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.

CREG Rare Earth Separating Plant Strengthens China’s Downstream Processing Base

China Rare Earth Group

CREG rare earth separating plant plans in Guangdong show that China is still expanding control over the most important midstream stage of the rare earth value chain. China Rare Earth Group will build a new rare earth separating production line in Conghua district of Guangzhou through its wholly owned subsidiary Guangzhou Jianfeng.

The CREG rare earth separating plant will require investment of 216mn yuan and is designed for 3,000 t/yr of rare earth separation capacity. The first phase will have 350 t/yr of capacity and will focus on high-end customised rare earth products.

The CREG rare earth separating plant matters because separation remains one of the most strategic bottlenecks in rare earth supply chains. Mining alone does not create usable industrial material. Rare earth ores and concentrates must be separated, purified and converted into products that can feed magnets, phosphors, catalysts, electronics and defence applications.

Guangzhou Jianfeng plans to relocate because its old site has limited quality improvement and sustainable development. The new Conghua facility is intended to support rare earth deep-processing products and new materials manufacturing.

Guangdong Project Targets Higher-Value Rare Earth Products

The Guangdong project is not simply a volume expansion. Its first phase will focus on customised high-end products, indicating that CREG wants stronger capability in specialised rare earth materials rather than only bulk separation.

This is important because rare earth demand is becoming more application-specific. Magnet makers, electronics producers, optical materials suppliers and defence manufacturers require tighter purity, consistency and product tailoring.

The move also supports China’s strategy of keeping more value inside its rare earth chain. China already dominates mining quotas, separation, metal-making and magnet production. Additional customised separation capacity strengthens that downstream control.

Guangzhou Jianfeng has not disclosed the launch date for the first phase or the full construction and start-up timeline. However, the decision to build the plant shows continued capital allocation into rare earth processing despite global efforts to diversify supply away from China.

The location in Guangdong is also relevant. Guangdong is a major manufacturing province with strong links to electronics, advanced materials and export-oriented industrial supply chains. A new separation and deep-processing platform there could improve service to high-specification customers.

High-Purity Separation Reinforces CREG’s Strategic Role

CREG’s wider separation platform is also expanding through other subsidiaries. Yongzhou Rare Earth in Hunan has already put a 5,000 t/yr rare earth separating project into operation.

The Yongzhou facility has achieved purities of 99.99-99.999% for several rare earth products, including europium, terbium, yttrium, thulium, ytterbium and lutetium. These high-purity materials are critical for advanced applications where ordinary commercial-grade products are not sufficient.

Heavy and specialty rare earths such as terbium, yttrium and lutetium are especially strategic. They support magnets, lasers, phosphors, ceramics, medical imaging, defence systems and other high-performance technologies.

CREG’s financial performance also improved. Revenue rose by 13% year on year to 820.74mn yuan in January-March, while profit increased by 91% to 138.55mn yuan.

The company also posted 2025 revenue of 3.18bn yuan, up 5.1% from the previous year. Net profit reached 172.57mn yuan, reversing a loss of 286.9mn yuan in 2024.

That recovery gives CREG more room to invest in downstream capacity. It also shows that China’s rare earth sector is moving from price volatility and consolidation toward higher-value processing and specialised product growth.

For global buyers, the message is clear. While the US, Europe, Japan and Australia are trying to build non-China rare earth supply chains, China is not standing still. It is expanding separation capacity, improving purity and deepening its manufacturing advantage.

The Metalnomist Commentary

CREG’s Guangdong project reinforces the real challenge in rare earth diversification: separation and customised processing remain the decisive bottlenecks. Western supply chains cannot compete with China by mining alone; they need high-purity, application-ready material at industrial scale.

China Rare Earth Group management changes: CREG defends leadership reshuffle

China Rare Earth Group

China Rare Earth Group management changes drew a rare public defense from CREG. The company said the reshuffle improves governance and retains executives in other roles. However, China Rare Earth Group management changes arrive as Beijing tightens rare earth export controls.

Why the reshuffle matters to global rare earth supply

CREG framed the moves as corporate governance optimization, not disruption. Meanwhile, rumors followed multiple senior resignations in recent months. The firm warned it may pursue action against false market claims. Therefore, China Rare Earth Group management changes seek stability during an industry flashpoint.

Export controls and consolidation reshape market power

China expanded export controls on several medium and heavy rare earths and magnets. As a result, pricing and allocation risks have risen for overseas buyers. CREG and state-owned NRE now oversee most domestic mining quotas. Consequently, China Rare Earth Group management changes intersect with rising state-led consolidation.

CREG emerged in 2021 to concentrate heavy rare earth resources. The group anchors China’s dominant refining capacity across NdPr, Dy, and Tb. Market participants now watch policy, quotas, and magnet supply for signals. Therefore, procurement teams should diversify sources and reinforce strategic inventories.

The Metalnomist Commentary

CREG’s message aims to steady nerves while policy tools tighten market leverage. Governance clarity can temper speculation, but export controls keep risk elevated. Buyers should hedge exposure with multi-region offtakes and recycling initiatives.

China Rare Earth Resources Expand as Maoniuping REO Estimate Nearly Doubles

China Natural Resources

China rare earth resources have received another major boost after the natural resources ministry confirmed 9.67 million tonnes of rare earth oxide resources at the Maoniuping mining area in Sichuan province. The updated estimate nearly doubles the 4.96 million tonnes of REO previously reported by China Rare Earth Group in September 2024.

The Maoniuping mine is operated by China Rare Earth Group, the country’s largest state-owned rare earth producer. The new resource verification strengthens China’s upstream position in a sector where it already dominates separation, refining, magnet materials, and downstream industrial applications.

China rare earth resources remain central to global supply chains for electric vehicles, wind turbines, defense systems, robotics, electronics, and advanced manufacturing. The larger Maoniuping resource base gives Beijing more long-term optionality as rare earth demand rises and geopolitical competition intensifies.

