Energy Fuels Terbium Oxide Output Advances US Heavy Rare Earth Supply

Energy Fuels

Energy Fuels terbium oxide production marked an important step in rebuilding US heavy rare earth processing capacity. The company produced its first kilogram of 99.9% purity terbium oxide at its White Mesa Mill in Utah.

The pilot-scale output used monazite ore mined in Florida and Georgia. Energy Fuels said the high-purity terbium oxide met rare earth magnet manufacturer specifications.

Energy Fuels terbium oxide production is strategically significant because terbium remains one of the most supply-sensitive heavy rare earths. It is used in high-performance permanent magnets that support electric vehicles, wind turbines, defense systems, robotics, and advanced electronics.

White Mesa Mill Builds Heavy Rare Earth Processing Capability

The White Mesa Mill is becoming a key US platform for rare earth separation from monazite feedstock. Energy Fuels said the terbium oxide was the first US production from primary mineral feedstock in many decades.

The company has also produced dysprosium oxide at pilot scale at the same site. Since August, it has produced nearly 30kg of 99.9% pure dysprosium oxide.

Dysprosium and terbium are critical because they improve magnet performance under high-temperature and demanding operating conditions. This makes them especially important for advanced motors, defense technologies, and high-efficiency industrial systems.

Phase 2 Expansion Targets Commercial Rare Earth Oxide Output

Energy Fuels plans to expand heavy rare earth oxide production over the coming years. After completing its phase 2 circuit, the company expects capacity of 288t/yr of dysprosium oxide, 80t/yr of terbium oxide, and 6,000t/yr of neodymium-praseodymium oxide.

The phase 2 circuit could be completed as early as 2029. If achieved, the expansion would move Energy Fuels from pilot-scale production toward a more meaningful role in the US rare earth magnet supply chain.

Energy Fuels terbium oxide output also shows how domestic mineral feedstock, separation technology, and magnet-sector specifications must connect. The US rare earth strategy depends not only on mining, but also on producing separated oxides that downstream manufacturers can actually use.

The Metalnomist Commentary

Energy Fuels’ pilot terbium oxide output is small in volume but large in strategic meaning. The real test will be whether White Mesa can scale heavy rare earth separation into reliable commercial supply for magnet and defense customers.

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

Vacuumschmelze

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

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

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

Export controls and price spikes intensify heavy rare earth risk

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

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

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

Western magnet supply chains pivot toward diversified feedstocks

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

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

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

The Metalnomist Commentary

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

Australia's Iluka Predicts Increased Rare Earth Demand by 2033

iluka resources

According to Tom O'Leary, CEO of Australian mineral producer Iluka Resources, the evolving global demand driven by renewable energy technologies is expected to significantly increase the consumption of neodymium, praseodymium, dysprosium, and terbium by 2033. O'Leary shared these insights at the International Rare Earth Industry Association's annual conference in Tokyo, Japan, last week.

Iluka anticipates that the ongoing transition to renewable energy, particularly through electric vehicles (EVs) and wind power, will continue to drive the demand for rare earth materials over the next decade. O'Leary stated that global demand for praseodymium-neodymium and dysprosium/terbium is projected to rise from 63,000 tons per year (t/yr) in 2023 to between 93,000 and 171,000 t/yr by 2033. Specifically, the consumption of dysprosium/terbium is expected to grow from 1,100 t/yr to between 1,900 and 5,100 t/yr during this period.

In the EV sector alone, the demand for praseodymium-neodymium is expected to increase from 12,000 t/yr in 2023 to between 33,000 and 62,000 t/yr by 2033. Similarly, the EV sector's demand for dysprosium and terbium is likely to rise from 500 t/yr to between 1,300 and 3,000 t/yr over the same timeframe.

The wind power sector is also expected to see a significant rise in praseodymium-neodymium consumption, projected to grow from 6,000 t/yr in 2023 to 26,000 t/yr by 2033. The demand for dysprosium and terbium in this sector is anticipated to increase from 200 t/yr to between 300 and 1,600 t/yr.

Other application fields, including automotive, consumer electronics, industrial applications, and home appliances, are forecasted to consume between 53,000 and 83,000 t/yr of praseodymium-neodymium by 2033, up from 45,000 t/yr in 2023. The consumption of dysprosium and terbium in these fields is expected to grow from 300 t/yr to between 400 and 600 t/yr during the same period.

