Rainbow Rare Earths Pilot Plant Reaches Commercial-Quality REE Milestone

Rainbow Rare Earths

Rainbow Rare Earths pilot plant has reached a meaningful technical milestone in South Africa. The company said it is now producing commercial-quality high-grade mixed rare earth hydroxide in Johannesburg. This result marks a stronger step toward future downstream rare earth production. As a result, Rainbow Rare Earths pilot plant is becoming more relevant to the non-Chinese rare earth supply story.

The product quality is especially important. Rainbow said it produced about 2kg of mixed rare earth product at roughly 55pc total rare earth oxide. That grade is higher than standard Chinese mixed rare earth carbonate at 42-44pc TREO. Therefore, Rainbow Rare Earths pilot plant is not only producing material. It is producing higher-grade intermediate material with stronger commercial meaning.

This milestone also matters because rare earth projects often struggle to prove processing quality at pilot scale. A higher-grade product can improve confidence in downstream separation potential and project economics. Consequently, this announcement helps move the Phalaborwa rare earth project closer to a more credible development path.

Commercial-Quality Rare Earth Hydroxide Strengthens Project Confidence

Commercial-quality rare earth hydroxide is an important de-risking point for any rare earth development. Rainbow said the new hydroxide product will be used to produce NdPr oxide and an SEG+ stream containing medium and heavy rare earths at more than 99.5pc purity. That means the company is targeting valuable magnet and specialty rare earth outputs. As a result, the project is advancing beyond simple concentrate production.

The processing route also builds on earlier pilot work. Rainbow commissioned the Johannesburg plant in 2023 and produced its first mixed rare earth sulphate in September that year. The latest result shows a further step in process development and product upgrading. Therefore, commercial-quality rare earth hydroxide now gives the company a stronger technical narrative.

This matters for the wider rare earth market. Buyers increasingly want projects that can demonstrate not only resource scale, but also processing performance. A pilot plant that can produce higher-grade mixed rare earth product carries more strategic value than a project with geology alone. Meanwhile, it improves confidence in future downstream partnerships and financing.

Phalaborwa Rare Earth Project Gains a More Credible Development Platform

Phalaborwa rare earth project is now gaining a stronger base for future development. The project holds a resource of 30.4mn t grading 0.44pc TREO, with 29pc made up of neodymium and praseodymium. That gives the deposit exposure to the most commercially important magnet rare earth elements. Consequently, the project has clearer strategic relevance in the current market.

The company described the increased production rate as an important de-risking event. That comment matters because pilot-scale validation is often where investors begin separating credible projects from weaker ones. Rainbow is now showing not just resource potential, but processing progress tied to saleable product quality. Therefore, the Phalaborwa rare earth project may gain stronger market attention if this momentum continues.

The broader implication is clear. Rare earth supply diversification depends on more than finding deposits outside China. It requires practical processing routes that can deliver high-purity products for real end markets. As a result, Rainbow Rare Earths pilot plant is becoming more important as a processing proof point than as a simple pilot announcement.

The Metalnomist Commentary

This update matters because rare earth markets reward processing credibility more than resource size alone. Rainbow is starting to show that Phalaborwa may have both. If it can keep improving purity, scale, and consistency, this project could become a more serious non-Chinese rare earth contender.

Pensana VAC rare earth offtake agreement anchors Western mine-to-magnet strategy

VAC

Pensana VAC rare earth offtake agreement marks a pivotal step in building a Western rare earths supply chain. Pensana will supply mixed rare earth carbonate from its Longonjo project in Angola to Vacuumschmelze (VAC) under a five-year contract. This Pensana VAC rare earth offtake agreement underpins new US magnet capacity and links African upstream resources with Western downstream processing.

Longonjo MREC offtake underpins eVAC’s US magnet build-out

Pensana VAC rare earth offtake agreement will initially channel Longonjo’s MREC into VAC’s growing magnet footprint. Pensana plans to start production at Longonjo in late 2026, targeting 20,000 t/yr of mixed rare earth carbonate. The company ultimately aims to double output to 40,000 t/yr in a second phase.

Meanwhile, VAC is scaling its eVAC permanent magnet plant in Sumter, South Carolina. The Pensana VAC rare earth offtake agreement is designed to support 2,000 t/yr of NdFeB magnet output, rising to 12,000 t/yr by 2029. By locking in MREC feedstock, eVAC can plan long-term capacity and qualify Western supply for automotive, wind and defense customers.

VAC is also racing to develop heavy rare earth-free magnet alloys to reduce dependence on China. Its latest NdFeB alloy eliminates terbium and dysprosium, which are currently produced at scale almost exclusively in China. As a result, the Pensana VAC rare earth offtake agreement complements alloy innovation by anchoring a diversified feedstock base.