Maoniuping Reinforces China’s Rare Earth Industrial Advantage

The Maoniuping update is strategically important because China’s rare earth strength is not limited to mining. The country controls the most advanced and integrated rare earth processing system, from ore extraction to separated oxides, metals, alloys, and permanent magnets.

A larger confirmed REO resource base supports that industrial chain. It gives China Rare Earth Group a stronger reserve platform and reinforces Beijing’s ability to manage supply, pricing, and export policy across rare earth markets.

The timing also matters. China has pledged to launch a new round of mineral exploration actions over the next five years, aiming for breakthroughs in strategic resources. The Maoniuping result shows how exploration and state-backed consolidation are working together to protect China rare earth resources and industrial competitiveness.

Antimony Discovery Adds Weight to Strategic Mineral Policy

China also confirmed antimony resources equivalent to 51,455 tonnes of metal at the Waxigou mine in Gansu province. The project is held by Gansu Sanchang Mining and adds another resource point in a market already affected by tight supply and export controls.

Antimony has become more strategically visible because it is used in flame retardants, alloys, semiconductors, ammunition, and defense-related applications. China accounts for a dominant share of global refining capacity, making any new domestic resource confirmation important for both supply security and policy leverage.

Beijing has already placed antimony and rare earths under stricter dual-use export licensing controls. As a result, ex-China supply has tightened, prices have surged, and overseas buyers are reassessing dependence on Chinese-controlled critical mineral chains.

The Metalnomist Commentary

China’s latest rare earth and antimony confirmations show that Beijing is strengthening both the upstream and regulatory sides of critical mineral control. For the US, EU, Japan, and Korea, the message is clear: diversification must include mining, refining, recycling, and advanced material production, not just alternative offtake contracts.

Neo Rare Earth Recycling Deal Strengthens Circular Magnet Supply Chain

Neo performance materials

Neo rare earth recycling plans with Cyclic Materials will support a more circular supply chain for rare earth magnets in Europe and North America. The agreement allows Neo Performance Materials to feed recovered rare earth elements into its alloy and magnet manufacturing operations.

Neo rare earth recycling also aligns with the EU Critical Raw Materials Act, which aims to increase rare earth processing and recycling capacity. This is important because Europe needs more secure access to magnet materials used in EVs, wind turbines, robotics, automation, defence systems, and advanced electronics.

Cyclic Materials recovers rare earth elements from magnet production scrap and end-of-life magnet-bearing materials. Under the agreement, Neo will supply magnet production scrap from its European operations to Cyclic, which will recycle the material into mixed rare earth oxide.

Recycled Rare Earth Oxides Support Neo’s Magnet Platform

Neo will receive mixed rare earth oxides and related products from Cyclic. These materials will come from end-of-life magnets and third-party magnet manufacturing scrap, creating a secondary feedstock stream for Neo’s downstream operations.

This structure matters because rare earth magnet supply chains remain highly exposed to China-dominated processing and refining capacity. Recycling does not eliminate the need for primary rare earth mining, but it can improve resilience, reduce waste, and support traceable supply for strategic customers.

Neo operates a 2,000 t/yr magnet production facility in Estonia and plans to expand it to 5,000 t/yr. A reliable recycled feedstock channel could become more valuable as European magnet production scales and customers demand stronger ESG and supply-chain security credentials.

Cyclic Expands North American Rare Earth Recycling Capacity

Cyclic is building a rare earth recycling campus in South Carolina with initial processing capacity of 2,000 t/yr of magnets. The site is expected to produce 600 t/yr of mixed rare earth oxide, with expansion plans to reach 6,000 t/yr of magnet processing and 1,800 t/yr of MREO output.

The company also has an agreement with Vacuumschmelze to recycle production scrap from the German group’s Sumter, South Carolina, magnet facility. This shows that rare earth recycling is moving from pilot concepts toward integrated industrial supply agreements.

The Neo-Cyclic partnership connects European magnet manufacturing, North American recycling capacity, and recycled rare earth oxide supply. That model could become increasingly important as governments push for domestic and allied rare earth value chains outside China.

The Metalnomist Commentary

Rare earth recycling is becoming a strategic complement to mining and separation, not a side activity. The key advantage will go to companies that can connect scrap collection, oxide recovery, alloying, and magnet production into one qualified supply chain.

Shenghe Resources Expands Rare Earth Capacity with Jiahua Acquisitions

Shenghe Resources

Chinese rare earth giant Shenghe Resources has announced its acquisition of significant stakes in rare earth separation plants Jiangyin Jiahua and Zibo Jiahua, aiming to boost its production capacity and strengthen market competitiveness. The move underscores Shenghe's strategic commitment to enhancing its global footprint and securing supply chains amid fluctuating market conditions.

Strategic Acquisitions in Rare Earth Separation

Through its wholly-owned subsidiary, Ganzhou Chenguang Rare Earth New Materials, Shenghe Resources will acquire an 86% stake in Jiangyin Jiahua for 182.71 million yuan ($25.61 million) and 95% of Zibo Jiahua for 29.38 million yuan from Canadian-based Neo Performance Materials. Shenghe will gain full ownership of Zibo Jiahua by purchasing the remaining 5% stake from Zibo Shijia Industrial and Trading.

• Jiangyin Jiahua, based in Jiangsu, has an annual separation capacity of 3,800 tonnes of high-purity rare earth oxide (REO).
• Zibo Jiahua, located in Shandong, can process 5,500 tonnes per year of bastnaesite rare earth ores.

Zibo Jiahua has also invested 500 million yuan to construct an 8,000 t/yr plant for high-performance rare earth catalytic materials, vital for reducing emissions from internal combustion engines. Upon completion, this facility is expected to dominate 30-35% of the global market for catalytic materials.