Iluka predicts that by 2030, 35% of global demand for dysprosium and terbium will come from e-mobility sectors, and 20% from wind power. "The global supply of dysprosium and terbium in 2030 is projected to fall short of total demand," O'Leary noted. "Iluka's Eneabba refinery is expected to account for more than half of the supply outside China once it starts commercial production by 2025."

Iluka, which produces zircon, ilmenite, and rutile in Australia and Sierra Leone, aims to achieve an annual output capacity of up to 23,000 t/yr of rare earth oxide (REO), including 5,500 t/yr of praseodymium-neodymium oxide and 725 t/yr of dysprosium and terbium oxide from its refinery, supported by a $1.25 billion non-recourse loan from the Australian government.

The company has also signed an initial agreement with rare earths developer Northern Minerals to supply concentrate to Iluka's Eneabba refinery, set to commence production in 2025-26. This agreement includes the provision of 30,500 t of rare earth concentrates from Northern Minerals' Browns Range project, with an annual supply of 5,000 t for the first four years.

Iluka has a secure supply of heavy rare earths from stockpiles at its Eneabba refinery and additional supply options from its Balranald project and Wimmera deposits in New South Wales and Victoria. The Eneabba refinery can be supplied for five years with its stockpile of 1 million t of high-grade rare earth concentrate, readily available at the surface. The Balranald project is expected to deliver an additional 5,000 t/yr of rare earth concentrate from 2026. Feasibility studies are ongoing at the Wimmera deposit, which has the potential to supply 15,000 t/yr of rare earth concentrates over a mine life exceeding 25 years.

Heavy Rare Earth Supply Push Gains US Defense Backing Through REalloys

REalloys

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

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

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

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

Dysprosium and Terbium Become Defense-Critical Materials

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

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

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

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

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

Metallisation Capacity Is the Midstream Bottleneck

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

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

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

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

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

The Metalnomist Commentary

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

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

Ru

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

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

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

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

Heavy Rare Earth Controls Tighten Supply to Japan

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

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

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

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

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

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

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

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

Magnet and Aerospace Users Face Licensing Risk

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

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

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

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

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

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

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

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

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

The Metalnomist Commentary

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

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.

REalloys HRE Metallization Plant Targets North American Defense Magnet Supply

REalloys

REalloys HRE metallization plant development marks another step in North America’s effort to secure heavy rare earth metals for defense supply chains. The US rare earth company plans to build the facility in partnership with Canada’s Saskatchewan Research Council, with equipment first built alongside SRC and later relocated to Ohio.

The REalloys HRE metallization plant is designed to serve downstream US defense industrial-base customers and support the US Defense Logistics Agency’s strategic rare earth stockpiles. Initial operations are scheduled for early to mid-2027, with full commercial-scale operations expected in mid- to late 2027.

The project directly targets dysprosium and terbium, two heavy rare earth elements used in high-performance permanent magnets. These metals are critical for defense systems, advanced motors, aerospace platforms, precision equipment, and high-temperature magnet applications.

Dysprosium and Terbium Metallization Becomes a Strategic Bottleneck

The most important part of the REalloys HRE metallization plant is not only its oxide supply route, but its metallization capability. Rare earth oxides must be converted into metal before they can move deeper into magnet alloy and magnet manufacturing supply chains.

The facility will produce about 30 tonnes per year of dysprosium metal and 15 tonnes per year of terbium metal. These are small volumes compared with bulk industrial metals, but they are strategically significant because heavy rare earth supply chains remain highly concentrated.

Dysprosium and terbium help permanent magnets maintain performance under high temperatures. This makes them essential for defense magnets, electric motors, guidance systems, and other demanding applications where magnet failure is not acceptable.

SRC Partnership Links Canadian Processing With US Defense Demand

The partnership connects SRC’s rare earth processing capability in Saskatoon with REalloys’ planned Ohio-based metallization facility. SRC’s Rare Earth Processing Facility will produce high-purity neodymium-praseodymium metal and dysprosium and terbium oxide, which will then be further processed and metallized at REalloys’ HREMF.

The structure creates a North American processing chain that moves beyond simple mining or separation. It links oxide production, metal conversion, and downstream defense demand into one regional supply pathway.

SRC also has a tolling agreement with a Vietnamese company that enables production of 400 tonnes per year of rare earth metals. That arrangement may provide additional processing flexibility as North America builds rare earth capacity before fully integrated domestic supply becomes available.