US-backed rare earths supply chain gains momentum

The Pensana VAC rare earth offtake agreement is deeply intertwined with US critical minerals policy. eVAC’s executive chairman explicitly linked the deal to US government funding and backing from the US International Development Finance Corporation. Washington sees mine-to-magnet projects as central to national and economic security.

Developing a Western rare earths supply chain has become a strategic priority for the US and its allies. Recent US-Australia critical minerals agreements will co-invest $1bn each in priority projects and accelerate permitting. Against this backdrop, the Pensana VAC rare earth offtake agreement stands out as a commercially concrete move, not just a policy ambition.

Pensana has also reoriented its downstream strategy to align with this policy shift. The company scrapped plans for a UK refinery at Saltend near Hull to focus on US-linked development. In parallel, Pensana signed another offtake for up to 20,000 t/yr of MREC with US refiner ReElement Technologies, further embedding Longonjo into North American supply chains.

The Metalnomist Commentary

The Pensana VAC rare earth offtake agreement shows how quickly the mine-to-magnet landscape is shifting toward US-aligned supply chains. For magnet makers and alloy developers, secure MREC supply from Longonjo reduces China risk and supports long-term contracts with OEMs. The next test will be whether financing, permitting and midstream processing capacity can scale fast enough to match ambitious magnet output targets.

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.

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.

Frontier Rare Earths Secures Funding and Offtake Support for Zandkopsdrift

Frontier Rare Earths

Frontier Rare Earths Zandkopsdrift project has moved into a more serious development phase. The company secured a $20mn investment from South Africa’s Industrial Development Corporation. It also signed a strategic technology and offtake agreement with Carester. As a result, Frontier Rare Earths Zandkopsdrift project now has stronger financial and commercial backing.

This matters because the project targets high-value magnet rare earths that remain strategically important for global supply chains. Zandkopsdrift is expected to produce NdPr oxide, dysprosium oxide, and terbium oxide over its first 25 years. These materials are critical for permanent magnets and advanced industrial applications. Therefore, Frontier Rare Earths Zandkopsdrift project is gaining relevance beyond South Africa alone.

The project also stands out because it includes battery-grade manganese as a by-product. Frontier said manganese revenues could cover as much as 90pc of rare earth production costs. That gives the project a potentially stronger cost structure than many stand-alone rare earth developments. Consequently, battery-grade manganese could become a major economic advantage.

Funding and Offtake Agreements Strengthen Project Credibility

The new funding package gives Frontier more room to advance the project with greater confidence. The IDC investment will support the definitive feasibility study and corporate development work. That means the company can now move forward with a more credible development path. As a result, financing risk has become easier to manage in the near term.

The offtake structure also adds strategic depth. Carester signed a seven-year agreement for mixed heavy rare earth carbonate from the project. Frontier will also use Carester’s solvent extraction technology to produce high-purity NdPr oxide and mixed heavy rare earth carbonate. Therefore, the project is gaining both technical support and a downstream commercial route.

The IDC’s involvement adds another layer of policy relevance. The agency also holds an option for offtake of up to 10pc of production for downstream processing in South Africa. That aligns the project with national industrialisation goals. Meanwhile, it strengthens the domestic policy case for project support.

South Africa Rare Earth Project Gains International Strategic Weight

This South Africa rare earth project is now attracting international strategic recognition. The European Union has designated Zandkopsdrift as a Strategic Project under its Critical Raw Materials Act. That status increases the project’s visibility in western supply diversification efforts. As a result, Frontier Rare Earths Zandkopsdrift project now sits within a broader geopolitical materials story.

The production timeline also gives the market a clear target. Frontier aims to begin production in 2030. The company said the project is fully permitted and that infrastructure planning is complete. Therefore, the focus now shifts from concept validation toward execution and financing progress.

The combination of magnet rare earths and battery-grade manganese gives the project a differentiated profile. Many rare earth projects struggle with cost intensity and processing complexity. However, Zandkopsdrift may benefit from a more balanced revenue model. Consequently, this South Africa rare earth project could become more competitive than many junior peers.

The Metalnomist Commentary

This announcement matters because it combines funding, technology, and offtake in one step. That is exactly what many rare earth projects fail to secure early enough. If Frontier executes well, Zandkopsdrift could become one of the more credible new non-Chinese magnet rare earth projects in the next supply cycle.

Lynas Secures Malaysian Rare Earth Feedstock for Processing Plant

Lynas Rare Earths

Lynas Rare Earths has signed a groundbreaking Malaysian rare earth feedstock agreement with Kelantan state. The Australian producer partnered with Menteri Besar investment agency for ionic clay supplies. This strategic deal ensures Malaysian rare earth feedstock for Lynas's local processing operations.

Heavy Rare Earths Supply from Kelantan Deposits

The agreement covers mixed rare earth carbonates from Malaysia's ionic clay deposits. These deposits contain high concentrations of valuable heavy rare earths. Meanwhile, Lynas became the first non-Chinese separated heavy rare earths producer recently. The company now produces dysprosium and will add terbium production in June.