A Focus on Global Expansion

Shenghe Resources continues to expand its international presence:

1. Ngualla Project: Shenghe increased its stake in the Tanzanian rare earth mining company Ngualla Group UK Limited, co-owned by Peak Rare Earths (PRR), to develop the Ngualla project.
2. Vital Metals: Shenghe acquired an 18.2% stake in the Australian rare earth exploration firm Vital Metals, which holds assets like the Nechalacho mine in Canada and the Wigu Hill deposit in Tanzania.
3. Vietnam Rare Earth Partnership: Shenghe's subsidiary reached an agreement with Blackstone Minerals to establish a fully-integrated rare earth value chain in Vietnam.

Market Challenges and Financial Outlook

Despite aggressive expansion, Shenghe expects a net loss of 48-72 million yuan for the first half of 2024, citing reduced sales prices and falling gross profit margins. This contrasts sharply with the company’s 83.97 million yuan net profit in the same period last year. The drop is attributed to the slump in rare earth and zirconium-titanium prices and increased raw material costs.

Shenghe remains optimistic, highlighting firm downstream demand and increased output of rare earth oxides, salts, and metals in 2023. These expansions position Shenghe as a key player in securing a resilient and diversified rare earth supply chain.

Xiamen Tungsten to Construct High-Performance Magnet Plant in Inner Mongolia

Xiamen Tungsten, a major state-owned Chinese metals producer, has announced plans to build a high-performance neodymium-iron-boron (NdFeB) magnet manufacturing plant in Baotou, Inner Mongolia. The plant is part of a joint venture with its wholly-owned subsidiary, Fujian Golden Dragon Rare Earth, and will operate under the name Golden Dragon Rare Earth (Baotou). The facility, representing a total investment of 462.22 million yuan (approximately $65 million), is set to begin operations in the first half of 2026 and will have an initial production capacity of 5,000 tons per year.

This strategic move underscores Xiamen Tungsten's commitment to expanding its presence in the high-performance magnet sector, which is crucial for various advanced technologies, including electric vehicles and renewable energy systems. The company's decision to establish the plant in Baotou is likely influenced by the city's abundant rare earth resources, which make it a key hub for China’s rare earth industry.

However, Xiamen Tungsten has faced some financial challenges in its rare earth division this year. In the first half of 2024, the company reported a year-on-year revenue decline of 8.37%, totaling 17.16 billion yuan. Despite this, the company's overall profit rose by 28.29% to 1.01 billion yuan, largely due to cost-cutting measures and efficiency improvements in other sectors.

The rare earths division, in particular, saw revenues fall by 26.66% in the first quarter to 912 million yuan, with profits plummeting by 64.79% to 40 million yuan. This decline is attributed to the company’s consolidation with China Rare Earth Group (CREG), the nation’s largest state-owned rare earths firm. Since late 2023, Xiamen Tungsten’s subsidiaries, Longyan Rare Earth and Golden Dragon Rare Earth, have been integrated into CREG, resulting in Xiamen Tungsten no longer being the controlling shareholder. The consolidation, coupled with falling rare earth prices and intense market competition, has negatively impacted the profitability of Xiamen Tungsten’s rare earth processing operations.

The new venture with Fujian Golden Dragon Rare Earth is seen as an effort to revitalize the company's position in the rare earths market and to leverage the growth potential in high-performance NdFeB magnets. CREG and Xiamen Tungsten have also created another joint venture, China Rare Earth Xiamen Tungsten (Fujian) Rare Earth Mining, where CREG holds a 51% stake, leaving Xiamen Tungsten with 49%.

China’s Shenghe Resources Acquires Jiahua Plants to Boost Rare Earth Production Capacity

In a strategic move to enhance its market presence, Shenghe Resources, a leading Chinese rare earth producer, announced its acquisition of significant stakes in Jiangyin Jiahua and Zibo Jiahua, two major rare earth separation plants. The acquisition, made through Shenghe’s wholly-owned subsidiary, Ganzhou Chenguang Rare Earth New Materials, is expected to bolster Shenghe's production capacity of rare earth oxides (REO) and improve its competitiveness in the global market.

Ganzhou Chenguang will purchase an 86 percent stake in Jiangyin Jiahua for 182.71 million yuan ($25.61 million) and a 95 percent stake in Zibo Jiahua for 29.38 million yuan ($4.11 million) from Toronto-based Neo Performance Materials. Following the transaction, Ganzhou Chenguang will fully own Zibo Jiahua after acquiring the remaining 5 percent stake from Zibo Shijia Industrial and Trading.

These acquisitions will significantly increase Shenghe Resources’ rare earth separation output. Jiangyin Jiahua, based in Jiangsu, specializes in the production of high-purity rare earth oxide and co-sediment products, with a current separation capacity of 3,800 tons per year of REO. Meanwhile, Zibo Jiahua, located in Shandong, boasts an output capacity of 5,500 tons per year for bastnaesite rare earth ores. Zibo Jiahua recently halted its light rare earth separation operations to optimize capital return, reduce earnings volatility, and mitigate concentration risk within China.

Furthermore, Zibo Jiahua has invested 500 million yuan to construct an 8,000 tons per year plant for producing high-performance rare earth catalytic materials used in exhaust catalysts to reduce emissions from internal combustion engines. If this plant reaches full operational capacity, Zibo Jiahua will become the largest producer of catalytic materials in China and globally, commanding 30-35 percent of the world market.

Shenghe Resources has also been actively pursuing global expansion to secure resources and enhance its supply chain resilience. The company recently announced plans to acquire an additional 50 percent interest in the Tanzanian rare earth mining company Ngualla Group UK Limited, in partnership with Australian firm Peak Rare Earths. Shenghe has also expanded its influence in Australia, acquiring an 18.2 percent stake in Vital Metal, an Australian rare earth exploration firm, and has reached a preliminary agreement with Blackstone Minerals to build an integrated rare earth value chain in Vietnam.