The Metalnomist Commentary

This project shows that rare earth security is moving into the metallization stage, where supply chains often remain weakest. For defense magnets, controlling dysprosium and terbium metal supply could matter as much as controlling rare earth deposits.

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.

Aclara HREE separation plant anchors US heavy rare earth strategy

Aclara

Aclara HREE separation plant plans to reshape the US heavy rare earths supply chain by targeting dysprosium and terbium for EVs. The Aclara HREE separation plant in Louisiana will draw feed from ionic clay deposits in Brazil and Chile. As a result, the Aclara HREE separation plant positions the US to cut reliance on Chinese-controlled heavy rare earths.

Louisiana HREE hub to cover most US dysprosium and terbium demand

Aclara will invest $277mn in a Louisiana heavy rare earths separation facility focused on dysprosium, terbium and NdPr oxides. The company targets completion in 2027 and aims to supply more than 75pc of US dysprosium and terbium demand for EVs by 2028. This volume would materially shift US sourcing patterns for critical magnet materials.

The project benefits from approximately $46.4mn in state tax incentives and grants, underlining Louisiana’s push to attract strategic materials investments. Meanwhile, Aclara plans to integrate the separation plant with a future metals and alloys facility on the same site. This integrated footprint could support a mine-to-magnet pathway once downstream alloying and magnet projects materialise.

Ionic clay deposits in Brazil and Chile underpin feedstock security

Aclara will supply the Louisiana plant with feed from two ionic clay deposits located in Brazil and Chile. These deposits are expected to be operational in 2028, slightly lagging the HREE plant start-up. The company targets annual production of about 200t of dysprosium, 30t of terbium and 1,400t of separated neodymium-praseodymium oxide.

In Brazil, Aclara has already started de-risking its flowsheet through pilot operations. The Carina Project pilot plant in Goiania began running in April and produced its first rare earths concentrate in June. The firm also expects up to $5mn in support from the US International Development Finance Corporation, signalling strong strategic interest from Washington. Together, the Louisiana plant and South American deposits outline a multi-node HREE supply chain geared to long-term EV and magnet demand.

US HREE separation plant sits at the heart of magnet supply realignment

Aclara’s US HREE separation plant joins a growing list of projects aimed at diversifying global heavy rare earths supply. However, few projects are configured to supply such a large share of the domestic dysprosium and terbium market. If timelines hold, Louisiana could become a cornerstone hub feeding US and allied magnet manufacturers before the end of the decade.

At the same time, building metals and alloys capacity on-site raises the prospect of deeper value capture within US borders. Therefore, the project’s success will be judged not only on tonnage but also on how effectively it links to magnet makers and OEMs. For automakers and defense contractors, locking in offtake from a US-based HREE separation plant may become a strategic priority.

The Metalnomist Commentary

Aclara’s HREE separation investment in Louisiana illustrates how quickly the heavy rare earth landscape is evolving under geopolitical pressure. The combination of ionic clay feed from Brazil and Chile with US separation capacity provides a diversified platform that investors and OEMs will watch closely. If execution matches ambition, this project could become a reference model for trans-regional critical mineral partnerships anchored in US downstream processing.

MP Materials dysprosium and terbium production to start in 2026

MP Materials

MP Materials dysprosium and terbium production will mark a major step in US heavy rare earth independence. The company expects MP Materials dysprosium and terbium production to begin by mid-2026 at its new heavy circuit. As a result, MP Materials dysprosium and terbium production will directly support its integrated NdFeB magnet growth strategy.

Heavy rare earth circuit underpins US magnet ambitions

MP Materials will commission a heavy rare earth circuit processing about 3,000 t/yr of feedstock. The plant will produce more than 200 t/yr of dysprosium and terbium combined once fully ramped up. Because Dy and Tb are key magnet dopants, this output will secure supply for high-performance NdFeB magnets.

The ore body at Mountain Pass contains Dy and Tb in a roughly 3:1 ratio, which will shape output splits. Therefore, the heavy circuit design optimises recovery around that natural distribution. This configuration will fully enable MP’s planned 10,000 t/yr of NdFeB magnet production capacity.

MP also plans its “10X” magnet manufacturing facility, targeting commissioning in 2028. Production from that plant will be fully backed by long-term offtake agreements. This coordinated mining, separation and magnet build-out strengthens a closed-loop rare earth supply chain within North America.

