded.

The combination creates the basis for a more circular rare earth system connecting mining, recycling and downstream separation.

The plant's automation and real-time process monitoring should also generate technical data required for commercial scale-up. In rare earth processing, consistent purity, recovery and process control are essential before technology can move into large-scale production.

Federal Funding Supports USAR's Integrated Rare Earth Strategy

USAR has secured access to as much as $1.6bn in US government funding, providing significant financial support for its wider rare earth strategy.

The company is attempting to build an integrated supply chain extending beyond mining into separation, metals, alloys and permanent magnets.

Its planned acquisition of Serra Verde would further strengthen that structure by adding an operating Brazilian heavy rare earth resource. The transaction remains subject to regulatory scrutiny in Brazil.

Heavy rare earths are especially important because dysprosium and terbium are used to improve the temperature resistance of NdFeB permanent magnets.

These magnets are critical to electric motors, defence systems, robotics, aerospace and other high-performance applications.

For the US, securing access to ore alone is therefore insufficient. Separation capacity is essential because mixed rare earth feedstock must be converted into individual high-purity oxides before downstream metallisation and magnet production.

The Colorado demonstration plant gives USAR an opportunity to prove that capability across several feedstock types before moving toward larger-scale production.

The Metalnomist Commentary

USAR's Colorado plant targets one of the hardest bottlenecks in the non-China rare earth chain: heavy rare earth separation. Its ability to process both mined feedstock and magnet waste could become strategically valuable if the technology proves scalable.

Neo Heavy Rare Earth Separation Advances Europe’s Magnet Supply Chain

Neo Performance Materials

Neo heavy rare earth separation has reached a key milestone after Canada-based Neo Performance Materials produced its first separated terbium and dysprosium process solutions at its Silmet facility in Estonia. These solutions are precursors to terbium and dysprosium metal, both of which are essential for high-performance permanent magnets.

Neo heavy rare earth separation is strategically important because all processing for the new line is completed within Europe. This gives the region a rare ex-China pathway for heavy rare earth separation at a time when supply pressure remains high.

Neo heavy rare earth separation also supports the company’s broader plan to build a vertically integrated rare earth magnetics value chain in Europe. The company is advancing its European permanent magnet facility in Estonia and aims to reach commercial production in 2026.

Silmet Facility Adds Heavy Rare Earth Separation Capacity

Neo has commissioned a small-scale heavy rare earth solvent extraction production line at its Silmet facility. The line produced terbium and dysprosium process solutions from mixed heavy rare earth carbonate feedstock.

The line is now operating at nameplate capacity and can reach maximum throughput. Neo is now focused on achieving stable product purity before moving into routine production.

This step matters because separation is one of the most difficult and strategically sensitive parts of the rare earth value chain. Mining or carbonate feedstock alone does not create supply security unless it can be separated, refined and converted into metals and magnets.

Terbium and dysprosium improve magnet performance under high-temperature operating conditions. That makes them critical for electric vehicles, wind turbines, robotics, industrial motors and other advanced manufacturing applications.

Export Controls Increase Pressure for Ex-China Supply

Terbium and dysprosium remain primarily produced in China. Both materials have been subject to Chinese export controls since 4 April 2025, tightening availability outside China and raising pressure on downstream users.

Supply outside China has fallen sharply since the controls were implemented. This has supported high dysprosium and terbium prices and increased urgency among western governments and manufacturers to build alternative supply chains.

Neo’s Estonia operation directly addresses this gap. By adding heavy rare earth separation inside Europe, the company strengthens regional capacity for magnet materials that support clean energy, defense, automation and advanced industrial systems.

The project also complements Neo’s planned permanent magnet facility in Estonia. If separation, metal conversion and magnet production can be aligned, Europe could reduce dependence on imported heavy rare earth inputs and strengthen industrial resilience.

The Metalnomist Commentary

Neo’s Estonia milestone shows that Europe’s rare earth strategy is moving from policy ambition into industrial execution. The next challenge is scaling purity, throughput and magnet production fast enough to meet demand from EVs, wind power and defense supply chains.

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.