Despite these expansions, Shenghe Resources has forecasted a net loss of 48-72 million yuan in the first half of 2024, attributing the downturn to declining prices of rare earth and zirconium-titanium products, alongside increased costs of raw materials such as imported ore concentrates.

ReElement rare earth scaleup secures $22mn for US critical minerals

ReElement

ReElement rare earth scaleup takes a major step with $22mn in fresh funding. The US refiner will expand production of rare earth oxides, lithium carbonates and other defense critical minerals at its Indiana facilities. As a result, the ReElement rare earth scaleup directly supports Washington’s push for resilient, non Chinese critical mineral supply chains.

Funding package strengthens US rare earth separation capacity

The ReElement rare earth scaleup relies on a blended funding package from private and federal sources. Maxus Capital Group provided a $20mn equipment leasing facility to finance large scale processing equipment. This capital will expand production lines at ReElement’s Marion and Noblesville sites in Indiana.

In parallel, the US Department of Defense awarded ReElement an additional $2mn grant. The DoD support aims to strengthen domestic separation and purification of critical minerals for defense applications. Therefore, the ReElement rare earth scaleup aligns directly with US national security priorities and allied sourcing strategies.

The combined $22mn allows ReElement to move from pilot scale toward more meaningful commercial volumes. However, the company must still demonstrate consistent operations and competitive unit costs against established Asian processors. Successful ramp up would mark a significant milestone for US based rare earth refining.

Patented technology underpins ReElement rare earth scaleup

Advanced processing technology sits at the heart of the ReElement rare earth scaleup. The company uses a patented method to produce 99.5% pure rare earth oxides. These include neodymium, dysprosium and terbium, which are essential for high performance permanent magnets.

ReElement can treat diverse feedstocks, including ores, recycled magnets and manufacturing waste. This flexibility supports both primary mining projects and a growing magnet recycling ecosystem. Meanwhile, the Marion facility also produces lithium carbonate from lithium iron phosphate black mass. That capability links the ReElement rare earth scaleup to battery recycling, not just magnet supply chains.

By combining rare earth separation and lithium carbonate production, ReElement positions itself as a multi stream critical mineral refiner. Therefore, its growth trajectory will matter for magnet makers, EV battery supply chains and defense contractors alike. Investors will watch how quickly the company can qualify products with downstream customers.

The Metalnomist Commentary

ReElement’s progress shows how relatively modest capital injections can unlock strategic capacity in rare earths and battery materials. The mix of DoD backing and private leasing underscores growing comfort with asset light financing structures in critical minerals. Market participants should track offtake deals and product qualification, which will determine whether this scaleup becomes a true pillar of US magnet and battery raw material supply.

Baogang to Boost Rare Earth Concentrate Output Amid Growing Demand

Baogang

China’s Leading Steelmaker Targets 390,000t Rare Earth Output in 2025

Chinese steel giant Baogang Group plans to increase its rare earth concentrate output in 2025 to meet surging downstream demand. The company will raise its output to 390,000 tonnes, equivalent to 195,000 tonnes of 50% rare earth oxide (REO) content. This would mark a steady increase from 370,000 tonnes in 2024 and 320,000 tonnes in 2023.

Rare Earth Demand Drives Quota Expectations

Market participants expect China to raise its rare earth mining quotas by 8–10% in 2025. Growth in magnet production and other downstream applications has continued to drive demand for REO. Baogang operates the Bayan Obo mine, the world’s largest rare earth site, which holds 35 million tonnes of REO reserves. This mine represents 81% of China’s total rare earth resources.

Baogang supplies all of its rare earth concentrate to Northern Rare Earth (NRE), China’s largest light rare earth producer. NRE’s mining quota rose to 188,650 tonnes in 2024, accounting for 75% of the nation’s total light rare earth quota.

Revenues Under Pressure Despite Output Growth

Baogang earned ¥9.1 billion ($1.25 billion) from rare earth concentrate sales in 2023, making up nearly 13% of its total revenues. While 2024 revenue figures have yet to be released, NRE expects its 2024 net profits to fall sharply to ¥950 million–¥1.08 billion, down more than 54% year-on-year.

The decline stems from a combination of factors, including weak global economic conditions, excess supply, rising recycling capacity, and sluggish downstream demand. Competition has intensified in application markets, putting further pressure on rare earth prices and margins.

Shenghe Resources Acquires Significant Interest in Ngualla Rare Earth Project

Chinese rare earth producer Shenghe Resources is set to acquire an additional 50% interest in the Tanzanian rare earth mining company Ngualla Group UK Limited (NGUK), aiming to further develop the Ngualla project in Tanzania. This acquisition, valued at A$96 million (approximately $63.38 million), will enhance Shenghe's cooperation with Australian mining company Peak Rare Earth (PRE), which currently owns NGUK and holds an 84% stake in the Ngualla project.

This strategic move will significantly increase Shenghe's equity in the Ngualla project, accelerating its development and anticipated start-up. Upon the project's commencement of commercial production, Shenghe will be entitled to 55% of net profits or losses after taxes within the first five years, due to its technical expertise and financial contributions.

Shenghe had previously acquired a 19.9% stake in PRE in early 2022, becoming its largest shareholder. In August 2023, Shenghe and PRE signed a binding offtake agreement, securing Shenghe's access to 100% of the rare earth concentrate or at least 50% of intermediate and final rare earth products from Ngualla.

Construction of the Ngualla project began at the end of May, with completion expected by early 2026. The project is designed to produce 37,200 tons per year of rare earth oxide equivalent from 800,000 tons of processed rare earth ores annually. The Ngualla site boasts rare earth resources of 4.61 million tons of rare earth oxide (REO) and reserves of 887,000 tons of REO, with an average grade of 4.8% and a praseodymium-neodymium oxide content of 21.26%.