Broader heavy rare earth portfolio and pricing dynamics

MP is not limiting its strategy to Dy and Tb alone. The company has committed to produce samarium oxide by 2028 as part of its portfolio. It also sees gadolinium as a logical next element to develop around the same timeframe.

Meanwhile, MP is in active talks with other feedstock providers to supplement heavy rare earth supply. This approach reduces single-asset risk and supports long-term contract reliability for downstream customers. It also positions MP as a potential hub for third-party concentrates entering US processing infrastructure.

On the light rare earth side, MP produced a record 721t of NdPr oxide in the third quarter. Output rose 21pc quarter on quarter as operations continued to ramp. The firm expects a realized NdPr price of about $61/kg in the fourth quarter, excluding its floor-price contract.

The long-term purchase agreement includes a floor of $110/kg for NdPr. The gap between the spot-linked realized price and this floor will be booked as contract income. This mechanism should support earnings stability as market prices fluctuate.

The Metalnomist Commentary

MP’s move into heavy rare earths is a pivotal development for US magnet supply chains. Dy and Tb are small-volume but high-leverage elements for EV motors and defence applications. If execution matches the roadmap, Mountain Pass plus 10X could become a cornerstone of Western magnet security, though profitability will still depend on careful management of capex, pricing floors and third-party feedstock risk.

Lynas produces terbium oxide at Malaysian plant

Lynas Rare Earths

Lynas expands rare earth production capabilities

Australian rare earths producer Lynas Rare Earths has achieved a major milestone by producing terbium oxide at its Malaysian facility. The product was manufactured using the plant’s 1,500 t/yr heavy rare earth separation circuits, commissioned earlier this year. The same circuits previously delivered separated dysprosium in May, making Lynas the first producer of separated heavy rare earths outside China.

This breakthrough positions Lynas as a critical supplier in global rare earth markets. The company plans to broaden its portfolio to include dysprosium, terbium, holmium concentrate, and unseparated samarium/europium/gadolinium, alongside mixed heavy rare earth products. The expansion comes amid rising supply chain concerns, as US and European automakers have warned that Chinese export restrictions could disrupt production lines.

Strategic feedstock and future US capacity

Lynas sources feedstock for its Malaysian plant from the Mount Weld mine and Kalgoorlie processing plant in Western Australia. However, it is also exploring new supply routes, signing an agreement in May with Malaysia’s Menteri Besar Investment Agency to purchase mixed rare earth carbonates from developing ionic clay deposits.

In parallel, Lynas is constructing a rare earth production plant in the US with similar capabilities to its Malaysian site. Once operational, the facility is expected to produce 2,500–3,000 t/yr of heavy rare earths and 5,000 t/yr of light rare earths. The project received funding through a 2019 US presidential directive under the Defence Production Act, highlighting the material’s importance to national security and industrial resilience.

The Metalnomist Commentary

Lynas’ production of terbium oxide is a strategic leap for non-Chinese supply chains. By expanding heavy rare earth output in Malaysia and developing US-based capacity, the company is strengthening Western resilience in critical minerals. These moves directly address growing concerns over Chinese export controls and highlight Lynas’ role as a pivotal global supplier.

Energy Fuels Madagascar Rare Earths Project Faces Delay After Government Change

Energy Fuels

Energy Fuels Madagascar rare earths project is likely to face a delay after a change in government slowed negotiations for a stability agreement. The US rare earths producer said progress on the Vera Mada project in Madagascar has been held back by the administrative transition.

Energy Fuels Madagascar rare earths project had been moving toward an investment agreement before the government change in September-October last year. Chief executive Ross Bhappu said the company had been close to signing the agreement before the process slowed.

Energy Fuels Madagascar rare earths project remains strategically important because Vera Mada is expected to produce monazite, a key rare earth-bearing mineral used to feed separation and downstream processing. The company initially planned to reach a financial investment decision tied to development and commissioning by the end of 2029.

The first phase of Vera Mada is planned with capacity to produce 20,000 t/yr of monazite. Any delay could affect Energy Fuels’ timeline for building a larger rare earth feedstock platform outside China.

Vera Mada and Donald Show Feedstock Complexity

The Vera Mada delay highlights how rare earth projects depend on more than geology. Government agreements, legal stability, fiscal terms and political continuity can all determine whether a project reaches investment decision.

A stability agreement is especially important in emerging mining jurisdictions. It can provide investors with clearer expectations around taxes, permitting, operating rules and long-term project protections.