Both parties will collaborate on Malaysia's broader rare earth sector development. However, specific supply volumes remain undisclosed pending final negotiations. The feedstock delivery begins once Kelantan mining operations commence. Currently, Lynas sources carbonate from its Australian Mount Weld mine exclusively.

Strategic Shift in Southeast Asian Rare Earth Processing

This partnership transforms Malaysia's rare earth industry positioning significantly. Malaysia considered export bans to boost domestic processing capabilities last year. Therefore, this deal aligns with national downstream development objectives perfectly. Lynas gains critical supply chain diversification beyond Australian sources.

The Malaysian rare earth feedstock agreement strengthens regional processing independence from China. Furthermore, ionic clay deposits offer superior heavy rare earth concentrations. As a result, Lynas can expand specialty rare earth production capacity. This development positions Malaysia as a global rare earth processing hub.

The Metalnomist Commentary

Lynas's Malaysian feedstock agreement represents a masterful supply chain strategy combining local sourcing with established processing infrastructure. This partnership accelerates Malaysia's rare earth ambitions while giving Lynas competitive access to high-value heavy rare earth deposits. The deal exemplifies successful resource nationalism that benefits both foreign investors and host countries.

Aclara REE Separation Pilot Plant Advances US Heavy Rare Earth Supply Chain

Aclara REE

Aclara REE separation pilot plant commissioning in Virginia marks an important step toward building a non-China rare earth processing route for heavy and light rare earth oxides. Chilean rare earths producer Aclara Resources has opened the pilot facility in Blacksburg as part of its strategy to create a vertically integrated rare earth supply chain.

The plant will process mixed rare earth carbonates sourced from Aclara’s ionic clay deposits in Brazil and Chile. This gives the company a route to connect South American rare earth resources with US-based separation technology and future downstream supply.

The Aclara REE separation pilot plant is designed to produce separated dysprosium, terbium, and neodymium-praseodymium. First light rare earth oxide output is scheduled for May 2026, while heavy rare earth oxide output is expected in August 2026.

Virginia Pilot Plant Targets Critical Magnet Materials

The Virginia facility matters because rare earth separation remains one of the most difficult and strategically sensitive parts of the supply chain. Mining or producing mixed carbonate is only the first step; the real value is created when individual rare earth oxides are separated to commercial specification.

Dysprosium and terbium are especially important because they are used to improve high-performance permanent magnets. These magnets support electric vehicles, wind turbines, robotics, defense systems, and advanced industrial equipment.

Neodymium-praseodymium is also central to magnet production. By targeting both light and heavy rare earth oxides, Aclara is positioning the pilot plant as a technical bridge between upstream ionic clay resources and downstream magnet material demand.

Louisiana Facility Could Scale Aclara’s US Processing Strategy

The Aclara REE separation pilot plant will support engineering, ramp-up, and process optimization for the company’s planned commercial separation facility in Louisiana. That project requires capital investment of $277 million and is scheduled to begin operations by mid-2028.

The collaboration with Virginia Tech and Argonne National Laboratory strengthens the technical base behind the project. It also aligns Aclara with US efforts to build domestic rare earth processing capacity for materials that remain heavily exposed to China-controlled supply chains.

For the market, the key question is whether Aclara can move from pilot output to reliable commercial-scale separation. If successful, the Louisiana facility could become a meaningful new processing node for dysprosium, terbium, and neodymium-praseodymium outside Asia.

The Metalnomist Commentary

Aclara’s Virginia pilot plant shows that rare earth supply security depends on separation technology, not only resource ownership. The company’s model also highlights a practical route for linking Latin American deposits with US processing capacity and strategic magnet demand.

Lynas Reports Decline in Rare Earth Production for FY2023-24

Lynas

Australian rare earth producer Lynas has reported a significant drop in rare earth oxide output and revenue for the fiscal year ending June 2024. The decline was attributed to lower rare earth prices and a six-week shutdown at its Malaysian processing facility during November and December 2023.

Production Decreases Amid Plant Shutdown

Lynas produced 10,908 tonnes of rare earth oxides (REO) in FY2023-24, representing a 35% decline from 16,780 tonnes the previous year. The output of praseodymium-neodymium oxide (PrNd), a key material used in magnets, also dropped by 8% to 5,655 tonnes. The shutdown, aimed at expanding the facility's PrNd separation capacity, contributed to reduced production, with total REO output falling to 1,566 tonnes during the October-December quarter, down from 4,457 tonnes in the same period the previous year.

Revenue and Profit Drop

Lynas’ sales volumes also took a hit, with 12,158 tonnes of REO sold in FY2023-24, a decrease of 24% from the prior year. Revenue fell by 37% to A$463.3 million, while net profit plummeted by 72% to A$84.5 million. The drop in average sales prices, which fell by 17% to A$38.10 per kilogram, played a significant role in the financial decline.