Shenghe has been actively expanding its global resource base to enhance its supply chains and profitability. The company recently acquired an 18.2% stake in Australian rare earth exploration firm Vital Metal, which operates the Nechalacho bastnaesite mine in Canada and the Wigu Hill deposit in Tanzania. Additionally, Shenghe's holding company, Vietnam Rare Earth, has reached a preliminary agreement with Australian developer Blackstone Minerals to establish a fully-integrated rare earth value chain in Vietnam.

China’s CREG Discovers Major Rare Earth Deposit in Sichuan

China’s CREG

China Rare Earth Group (CREG), the country’s largest state-owned rare earth enterprise, has announced the discovery of a significant rare earth deposit at the Maoniuping mine in Mianning county, Sichuan province. The site contains an estimated 4.96 million tonnes of rare earth oxide (REO), making it one of China’s largest deposits of light rare earth elements.

The Maoniuping mine is owned by Sichuan JCC Rare Earth, a domestic producer of rare earth materials. CREG became the largest shareholder of the company in January 2023 after acquiring a 51% stake from Jiangxi Copper, a non-ferrous metals producer. The remaining stakes are held by investment firms Sichuan Shuyu Mining Investment and Mianning Investment Development.

Strategic Importance of Maoniuping and Global Demand

Maoniuping is China’s second-largest light rare earth site, with a target production capacity of 30,000 tonnes of REO bastnaesite concentrates. The discovery is expected to contribute significantly to China’s rare earth supply, which is crucial for high-performance permanent magnets used in various advanced technologies. Market projections suggest that global consumption of these magnets could grow from 102,500 tonnes in 2023 to 227,100 tonnes by 2028, driven by a compound annual growth rate of 17.2%.

However, CREG reported a challenging first half of 2024, with a 52.77% year-on-year drop in revenue, amounting to 1.15 billion yuan ($164 million), and a net loss of 244 million yuan due to declining rare earth prices and large inventories purchased at higher prices.

Looking ahead, CREG is also investing in expanding rare earth separation projects, with a new facility in Fujian province expected to start operations by the end of 2025.

Baogang wins rare earth alloy steel tender

Baogang

Baogang wins rare earth alloy steel tender for the world’s biggest hydropower dam. The contract covers 62,000t of rare earth alloy steels for the Yarlung Tsangpo project. As a result, demand signals strengthen for special steels and rare earth inputs.

Tender underscores China’s megaproject steel needs

Baogang wins rare earth alloy steel tender as construction started on 19 July. The Tibet project targets record hydropower capacity and unprecedented steel intensity. Industry estimates suggest 4–6mn t of special steel will be required. Meanwhile, Baogang’s plate capacity and alloy know-how position it well for execution.

Vertical integration links alloy steels and rare earths

Baogang wins rare earth alloy steel tender while leveraging Bayan Obo resources. The group controls one of the largest rare earth mines with 35mn t REO reserves. It sells all concentrate to Northern Rare Earth, where it holds a 37pc stake. This integration supports alloying elements and process stability for long-lead deliveries.

Baogang expands volumes across core products in 2025. Targets include 14.62mn t iron, 15.64mn t crude steel, and 14.76mn t billets. Plans also include 390,000t of rare earth concentrate and 650,000t of fluorite concentrate. Therefore, the dam award should lift utilization and product mix quality.

Project momentum could aid Baogang’s financials after a softer first quarter. January–March revenue reached Yn15.433bn, down 13pc year on year. Net profits fell by 29.33pc, highlighting price and cost pressures. However, the tender should boost steel sales and margins as deliveries ramp.

The Metalnomist Commentary

This award tightens the link between China’s infrastructure push and rare earth alloy steel demand. Expect knock-on effects for special steel pricing and magnet-grade rare earth flows. Suppliers should align production schedules with the project’s backloaded steel demand curve.

USAR acquires Less Common Metals to accelerate mine-to-magnet strategy

USA Rare Earth

USAR acquires Less Common Metals in a $125mn deal that reshapes non-Chinese rare earth supply chains. The USAR acquires Less Common Metals transaction combines upstream resources, metal production and magnet alloys into one integrated platform. As a result, USAR acquires Less Common Metals to strengthen Western access to critical rare earth magnet materials.

USAR acquires Less Common Metals to secure rare earth metals and alloys

USAR acquires Less Common Metals through a mix of $100mn cash and 6.74mn USAR shares. The acquisition brings LCM’s Cheshire plant, which produces light and heavy rare earth metals and strip cast magnet alloys. LCM supplies samarium, samarium–cobalt, neodymium praseodymium, terbium, yttrium and gadolinium for permanent magnet applications. This portfolio anchors USAR’s move into high-value magnet metals rather than only rare earth oxides. LCM is the only large-scale producer of such metals and alloys outside China, making its assets strategically important. Therefore the deal immediately boosts Western capacity along the magnet value chain. USAR plans to expand LCM’s UK production footprint to meet rising demand from defense, automotive and industrial customers.

Building an integrated mine-to-magnet platform in the US and UK

USAR will integrate LCM’s know-how into its Stillwater, Oklahoma, facility to support a planned 5,000 t/yr magnet plant. This integration creates a tighter loop from rare earth metal production into finished magnet manufacturing. At the same time, USAR’s Round Top rare earth deposit in Texas will underpin long-term feed for metals and alloys. The company also highlights its ability to process recycled rare earth oxides, adding a circular element to the supply chain. Together, these assets form a closed-loop mine-to-magnet model spanning mining, metals, alloys and recycling. LCM’s established customer relationships across US and European magnet makers, as well as defense and automotive supply chains, provide immediate market access. As a result, the combined group can offer Western buyers secure, non-Chinese supply options for critical rare earth magnet materials.