Energy Fuels is also facing delays at the Donald project in Australia. The project is a joint venture with Astron and is designed to produce 14,000 t/yr of monazite.

Donald has been slowed by the need to finalise offtake agreements for more than four heavy mineral concentrates. Energy Fuels must also coordinate those agreements with financing parties and its joint venture partner.

That process is commercially complex because monazite projects often produce several mineral streams. Each product can require separate customers, pricing structures, logistics arrangements and financing approval.

These delays show the challenge of building rare earth supply chains outside China. Upstream projects must secure feedstock, offtake, financing, regulatory approval and processing routes before they can become meaningful industrial supply.

Terbium, Dysprosium and Yttrium Lift Strategic Value

Energy Fuels is still gaining market attention from its downstream rare earth progress. The company said it received substantial offtaker interest after producing its first terbium.

The company is currently producing about 1kg of terbium each week. It plans to add dysprosium production and other heavy rare earths such as samarium, europium, gadolinium and possibly yttrium, depending on market conditions.

This matters because terbium and dysprosium are critical inputs for high-performance permanent magnets. These magnets are used in electric vehicles, wind turbines, robotics, defence systems and advanced industrial equipment.

Yttrium is also gaining strategic attention. Energy Fuels said demand and requests for yttrium from the aerospace industry are extremely strong.

The company’s first-quarter financial performance also improved. Its loss narrowed to $11mn on revenue of $36mn, compared with a $26mn loss on revenue of $17mn a year earlier.

Energy Fuels is therefore advancing on two fronts. It is building heavy rare earth separation capability, while trying to secure long-term monazite feedstock from Madagascar and Australia.

The near-term risk is timing. If Vera Mada and Donald continue to slip, Energy Fuels may need to rely more heavily on existing and alternative feedstock sources to support its rare earth growth strategy.

The Metalnomist Commentary

Energy Fuels’ challenge shows that rare earth supply chains are constrained by project execution as much as processing technology. Terbium, dysprosium and yttrium demand is strong, but feedstock security will decide how quickly non-China supply can scale.

Lynas to Begin Heavy Rare Earth Production in Malaysia by 2025

Lynas Rare Earths

Lynas Rare Earths, an Australia-listed mining company, is set to commence the production of two separated heavy rare earth (HRE) products at its Malaysian facility by 2025. This will involve the production of separated dysprosium and terbium at one of Lynas Malaysia's solvent extraction circuits. The facility is designed to separate up to 1,500 tons per year of a mixed heavy rare earth compound, which includes samarium, europium, gadolinium, holmium, dysprosium, and terbium (SEGH).

The HRE project has completed its initial engineering phase, and detailed engineering design is currently underway. Commissioning and ramp-up are expected by mid-2025. Post-separation, Lynas' HRE product range will expand to include five products: dysprosium, terbium, unseparated samarium/europium/gadolinium, holmium concentrate, and unseparated SEGH.

Dysprosium and terbium are critical for producing high-performance rare earth magnets, which are essential components in consumer electronics, electric vehicle engines, and other automotive applications.

Lynas is also advancing pre-construction activities for its planned rare earth processing facility in the United States. Both its Malaysian and US facilities are designed to accept third-party feedstocks once they commence operations.

According to Amanda Lacaze, Lynas' Chief Executive Officer and Managing Director, the production of heavy rare earths will help accelerate the company's commitment to processing all elements sourced from the firm's Mount Weld ore site in Australia.

Supply Chain Context

In response to the rapid evolution of the clean energy sector and the need to reduce dependence on Chinese supplies, many national governments are working to build or diversify more resilient and sustainable rare earth supply chains. China, the world's largest supplier of medium and heavy rare earths, has been enforcing stricter export control policies for rare earth extraction and separation technology.

Progress on rare earth projects outside China has been limited, especially in the HRE market, due to constraints such as exploration techniques, ore resource shortages, production costs, capital pressures, and environmental considerations. US-based rare earth producer MP Materials aims to develop an HRE production facility within the next few years. The company began producing neodymium-praseodymium oxide in the third quarter of last year and plans to commence commercial production of finished magnets by late 2025.

Australian mineral producer Iluka Resources plans to achieve an output capacity of up to 23,000 tons per year of rare earth oxide, including 5,500 tons per year of neodymium-praseodymium oxide and 725 tons per year of dysprosium and terbium oxide from its refinery in Australia.