Despite these challenges, Lynas managed to reduce total costs by 17%, focusing on improving efficiency across its rare earth operations. The company invested A$579.3 million in capital and mine development projects during the fiscal year, including the expansion of the Mount Weld project and the construction of the Kalgoorlie rare earth processing facility.

Lynas continues to expand its Mount Weld rare earth project to feed both its Malaysian processing plant and the new Kalgoorlie facility. The Mount Weld project has seen significant growth, with its total rare earth oxide (TREO) resources increasing by 46% since 2018. The project’s ore reserves also rose by 63% to 32 million tonnes in 2024.

The Kalgoorlie facility began producing mixed rare earth carbonate (MREC) in the April-June 2024 quarter, and the first shipment has already been dispatched to the Malaysian plant. The continued expansion of both facilities is expected to meet rising market demand for rare earth materials.

Rare earth polishing powder plant: Shenghe expands high-performance capacity in Sichuan

Shenghe

A new rare earth polishing powder plant is moving forward in Leshan, Sichuan. Leshan Shenghe is building the rare earth polishing powder plant to capture fast-rising optical glass demand. As a result, the project targets higher-value rare earth processing, not just raw materials.

The company plans 15,000 t/yr of high-performance rare earth polishing powder in the first phase. It will invest 468mn yuan ($67.01mn) to complete construction and commissioning by December 2026. Meanwhile, the plant will focus on cerium-containing polishing powder used in precision finishing.

Optical glass demand drives a push into higher-value rare earth products

Optical glass growth is pulling more high-consistency polishing materials into supply chains. Semiconductor tools and panel displays also raise quality requirements for polishing powders. Therefore, producers now compete on particle control, purity, and process know-how.

Global polishing powder consumption stands near 60,000 t/yr today. China accounts for about 50,000 t/yr, or roughly 83pc of the total. However, Japan, South Korea, and the US still lead high-performance grades and core technology.

Phase-two feedstock strategy supports import substitution and stability

Shenghe designed a second phase to secure inputs for the first phase. The plan adds 30,000 t/yr of rare earth carbonate capacity after the first phase starts. Therefore, the second phase aims to stabilize feedstocks and improve cost control.

The company expects to finish second-phase construction by June 2028. It also says the rare earth polishing powder plant can reduce reliance on imported high-end material. Meanwhile, the project signals a broader shift toward specialized rare earth downstream products.

The Metalnomist Commentary

This buildout shows China is targeting the “technology layer” of rare earth value chains. However, equipment qualification and customer validation will decide real pricing power. The leaders will lock in repeatable quality, not just nameplate tonnage.

Energy Fuels Expands Rare Earth Production, Targets Key Elements for High-Tech Applications

Energy Fuels, a leading U.S. producer of uranium and rare earth elements (REEs), is set to significantly increase its production of neodymium-praseodymium (NdPr) in the third quarter of 2024. This follows the successful commissioning of the first phase of its commercial-scale rare earth separation circuit at the White Mesa uranium and vanadium mill in Utah, which began operations in the April-June quarter.

The company produced approximately 12 metric tons of separated NdPr during the second quarter, which remains in inventory, alongside an additional 9 metric tons of high-purity, partially separated mixed rare earth carbonate. Energy Fuels anticipates completing the processing of its remaining monazite stock early in the third quarter, leading to a total output of 25-35 metric tons of separated NdPr and 10-20 metric tons of a heavy samarium (Sm+) mixed rare earth carbonate.

Looking ahead, the company is not only focused on NdPr but is also fine-tuning its plans to produce dysprosium (Dy) and terbium (Tb), two other critical rare earth elements, as part of the mill's Phase 2 expansion. This phase aims to increase the facility’s capacity to process 40,000-60,000 metric tons per year of monazite, significantly boosting output to 4,000-6,000 metric tons per year of NdPr, along with 150-225 metric tons per year of Dy and 50-75 metric tons per year of Tb.

The ongoing expansion is supported by strategic acquisitions and partnerships aimed at securing a stable supply of monazite, a key feedstock for rare earth oxide production. Energy Fuels has acquired Perth-based Base Resources, which is developing the Toliara project in Madagascar, and owns the Bahia project in Brazil, both of which are expected to supply significant volumes of monazite to White Mesa. Additionally, the company is developing the Donald project in Australia through a joint venture with Astron.

These efforts are part of Energy Fuels’ broader strategy to meet the growing demand for rare earth elements, which are essential for high-tech applications, including electric vehicles, renewable energy, and advanced defense systems.