The Metalnomist Commentary

This acquisition underscores how quickly mine-to-magnet integration is becoming a strategic priority in the rare earth sector. If USAR executes on its expansion plans, it will sit at the center of a transatlantic magnet supply chain that reduces reliance on Chinese metal and alloy producers. For policymakers and OEMs, the deal offers a concrete example of how capital, geology and processing know-how must align to de-risk critical materials.

Finland Sokli Phosphate Project Gains State Backing as Europe Seeks Raw Materials Security

Finnish Minerals Group

The Finland Sokli phosphate project has gained new momentum after the Finnish government approved a €65mn investment in Finnish Minerals Group. The funding will support the next development phase of the Sokli deposit in Savukoski. Phosphate is the main target, but rare earths also add strategic value. As a result, the Finland Sokli phosphate project is becoming more important to Europe raw materials security.

This matters because Sokli is not only a national mining project. The deposit could cover up to one fifth of EU phosphate demand if it moves into production. That gives Finland a stronger potential role in Europe’s fertilizer and strategic minerals base. Therefore, the Finland Sokli phosphate project now carries significance well beyond Finland.

The government will use the funding for a feasibility study running from 2026 to 2028. The work will include a pilot mine and a pilot concentrator. Meanwhile, the project will also assess the potential for vermiculite, niobium, and rare earth production. Consequently, the Sokli rare earth project is being framed as a multi-mineral industrial asset.

Sokli Rare Earth Project Expands the Strategic Case

The Sokli rare earth project strengthens the wider case for development because it adds strategic minerals to a phosphate-led deposit. Europe wants more secure access to raw materials that support industry, fertilizers, and advanced manufacturing. Rare earths help make Sokli more relevant to that agenda. As a result, the Sokli rare earth project could gain attention beyond traditional mining investors.

The development timeline is still early, but it is moving forward. The government said phosphate and iron concentrates production could begin between 2027 and 2029. That target will depend on study results, permitting, and pilot work. However, state support gives the project more credibility than before.

Finnish Minerals Group will also begin an environmental impact assessment in 2026. That step starts the environmental permitting process and gives the project a clearer regulatory path. Meanwhile, Sokli has already applied for a pilot operations permit, with a decision expected in summer 2026. Therefore, the Finland Sokli phosphate project is now entering a more serious execution stage.

Europe Raw Materials Security Gives Sokli Wider Relevance

Europe raw materials security is the bigger reason Sokli matters now. The EU is pushing to strengthen supply chains for critical and strategic minerals across the bloc. Finland wants Sokli to fit directly into that policy direction. As a result, the project is being positioned as both an industrial and geopolitical asset.

Sokli Oy applied in January 2026 for strategic status under the Critical Raw Materials Act. That application reflects the project’s phosphate and rare earth potential. The European Commission has not yet made a decision, but the move shows clear alignment with EU priorities. Therefore, the Finland Sokli phosphate project may become part of a broader European supply chain strategy.

The wider industrial logic is straightforward. Europe needs more domestic and regional sources of key raw materials. Projects like Sokli can reduce import dependence while creating new processing and mining capacity inside the bloc. Consequently, Finland is trying to move Sokli from geological potential to strategic industrial relevance.

The Metalnomist Commentary

Sokli matters because it combines phosphate scale with rare earth optionality at a time when Europe wants both supply security and industrial depth. The real test now is execution. If Finland can move the project through pilot work and permitting, Sokli could become one of the more important multi-mineral developments in northern Europe.

DMEGC Magnet Output Falls as Competition and Export Controls Pressure Sales

DMEGC

DMEGC magnet output fell in 2025 as tougher competition and China’s export restrictions on some rare earth permanent magnets weighed on sales. Hengdian Group DMEGC Magnetics produced 221,690t of magnetic materials during the year, down 2.5% from 2024.

DMEGC magnet output declined even as the broader Chinese magnet market benefited from stronger demand in new energy vehicles, smart appliances, data centres and consumer electronics. The company’s magnetic material sales fell by 5.9% to 218,282t, while inventories rose by 22% to 19,074t.

DMEGC magnet output weakness shows that rising end-market demand does not guarantee growth for every producer. Fiercer competition in China and overseas, combined with tighter controls on medium and heavy rare earth magnet exports, created pressure across the company’s magnet business.

China imposed export restrictions in April 2025 on permanent magnets containing seven medium and heavy rare earth elements. These included dysprosium, terbium, yttrium, lutetium, gadolinium, scandium and samarium.

The restrictions affected a sensitive part of the magnet supply chain. Dysprosium and terbium are especially important for high-performance magnets used in electric vehicles, wind turbines, robotics, aerospace systems and defence-related applications.

Magnetic Materials Lag as DMEGC Revenue Rises Elsewhere

DMEGC’s overall business still expanded in 2025 despite weaker magnet volumes. Revenue rose by 22% on the year to 22.6bn yuan, while profit increased by 1.3% to 1.85bn yuan.

The strongest revenue growth came from photovoltaic products. Sales from that segment rose by 29% to 14.3bn yuan, making solar products a major earnings driver for the group.

Revenue from magnetic materials increased by 5% to 4bn yuan, even though output and sales volumes declined. This suggests that pricing, product mix or higher-value material sales partly offset weaker physical shipments.

Lithium battery revenue also increased. Sales rose by 12% to 2.72bn yuan, while component sales climbed by 30% to 995mn yuan.

The result shows DMEGC’s advantage as a diversified materials and energy technology supplier. Weakness in one product line did not prevent group revenue growth, because photovoltaics, batteries and components supported the wider business.

Still, the magnet segment remains strategically important. DMEGC had designed magnetic materials capacity of 300,000 t/yr by the end of 2025, placing it among China’s leading magnetic material producers by sales scale.

The company’s battery and component capacity also reached 23GW and 21GW, respectively, while lithium battery output capacity stood at 8GWh. This gives DMEGC exposure to several electrification markets, including solar, batteries, motors and electronic components.