Aclara Rare Earth Oxides Plan Links Brazil Mining to US Separation

aclara

Aclara rare earth oxides production plans have been reaffirmed for the Carina project in Brazil, strengthening the company’s role in the emerging Americas rare earth supply chain. The Brazilian rare earth producer expects to produce more than 4,300 t/yr of rare earth oxides from 2028.

Aclara rare earth oxides output is expected to average 4,378 t/yr contained in mixed rare earth concentrate. The planned product mix includes 1,191 t/yr of neodymium-praseodymium, 156 t/yr of dysprosium and 27 t/yr of terbium.

Aclara rare earth oxides are strategically important because NdPr, dysprosium and terbium are key inputs for high-performance permanent magnets. These magnets are used in electric vehicles, wind turbines, robotics, defence systems and advanced industrial motors.

The Carina project is expected to have an 18-year mine life. Production costs are estimated at $29.20/kg of rare earth oxide produced, giving investors and customers a clearer basis for assessing the project’s long-term competitiveness.

Carina Project Adds Heavy Rare Earths to the Americas Supply Base

The Carina project’s value is not limited to light rare earths. Its mixed rare earth concentrate also contains several heavy rare earth elements that are difficult to secure outside China-linked supply chains.

Aclara expects annual output to include 173 t of samarium, 176 t of gadolinium, 10 t of lutetium and 1,160 t of yttrium. These materials add strategic depth to the project because heavy rare earth supply remains highly concentrated and increasingly sensitive to export controls.

Dysprosium and terbium are especially important for magnet performance. They improve heat resistance and magnetic stability in demanding applications such as EV traction motors, wind turbine generators and defence electronics.

The project therefore fits a wider western effort to build alternative rare earth supply chains. Brazil offers mineral potential, while the US provides downstream policy support and processing infrastructure incentives.

Construction at Carina is scheduled to begin in the third quarter of 2026. Initial output is expected in the second half of 2028, followed by ramp-up in 2029.

Louisiana Separation Plan Builds Downstream Magnet Chain

Aclara plans to send material from Carina to Louisiana for separation and processing. The US site will produce rare earth metals and alloys, moving the project beyond mine supply into downstream magnet material preparation.

This structure matters because rare earth security depends on more than mining. Mixed rare earth concentrate must be separated, refined, converted into metals and alloyed before it can support permanent magnet production.

The Louisiana processing route could therefore create a more integrated Brazil-US rare earth chain. It links Brazilian ionic clay-style rare earth resources with US separation, metal and alloy capacity.

Public-sector support strengthens the project’s strategic profile. The US International Development Finance Corporation provided $5mn for Carina’s development, while Louisiana granted $46mn in tax incentives to accelerate the separation project.

For western magnet manufacturers, Aclara’s model offers potential supply diversification. The company could provide NdPr, dysprosium and terbium units into a market where downstream users are actively seeking non-China material.

However, execution remains critical. The project must move through construction, commissioning, ramp-up and qualification before it can become a reliable supply source for magnet makers and strategic customers.

The Metalnomist Commentary

Aclara’s plan shows that rare earth competitiveness now depends on linking mine output with separation and metal conversion. The Brazil-Louisiana route could become strategically important if it delivers heavy rare earth volumes into the Americas magnet supply chain.

Lynas Heavy Rare Earths Production Breaks China's Market Monopoly

Lynas Rare Earths

Lynas heavy rare earths production achieved a historic milestone by becoming the first non-Chinese producer of separated dysprosium. The Australian mineral company's Lynas heavy rare earths facility in Malaysia successfully produced separated dysprosium, marking a significant breakthrough in global supply chain diversification for critical minerals essential to advanced manufacturing and defense applications.

Malaysian Plant Establishes Alternative Supply Chain

Lynas heavy rare earths processing capabilities expanded significantly during the first quarter of 2025. The company constructed dysprosium and terbium processing circuits at its Malaysian facility, with capacity to separate up to 1,500 tonnes per year of heavy rare earths. These new circuits position Lynas to challenge China's dominance in the separated heavy rare earths market.

Meanwhile, Lynas plans to commence separated terbium production next month at the same facility. The processing circuits will eventually enable production of separated dysprosium, terbium, and holmium concentrate. Additionally, the facility will produce unseparated samarium/europium/gadolinium and unseparated mixed heavy rare earths, creating a comprehensive product portfolio.