Tronox rare earths project wins $600mn US-Australia export finance backing

Tronox RE project

The Tronox rare earths project has secured coordinated, conditional interest from two export credit agencies. The support totals up to $600mn from Export Finance Australia and Export-Import Bank of the United States. Therefore, Tronox now has a clearer funding pathway for rare earth processing in Western Australia.

The Tronox rare earths project targets a proposed facility in Western Australia. Tronox has finished a pre-feasibility study and will start a definitive feasibility study next. The plan centers on producing mixed rare earth carbonate with light and heavy rare earths. Meanwhile, the company will engage downstream customers to shape a bankable project structure.

Export credit agencies push a China-diversification strategy

Export credit agencies are using capital to reshape critical minerals trade flows. The US and Australia are aligning financing to diversify rare earth supply chains away from China. As a result, the agencies are signaling long-horizon support for non-Chinese processing capacity.

The coordination follows the United States–Australia framework announced in October. That framework aims to secure mining and processing supply for critical minerals and rare earths. Therefore, the Tronox rare earths project fits a broader policy push for trusted-partner supply.

Tronox can upgrade mineral sands by processing monazite in-house

Tronox already runs an integrated mineral sands footprint. Tronox produces titanium dioxide pigment, high-purity titanium chemicals, and zircon. It also mines mineral sands and produces titanium feedstocks and pig iron.

Monazite is the key rare earth lever inside that value chain. Monazite contains rare earths and can sit inside tailings streams. However, Tronox currently sells tailings materials that contain rare earth elements. A cracking and leaching facility would let Tronox refine that material in-house and lift value capture.

The strategic prize is supply chain optionality. Tronox aims to become a rare earth supplier supporting US and Australian critical mineral strategies. Therefore, the Tronox rare earths project could convert a byproduct stream into a strategic rare earth supply chain.

The Metalnomist Commentary

Export credit support reduces financing risk, but it does not guarantee permits or offtake. Therefore, Tronox must lock long-term customers and prove operating costs quickly. Meanwhile, cracking and leaching execution will decide whether the project stays competitive.

Lynas Opens Australia’s First Fully Commissioned Rare Earths Facility in Kalgoorlie

Lynas Rare Earths

Australian rare earths producer Lynas Rare Earths has officially inaugurated the nation’s first fully commissioned rare earths processing plant in Kalgoorlie. This milestone marks a significant step forward in bolstering Australia’s rare earths production capabilities.

The A$800 million ($530 million) facility aims to process mixed rare earth carbonate sufficient to produce 9,000 t/yr of neodymium-praseodymium (NdPr), a vital material for rare earth magnets used in electric vehicles (EVs) and other advanced technologies. Currently, the processed rare earth carbonate is shipped to Lynas' Malaysian facility and is also expected to supply its planned facility in the United States.

Boosting NdPr Output and Expanding Operations

In Q3 2024, Lynas reported a production of 1,677t of NdPr oxide at its Malaysian plant, up from 1,504t in Q2 and 1,526t in Q3 2023. The Kalgoorlie facility is anticipated to further increase Lynas’ NdPr supply to meet growing global demand.

The Malaysian facility, meanwhile, is undergoing a major expansion. It is projected to commence production of dysprosium and terbium—critical materials for high-performance permanent magnets—by 2025. Additionally, the site’s reconfigured circuits will have the capability to separate up to 1,500 t/yr of mixed heavy rare earth compounds.

Global Implications of Lynas’ Expansion

As a leading producer of rare earths outside China, Lynas plays a key role in diversifying global supply chains for critical minerals. The Kalgoorlie facility enhances Australia's position as a reliable source of rare earth materials while supporting the development of advanced technologies such as EVs and renewable energy solutions.

Defense Metals Secures $250mn Funding Interest for Wicheeda Rare Earths Project

Defense Metals

Strategic Financing Boost for Canadian Rare Earth Development

Defense Metals has received a Letter of Interest from Export Development Canada (EDC) for up to $250mn in debt financing to advance its Wicheeda Rare Earth Element (REE) Project. The funding is contingent upon the completion of due diligence, marking a significant milestone for one of Canada’s most promising rare earth ventures.

Located in British Columbia, the Wicheeda REE Project covers 29,158 acres and is expected to operate for 15 years once in production. According to the 2025 pre-feasibility study, the project could yield an average of 31,900 tonnes per year of total rare earth oxide (TREO) in concentrate, translating to about 5,200 tonnes of TREO in mixed rare earth carbonate (MREC). This positions Wicheeda as a critical contributor to North America’s rare earth supply chain.

The project’s estimated capital cost stands at $2bn, with operating costs of $37.42 per kilogram of praseodymium-neodymium oxide in MREC. If developed, Wicheeda could provide a secure and sustainable supply of high-value REEs vital for electric vehicles, renewable energy systems, and defense applications.