The inventory increase in magnetic materials deserves attention. Rising inventories during a year of falling sales can signal slower customer offtake, tougher competition or weaker export channels.

Export restrictions may have added to that pressure. When overseas buyers face licensing uncertainty, shipment delays or compliance risk, purchasing patterns can change even if underlying demand remains strong.

This is particularly important for rare earth permanent magnets. Buyers in automotive, robotics, wind power and electronics supply chains require stable delivery, traceability and qualification. Policy disruption can therefore affect procurement decisions quickly.

NEVs, Appliances and Data Centres Support Long-Term Magnet Demand

China’s magnet demand outlook remains positive despite DMEGC’s weaker 2025 volume performance. China produced 1.62mn t of magnetic materials in 2025, accounting for about 80% of global output.

This total included 750,000t of permanent magnetic ferrite, 600,000t of soft magnets and 270,000t of rare earth permanent magnets. The scale confirms China’s dominant role across both low-cost and high-performance magnet supply chains.

New energy vehicles remain one of the strongest demand drivers. China’s automobile output rose by 10% to 34.5mn units in 2025, while NEV production increased by 29% to 16.6mn units.

NEVs consume more magnetic materials because electric drivetrains, sensors, power steering, braking systems, pumps and comfort systems all require motors and magnetic components. As vehicles become more automated, intelligent and comfort-oriented, magnet intensity per vehicle is likely to increase.

Smart home appliances are another major demand source. China’s output of air conditioners, refrigerators and washing machines reached 266.97mn, 109.24mn and 125.17mn units, respectively, in 2025.

These appliances support demand for soft magnets and ferrite materials used in motors, compressors, power electronics and control systems. Energy efficiency standards and inverter technologies can further raise the need for higher-performance magnetic components.

Data centres are becoming a newer growth channel. Global server shipments rose by 1.9% to 16.3mn units in 2025, while AI server shipments increased by 25% to 2.04mn units.

Cooling systems in data centres require fans, motors and magnetic components. As AI infrastructure expands, heat management becomes more important, adding another source of demand for rare earth permanent magnets and soft magnetic materials.

Consumer electronics also supported the market. Global smartphone shipments rose by 2% to 1.25bn units, while personal computer shipments increased by 9.2% to 280mn units.

This broad demand base gives Chinese magnet producers a strong long-term market. However, it also attracts capacity expansion and intensifies competition. Producers must now compete not only on volume, but also on product quality, export compliance, heavy rare earth efficiency and downstream qualification.

The market is therefore entering a more selective phase. Producers with strong customer relationships, stable rare earth supply, advanced magnet technologies and diversified end-market exposure will be better positioned.

DMEGC’s 2025 results reflect that transition. Demand for magnets is rising, but policy controls, competition and inventory pressure can still weaken individual company performance.

The Metalnomist Commentary

DMEGC’s results show that China’s magnet market is growing, but not evenly. The next competitive divide will come from export-control management, high-performance magnet capability and access to reliable rare earth feedstock.

Safran Rare Earth Stockpiling Adds Resilience to Aerospace Supply Chains

Safran Aerosystems

Safran rare earth stockpiling is becoming a key part of the company’s aerospace supply chain resilience strategy. The French engine maker said it is building rare earth inventories to reduce disruption risk. It is also working on alternative supply chains as geopolitical pressure grows. As a result, Safran rare earth stockpiling now sits alongside production expansion as a core industrial priority.

This matters because raw materials remain a bottleneck even as the aerospace supply chain improves. Safran said forging and casting still constrain output. Those upstream gaps can slow engine production even when demand stays strong. Therefore, aerospace supply chain resilience now depends as much on materials planning as on assembly efficiency.

Turbine Blade Casting Investment Targets the Upstream Bottleneck

Turbine blade casting investment is Safran’s direct answer to that constraint. The company is investing in its own casting facility and expanding forging capability. Management said Safran is the only engine manufacturer with in-house forging capacity. That gives the group more control over one of the hardest parts of the supply chain.

The new turbine casting facility in La Janais, Rennes will start operating in 2027. It will produce cast blades for M88 military engines and LEAP engines. That makes the investment strategically important for both defense and commercial aerospace. Consequently, turbine blade casting investment will support higher output across multiple engine programs.

Safran rare earth stockpiling fits the same logic. The company does not want to become a rare earth producer. However, it does want stronger protection against supply interruptions in materials that have become politically sensitive. As a result, Safran rare earth stockpiling is a defensive industrial move rather than a resource play.

LEAP Engine Deliveries Rise as Aftermarket Demand Stays Strong

LEAP engine deliveries are also moving higher, which explains why Safran is investing so aggressively upstream. The company delivered 1,802 LEAP engines in 2025, up 28pc from 2024. It expects another 15pc increase in 2026 to around 2,072 units. Therefore, supply chain pressure will likely stay intense as Airbus and Boeing push for higher build rates.

Safran is aiming for around 2,600 LEAP deliveries a year by 2028. That target will require more stable access to forgings, castings, and sensitive raw materials. Meanwhile, the aftermarket remains strong enough to add more pressure on the system. Spare parts revenue is expected to rise about 15pc in 2026, while services revenue should increase around 20pc.

The aftermarket strength comes from delayed aircraft retirements and more shop visits for both CFM56 and LEAP engines. That means Safran must support both new engine growth and a busy installed fleet at the same time. Consequently, aerospace supply chain resilience is no longer optional. It is essential for maintaining production and service performance together.

The Metalnomist Commentary

Safran’s update shows that aerospace growth is now an upstream materials story as much as a delivery story. Rare earth stockpiling and casting investment are both signs of the same reality. Engine makers can no longer rely on fragile external supply chains if they want to meet ambitious aircraft and aftermarket targets.