Strategic Timing Amid Chinese Export Restrictions

However, the breakthrough comes at a critical juncture for global rare earths markets. Chinese suppliers recently limited offers for rare earth minerals, including dysprosium and terbium, following government export control tightening. This timing underscores the strategic importance of establishing alternative supply sources outside China's control.

Therefore, Lynas' production achievement addresses growing concerns about supply chain vulnerability in critical minerals. The company's Q1 2025 total rare earth oxide production reached 1,911 tonnes, including 1,509 tonnes of NdPr oxide. Production declined 46% year-on-year due to improvement and maintenance works across Malaysian and Western Australian operations.

US Partnership Strengthens Supply Chain Resilience

Furthermore, Lynas continues developing another rare earths processing plant in Texas with US government support. The American facility will produce both separated heavy and light rare earths, further reducing Western dependence on Chinese supplies. This dual-facility strategy creates redundancy and geographic diversification for critical mineral processing.

As a result, Lynas positions itself as a cornerstone of Western rare earths supply chain security. The company's expansion into heavy rare earths processing represents a strategic shift from its traditional focus on light rare earths production, addressing military and high-tech manufacturing requirements.

The Metalnomist Commentary

Lynas' achievement in producing separated heavy rare earths outside China represents a watershed moment for global supply chain resilience in critical minerals. The timing coincides perfectly with Chinese export restrictions, demonstrating the urgent need for alternative suppliers in materials essential to clean energy, defense, and advanced technology sectors.

Australia Northern Minerals Share Sale Order Tightens Control Over Browns Range

Jim Chalmers

Australia Northern Minerals share sale order has renewed scrutiny over foreign ownership of one of the few dysprosium, terbium and yttrium-rich rare earth projects outside China. Australian treasurer Jim Chalmers has ordered five companies and one individual to sell 1.68bn shares in Northern Minerals by 2 July.

Australia Northern Minerals share sale involves 17.6% of the company’s equity, valued at about A$37mn at the latest share price. Most of the parties affected by the order are registered in China or Hong Kong.

Australia Northern Minerals share sale matters because Northern Minerals is developing the Browns Range rare earths mine and concentration plant in Western Australia. The project is expected to produce 5,000 t/yr and is one of the most strategically important heavy rare earth assets in the western supply chain.

The order follows a similar disposal action in 2024, also based on national security concerns. This makes the case more than a shareholder dispute; it is part of Australia’s broader effort to protect critical minerals assets from strategic control risk.

Browns Range Holds Strategic Heavy Rare Earth Value

Browns Range is important because it is rich in dysprosium, terbium and yttrium. These materials are difficult to source outside China and are critical to high-performance permanent magnets.

Dysprosium and terbium help magnets retain performance at high temperatures. That makes them essential for electric vehicles, wind turbines, industrial motors, defence systems, aerospace platforms and advanced electronics.

Northern Minerals is targeting a final investment decision by 30 September. Production is expected to begin in late 2028 to early 2029.

That timeline matters because western manufacturers are trying to build rare earth magnet supply chains before Chinese export controls tighten further. A project like Browns Range could help reduce dependence on China’s heavy rare earth dominance.

But ownership and governance are now central issues. The Australian government clearly wants strategic rare earth assets to remain aligned with national security and allied supply-chain objectives.

The dispute has already involved voting freezes, court proceedings and penalties linked to non-compliance with earlier disposal orders. That shows how sensitive rare earth project control has become.

Allied Funding Raises the Project’s Geopolitical Weight

Browns Range was included in the US-Australian critical minerals joint investment agreement last October. That makes the project part of a wider allied strategy to build resilient rare earth supply chains.

Joint funding of up to $230mn from the US Export-Import Bank and Export Finance Australia was pledged to support the project. This signals that Browns Range is being treated as a strategic supply asset, not only a commercial mine.

The funding also reflects a broader policy shift. Western governments are increasingly using finance, ownership oversight and foreign investment review to shape who controls critical mineral assets.

For Australia, the renewed share sale order reinforces its role as a critical minerals gatekeeper. The country wants foreign investment, but it is drawing a clearer line around assets tied to defence, clean energy and advanced manufacturing.

For rare earth buyers, the decision may improve confidence that Browns Range will remain aligned with western supply-chain security goals. But the legal and shareholder disputes also show that development risk remains high.