Strengthening North America’s Rare Earth Supply Chain

The EDC’s potential financing underscores Canada’s commitment to building domestic capabilities in critical minerals. By supporting large-scale projects like Wicheeda, Canada can reduce reliance on overseas REE sources and reinforce supply security for industries vulnerable to geopolitical disruptions. Defense Metals’ progress also reflects a broader trend of aligning mining investment with strategic industrial policy in the face of growing global demand.

The Metalnomist Commentary

The $250mn funding interest from EDC could prove pivotal in moving Wicheeda toward production. With capital-intensive projects like this, early financial backing is essential to secure investor confidence and advance permitting. If realized, Wicheeda will strengthen North America’s independence in rare earth sourcing while tapping into rapidly expanding clean energy and technology markets.

Viridion Considers US Rare Earth Refinery to Boost Supply Chains

Viridion

Viridion Evaluates Refining Expansion in US and Brazil

Brazilian rare earth producer Viridion is weighing the construction of a rare earth refinery in the United States alongside a magnet refining and recycling facility in Brazil. Viridion is a joint venture between Australia’s Viridis Mining and Minerals and Ionic Rare Earths (IonicRE). The initiative follows recent funding support under Brazil’s $1.4bn Strategic Minerals Transformation Initiative, led by the National Bank for Economic and Social Development.

An internal study suggested that a proposed US refinery in Tennessee could produce 4,000 t/yr of separated rare earth oxides (REOs). The project would leverage proximity to potential partners while securing downstream processing capacity for non-Chinese supply chains.

US Refinery to Process Feed from Uganda’s Makuutu Project

The proposed Tennessee facility would process mixed rare earth carbonate (MREC) from IonicRE’s 60pc-owned Makuutu Rare Earth Project in Uganda. The Makuutu project stands out for its 45pc medium and heavy rare earths content, one of the highest reported concentrations globally. These elements, including dysprosium and terbium, are critical for permanent magnets in clean energy and defense industries.

Meanwhile, Viridion continues to advance recycling initiatives in Brazil. In May, the company delivered its first batch of recycled magnet REOs to local partners. Discussions are ongoing for pilot plant sites that could scale into full refineries and recycling hubs.

The Metalnomist Commentary

Viridion’s dual focus on US refining and Brazilian recycling underscores the geopolitical urgency of rare earth diversification. If realized, the Tennessee facility could reduce Western reliance on Chinese separation capacity, while Brazil positions itself as a recycling hub. Success will depend on financing, permitting, and securing offtake agreements in both markets.

Victory Metals Produces Gallium at North Stanmore Rare Earth Project

Victory Metals

Australia Sees First Gallium Output from Rare Earth Carbonates

Victory Metals has produced gallium-bearing rare earth carbonates at its North Stanmore project in Western Australia. This marks the first reported gallium production by an Australian rare earth company, based on 57 mineral sample locations. The resulting carbonate samples contain 38 g/t of gallium, offering new potential in the country's critical minerals strategy. Victory’s efforts underscore Australia's growing role in supplying strategic materials for high-tech and green energy sectors.

Project Remains in Scoping Stage with Broader Rare Earth Goals

Despite this milestone, North Stanmore remains in the pre-production phase, according to a scoping study released on March 12. The report outlines plans to produce over 59,000t of rare earth carbonates and more than 3,000t of scandium and hafnium oxides.

Gallium recovery is not yet included in operational scenarios but could be reconsidered in later phases of development. Meanwhile, other Australian firms such as Axel REE are also exploring gallium production, signaling industry-wide momentum.

The Metalnomist Commentary

Victory’s gallium output marks a pivotal development in Australia’s push for critical mineral independence. With global gallium markets dominated by China, even small domestic breakthroughs could have significant geopolitical impact. The North Stanmore project may emerge as a model for diversified rare earth production in the Western Hemisphere.

ReElement Technologies Eyes $150mn Boost for US Rare Earth Refinery

ReElement Technologies

Expanding US Rare Earth Refining Capacity

ReElement Technologies has secured a letter of interest from the US Export-Import Bank for up to $150mn in funding to expand its rare earth element (REE) and critical mineral refinery in Indiana. The investment would support the Marion Advanced Technology Center, enhancing its ability to produce 99.5% purity rare earth oxides and compounds, including neodymium, dysprosium, terbium, samarium, yttrium, and gadolinium. This expansion aims to strengthen the United States’ domestic capacity to refine critical materials essential for clean energy, defense, and advanced manufacturing sectors.

The Marion facility, acquired in 2023, spans 50,000m² and is being transformed into a commercial-scale refining hub capable of producing not only rare earth oxides but also lithium carbonate, lithium hydroxide, and transition metals. This scale positions ReElement as a potential leader in US-based REE processing.