China rare earth quotas 2025 allocated, volumes undisclosed

China renewable energy

China rare earth quotas 2025 have been allocated, but volumes remain undisclosed. The first batch arrives under new rare earth rules. Meanwhile, China rare earth quotas 2025 now include separation and smelting from imported concentrates. Therefore, market participants must plan without official tonnages.

What the quiet rollout signals for supply

Beijing’s opaque release tightens near-term visibility for magnet and catalyst supply chains. Last year’s yardsticks were 270,000t for mining and 254,000t for separation. However, this year’s framework adds imported concentrate output to quota coverage. As a result, refiners may shift blends and booking patterns.

Control and compliance reshape the landscape

Northern Rare Earth and China Rare Earth Group again anchor domestic allocations. Regulators set quotas after “comprehensive” market and operational reviews. The 2024 regulation update formalized that approach and tightened compliance. In turn, the system aims to curb illegal output and smooth pricing volatility. China rare earth quotas 2025 could still swing NdPr and heavy RE flows.

Global buyers should expect cautious offer behavior until volumes surface. Therefore, inventories, tender timing, and index linkage deserve fresh scrutiny. EV, wind, and electronics demand keeps pressure on NdPr, Dy, and Tb units. Pricing risk will track any deviation from last year’s baseline.

The Metalnomist Commentary

China’s undisclosed tonnages keep the market guessing, but the broader net over imported concentrates matters more. Watch offer cadence from Baotou and Ganzhou, and any hint of quarterly quota top-ups. If policy prioritizes stability, volatility should compress after initial price jitters.

Serra Verde Secures $150 Million for Rare Earth Expansion in Brazil

Serra Verde

Brazilian mining company Serra Verde has been awarded $150 million in funding to bolster its efforts in developing sustainable rare earth element (REE) production. The investment, led by Denham Capital, the US' Energy and Minerals Group, and the UK's Vision Blue Resources, is set to enhance operational capacity and drive long-term expansion of rare earth supply chains.

This funding initiative aligns with the Minerals Security Partnership (MSP) project, a global effort involving 14 countries and the European Union. The MSP focuses on accelerating the development of critical energy mineral supply chains to support the global energy transition.

Pioneering Rare Earth Production Outside Asia

Located in the central-western state of Goias, Serra Verde commenced commercial production earlier this year. It is recognized as the first large-scale rare earth operation outside Asia, leveraging Brazil's third-largest global reserves, estimated at 21 million tons according to the US Geological Survey.

The Serra Verde deposit contains a high proportion of both heavy and light rare earth elements, including neodymium, praseodymium, terbium, and dysprosium. These critical minerals are essential for manufacturing clean energy technologies such as wind turbines, electric vehicles, and high-performance magnets.

A Boost for Sustainable Rare Earths Supply

As demand for rare earths continues to grow globally, this investment positions Serra Verde as a key player in diversifying rare earth supply chains, reducing reliance on Asia-dominated markets. The focus on sustainable production practices also aligns with rising environmental and governance standards in the mining industry.

With Serra Verde’s expanded operations, Brazil solidifies its position as a critical rare earth supplier, contributing to global energy and technological advancements.

Atlas Lithium rare earths in Brazil reshape its critical minerals story

Atlas Lithium

Atlas Lithium rare earths in Brazil mark a major strategic shift for the US-listed lithium developer. The company has identified rare earth deposits at its Ipora and Alto do Paranaiba projects, adding ionic clay and sedimentary rock resources to its portfolio. This Atlas Lithium rare earths in Brazil announcement broadens its exposure beyond brine and hard-rock lithium into magnetic and heavy rare earths.

The Ipora project in Goias has emerged as an important ionic clay discovery. Initial drilling shows 2,071ppm total rare earth oxides (Treo), including 775ppm magnetic rare earth oxides, positioning Atlas Lithium rare earths in Brazil within a competitive grade range. As a result, the project stands out for its heavy rare earth oxide recovery rate of 55pc and yttrium recovery at 63pc, both attractive metrics for downstream magnet and electronics supply chains.

Alto do Paranaiba links rare earths with titanium credits

Alto do Paranaiba in Minas Gerais adds a very different style of mineralisation. The project hosts near-surface Treo grades up to 28,870ppm alongside 23.3pc titanium dioxide, pointing to potential by-product titanium value. Therefore Atlas Lithium rare earths in Brazil now span both ionic clays and high-grade sedimentary units, which can diversify processing options and revenue streams.

However, the company still needs to confirm continuity, metallurgy and scalable mine plans at Alto do Paranaiba. Near-surface grades offer potential for lower strip ratios and faster development, but sediment-hosted rare earths require careful flowsheet design. Investors will focus on how Atlas prioritises drilling, pilot testing and sequencing between Ipora and Alto do Paranaiba.

Building a multi-commodity critical minerals platform

Atlas Critical Minerals, the company’s Brazilian subsidiary, now controls more than 218,000 hectares of mineral rights across rare earths, titanium, graphite and uranium. This scale provides optionality for partnerships and off-take, especially as Western buyers seek non-Chinese rare earth sources. Meanwhile, combining Atlas Lithium rare earths in Brazil with its lithium portfolio could position the group as an integrated critical minerals developer rather than a single-commodity play.

As a result, Atlas can align its narrative with supply-chain diversification, energy transition and defence applications. But execution risk remains high, given early-stage status, capital needs and complex permitting in Brazil. Clear timelines, resource updates and metallurgical results will determine whether these discoveries translate into bankable projects.

The Metalnomist Commentary

Atlas is moving quickly to rebrand itself from a pure lithium story into a broader critical minerals platform. The rare earth discoveries are promising, particularly the ionic clay potential at Ipora, but still sit firmly in the exploration risk bucket. For now, these finds strengthen strategic optionality and headline appeal more than near-term cash flow.