The wider market signal is clear. Heavy rare earth projects outside China are becoming too important to leave ownership structure to market forces alone.

The Metalnomist Commentary

The renewed Northern Minerals order shows that heavy rare earths have moved firmly into national security territory. Browns Range is valuable not only because of its geology, but because it could anchor non-China dysprosium and terbium supply for magnets, defence and electrification.

ReElement Technologies Advances US Defense Capabilities with Domestic Terbium Production

ReElement Technologies

ReElement Technologies, a US-based developer of high-performance refining capacities for rare earths and battery metals, has achieved a significant milestone by producing 99.5% pure terbium, enhancing the resilience of defense technologies.

Strategic Advancements in Rare Earth Refining

Located at its Commercial Qualification Plant in Noblesville, Indiana, ReElement Technologies—a subsidiary of American Resources—is pioneering the separation and refinement of terbium along with other rare earth elements like dysprosium, neodymium, and praseodymium. The company's focus on heavy and light rare earths is crucial for supplying materials to the magnet and energy storage industries, which are vital for modern defense applications such as aircraft, submarines, and missile systems.

Terbium, known for its scarcity and difficulty in refinement, constitutes less than 1% of the total rare earth content in most deposits. Its ability to enhance the temperature resilience of neodymium iron boron magnets makes it indispensable for various defense mechanisms.

Innovative Technologies Paving the Way

ReElement Technologies employs ligand-assisted displacement (LAD) chromatography for its refining processes, setting a new standard for environmental and operational efficiency. This method is touted as cleaner and more efficient than traditional solvent-based extraction methods, characterized by higher yield, productivity, and flexibility, and importantly, it avoids the use of harsh or toxic chemicals.

The company’s approach not only supports more sustainable mining practices but also reduces the logistical and environmental challenges associated with transporting raw ore across long distances. By localizing processing and utilizing LAD chromatography, ReElement not only adheres to stringent environmental standards but also aims to compete with, if not undercut, the costs associated with rare earth oxides currently dominated by Chinese producers.

As part of its strategic initiative, in April, ReElement expanded its exclusive use of LAD chromatography patents to encompass a broader range of rare earth ores, reinforcing its capability to lead in the domestic production of these critical materials at competitive prices.

Torngat Secures C$165mn for Strange Lake Rare Earths Project

Torngat Metals

Canadian Financing Supports Rare Earth Development in Quebec

Torngat Metals has secured C$165mn in funding from two major Canadian institutions to advance its Strange Lake rare earth project in Nunavik, Quebec. The package includes C$110mn ($81mn) from Export Development Canada (EDC) and C$55mn from the Canada Infrastructure Bank (CIB). The project aims to produce large volumes of dysprosium and terbium, which are essential for permanent magnets and low-carbon technologies.

This funding will support pre-construction activities such as engineering and environmental studies, both of which are required before permit applications for infrastructure can be submitted.

Strengthening North American Rare Earth Supply Chains

The Strange Lake Project is positioned to play a vital role in reducing North America’s reliance on Chinese rare earth exports. The US remains highly dependent on Chinese supply, particularly for dysprosium and terbium used in magnets for defense, renewable energy, and electric vehicles. By securing domestic production in Canada, Torngat’s project could provide a strategic alternative and diversify supply chains across North America.

The funding will be released in phases, linked to progress milestones in engineering and environmental compliance. Torngat also intends to launch resource project financing in 2025 to secure full funding before the year’s end.

Strategic Importance of Dysprosium and Terbium

Dysprosium and terbium are critical for producing high-performance permanent magnets that can withstand extreme conditions. These magnets are indispensable in offshore wind turbines, electric vehicles, and advanced defense systems. As global demand for these elements rises, projects like Strange Lake represent an important step toward securing stable, long-term supplies outside of China.

Canada’s commitment to financing demonstrates the increasing alignment between resource development and energy transition strategies. The Strange Lake project is set to enhance both economic and strategic resilience in the region.

The Metalnomist Commentary

Torngat’s Strange Lake project underscores the growing urgency to secure rare earth supplies in North America. The combination of government-backed financing and strategic resource potential positions the project as a cornerstone for regional supply diversification. However, success will depend on timely permitting, environmental compliance, and effective project financing through 2025.

Lynas heavy rare earth plant anchors non-China supply shift

Lynas

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

Lynas heavy rare earth plant targets samarium and yttrium demand

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

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

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

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

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

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

The Metalnomist Commentary

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