Competing with Chinese Production Costs

ReElement also operates a 700m² Commercial Validation Facility in Noblesville, Indiana, which produces REEs and battery-critical elements. The company claims to be one of the few — possibly the only — US commercial entity capable of producing these high-purity materials at costs competitive with, or lower than, Chinese production. This capability could significantly reduce the nation’s dependency on Chinese supply chains, a key strategic priority amid rising geopolitical tensions and growing demand for REEs in electric vehicles, wind turbines, and military technologies.

Industry analysts note that achieving cost parity with Chinese producers has historically been a major barrier for US refiners. If ReElement can scale production while maintaining cost efficiency, it could reshape the competitive landscape in the global REE market.

Strategic Implications for US Supply Chain Security

The potential $150mn financing aligns with Washington’s push to localize critical mineral supply chains. Rare earth elements are essential for energy transition technologies and high-performance defense systems, yet the US currently relies heavily on imports for refined materials. By expanding domestic refining capacity, ReElement could play a pivotal role in mitigating supply risks, fostering industrial resilience, and supporting US manufacturing competitiveness.

Furthermore, the partnership with the US Export-Import Bank underscores growing federal willingness to financially back strategic resource projects. This model of public-private collaboration may serve as a blueprint for accelerating critical mineral infrastructure nationwide.

The Metalnomist Commentary

ReElement’s potential funding deal is a milestone in US rare earth refining ambitions. By scaling production to commercial levels while competing with China on cost, the company could become a cornerstone of America’s critical mineral strategy. The challenge will be ensuring that operational efficiency and market demand grow in lockstep with expanded capacity.

Pensana Angola Refinery Construction Begins at $325 Million Longonjo Project

Pensana Angola

Pensana Angola refinery construction commenced at the Longonjo rare earth project, marking a significant milestone in diversifying global critical minerals supply chains. The UK-based company's Pensana Angola refinery represents a $325 million investment targeting 20,000 tonnes annually of mixed rare earth carbonate (MREC) production, directly challenging China's dominance in rare earth processing and magnet material supply chains.

Comprehensive Infrastructure Development Supports Integrated Operations

Pensana Angola refinery infrastructure encompasses extensive facilities including open pit mining, concentrator and recovery plants, tailings storage, and bulk power supply systems. The integrated operation will extract, concentrate, calcine, and chemically refine free dig material to produce MREC for export through Lobito port. Construction and commissioning timelines span approximately 22 months with potential second phase expansion to 40,000 tonnes annually.

Meanwhile, the expanded capacity would represent roughly 5% of global production suitable for permanent magnet conversion in electric vehicles and offshore wind applications. Industry projections indicate neodymium-praseodymium (NdPr) metal demand growth of 7.5% compound annual rate over the next decade. This growth trajectory reflects accelerating clean energy transitions and automotive electrification requiring reliable rare earth supplies outside Chinese control.

Strategic Financing Structure Ensures Project Viability

However, Pensana secured comprehensive financing totaling $268 million through diversified international and regional partners. The Africa Finance Corporation approved $81.2 million within a $160 million syndicated loan facility alongside South Africa's Absa Bank in March. Angola's sovereign wealth fund FSDEA provided $25 million construction investment plus previous $15 million bridging loans and $38 million equity/convertible loan arrangements.

Therefore, the project operates through Pensana's 84% subsidiary Ozango Minerais, with FSDEA holding 10% ownership and other investors comprising the remainder. This ownership structure demonstrates successful public-private partnership models for critical minerals development in Africa. The sovereign wealth fund participation ensures Angolan government alignment with project success and local economic benefits.

Downstream Integration Targets European Market Penetration

Furthermore, Pensana established preliminary agreements for 100% of stage 1 production while engaging major automakers including JLR, Volvo, Mercedes, Ford, BMW, Tesla, and Stellantis for magnet supply chain partnerships. The company plans integrated downstream operations with UK-based separation plants at Saltend Chemicals Park producing 12,500 tonnes rare earth oxide and 4,400 tonnes NdPr oxide annually.

As a result, the proposed Yorkshire Energy Park metallization facility would generate 4,000 tonnes NdPr alloy annually, supporting European electric vehicle and renewable energy sectors. Pensana explores additional magnet manufacturing partnerships with Japanese companies, creating comprehensive rare earth value chains from Angolan mining through European processing and magnet production.

The Metalnomist Commentary

Pensana's Angola refinery construction represents a strategic breakthrough in Western efforts to establish alternative rare earth supply chains independent of Chinese dominance, particularly crucial as global demand for permanent magnet materials accelerates through clean energy transitions. The integrated approach from African mining through European processing demonstrates how allied nations can collaborate to secure critical minerals access while supporting local economic development in resource-rich regions.

ReElement and Pensana Secure Rare Earth Partnership

ReElement Technologies

Strategic REE Offtake Agreement

US-based ReElement Technologies and UK mine developer Pensana have signed an offtake agreement for rare earth element (REE) supply. The deal covers up to 20,000 t/yr of mixed rare earth carbonate (MREC) from Pensana’s Longonjo mine in Angola, over five years. The agreement will integrate ReElement’s refining platform to produce ultra-pure separated rare earth oxides for advanced applications.

