Iran Conflict Has Minimal Impact on Rare Earth Industry, May Affect European Prices

The US Defense Logistics Agency signed a contract with rare earth producer REalloys to support the development of next-generation thermal reduction technology for samarium and gadolinium metals. The core of the effort is to build a plant with an annual capacity of 300 mt to reduce mixed samarium–europium–gadolinium concentrates into high-purity metals. At present, the US has no commercial production of either metal and is heavily reliant on overseas supply. REalloys said its process can cut costs by 50% and has been patented. The move aims to establish domestic capacity and strengthen national defense supply chain security.

Neo Performance Materials of Canada and Cyclic Materials announced that they have reached a rare earth recycling agreement. Neo will supply Cyclic with magnet production scrap from its European plants, which Cyclic will recycle into mixed rare earth oxides for Neo to manufacture alloys and magnets. This move aligns with the objectives of the EU Critical Raw Materials Act and enhances rare earth processing and recycling capacity. Neo operates a 2,000 mt/year magnet facility in Estonia and is expected to expand it to 5,000 mt/year. Cyclic is building a recycling campus in South Carolina, with initial capacity of 2,000 mt/year for magnet processing and 600 mt/year for mixed rare earth oxides, which will increase to 6,000 mt/year and 1,800 mt/year, respectively, after expansion.

US critical minerals producer Energy Fuels said that once its Donald project in Australia comes on stream, it was expected to meet up to 50% of US demand for heavy rare earth elements. The project was expected to supply rare earths to the White Mesa facility in Utah from the end of 2027 to early 2028. In Phase 1, the Donald project could meet about 25% of US heavy rare earth demand, and Phase 2 could increase this to 50%. The project will produce 1,531 mt of Pr-Nd oxide, 168 mt of dysprosium, and 29 mt of terbium per year. After the Phase 2 expansion of the White Mesa facility, dysprosium capacity will reach 288 mt/year and terbium 80 mt/year.