Longonjo Mine Development and Global Reach

Pensana has invested over $70mn in the Longonjo project, which contains 139,457t of neodymium-praseodymium oxide. The mine will be developed in two phases, each targeting 20,000 t/yr of MREC output. With this offtake agreement, Pensana has secured buyers for its entire planned production, including prior commitments to Toyota Tsusho. Both companies will leverage the Lobito Corridor in Angola to reduce logistics costs and enhance global market access.

The Metalnomist Commentary

This agreement highlights how Western firms are securing critical rare earth supply chains outside China. By linking Longonjo’s resources with ReElement’s refining capabilities, the partnership strengthens diversification efforts in rare earth processing. The use of Angola’s Lobito Corridor also underscores the importance of logistics infrastructure in securing reliable global exports.

Saskatchewan Takes a Bold Step in Rare Earth Metals Production

Saskatchewan Rare Earth Production

Canada’s Saskatchewan Research Council (SRC) reached a significant milestone in the summer of 2024 by producing its first rare earth metals on a commercial scale, positioning its facility for full operation by early 2025. The plant is currently set to produce 10 tons per month of neodymium-praseodymium (NdPr) metal with over 99.5% purity and a conversion rate greater than 98%. This early success was made possible through tolling agreements with international clients, finalized in July 2024, allowing SRC to convert rare earth oxides into metals with minimal upfront investment in raw materials.

SRC aims to increase production to 40 tons per month by the end of 2024 and eventually reach 400 tons per year when the facility is fully operational. The facility has received significant support from both the Saskatchewan and Canadian governments, securing a total of $101 million in funding. The organization is also establishing international partnerships, including deals with Australia’s Arafura Rare Earths and Vietnam’s Hung Thinh Group, which will supply up to 3,000 tons of rare earth carbonate annually, starting in 2025. These efforts are part of SRC’s long-term goal to make Saskatchewan a hub for rare earth metals production, positioning Canada as a key player in the global rare earths market.

Lynas Increases NdPr Output at Malaysian Operations: Key Insights into Growth and Future Plans

Lynas Rare Earths

Lynas Rare Earths, an Australia-listed mining giant, has reported an increase in its neodymium-praseodymium (NdPr) output for the July-September 2024 quarter. The company’s Malaysian operations produced 1,677 tonnes (t) of NdPr oxide, a critical material for magnet manufacturing. This marks a notable increase from 1,504t in the previous quarter (April-June 2024) and 1,526t in the same period last year.

Despite an overall increase in NdPr output, Lynas’ total rare earth oxide production reached 2,722t during the period. This is a 24% increase compared to the previous quarter, though it represents a 24% decrease compared to the same quarter in 2023. While the company’s production capacity is growing, it remains focused on its target to achieve a 10,500t per year NdPr capacity by the fiscal year 2024-2025.

During the quarter, Lynas sold 2,837t of rare earth oxides, up by 5% compared to a year earlier, though slightly lower by 12% compared to April-June 2024. Despite the increase in sales volume, the company’s revenue declined by 5%, totaling A$120.5 million ($79.1 million). This drop was attributed to a decrease in the average selling price of rare earth products, which fell 9% to A$42.5 per kilogram.

Lynas is continuing to expand its operations, with significant progress at its Mount Weld project in Western Australia. This expansion is key to supplying the Lynas Malaysia facility and supporting future growth, particularly as the company ramps up production for its new Kalgoorlie facility in Western Australia. Notably, Lynas has completed the first stage of a concentrate dewatering circuit at Mount Weld and has already begun operations. The second stage of this project is expected to be completed by the end of the 2024-2025 fiscal year.

The Malaysian plant has also processed its first batch of mixed rare earth carbonate (MREC) from the new Kalgoorlie facility, marking another step forward in the company’s ambitious production ramp-up. As the quarter continues, Lynas expects to continue increasing output, with further advancements in both production and processing capabilities.

Lynas’ Ongoing Commitment to Expansion and Innovation

Lynas continued focus on expanding its production capacity, both in Malaysia and Western Australia, is a key factor in its long-term growth strategy. The ramp-up of the Kalgoorlie plant and the successful integration of new technologies at Mount Weld are expected to provide Lynas with the resources needed to meet the increasing global demand for rare earth metals, particularly NdPr, which is essential for electric vehicle (EV) motors, wind turbines, and other high-tech applications.

With the world increasingly relying on these critical minerals, Lynas’ position in the market looks promising. However, the company faces challenges, such as fluctuating commodity prices and increasing competition in the global rare earths sector. Lynas’ ability to scale up production while maintaining profitability will be key to its success in the coming years.