US Outpaces Europe in Critical Minerals Investment, Disrupting EU Plans

Malaysia is reviewing a supply agreement worth $96 million signed between Lynas Rare Earths and the US Department of Defense, after a parliamentary committee assessed whether the deal affects Malaysia’s stance in support of Palestine and its future rare earth policies. According to a previously issued statement, the Parliamentary Special Select Committee on International Relations and International Trade, chaired by Member of Parliament Wong Chen, convened on July 16 to discuss the role of the Australian company Lynas in the US defense supply chain. The committee heard submissions from government officials, non-governmental organizations, and senior executives of Lynas. The committee recommended that the government formulate a clearer foreign investment policy to protect Malaysia’s national interests and sovereignty, and clarify its position on this matter within two weeks. The committee said it called this meeting to examine and assess the impact of the supply agreement, which is allegedly affecting Malaysia’s long-standing stance in support of Palestine.

Canadian miner Resouro Strategic Metals is seeking funds to accelerate the development of its rare earth and titanium projects in Brazil, with the initial investment estimated at $160 million. The company plans to issue 8 million common shares through a private placement, aiming to raise C$2 million (approximately $1.4 million). The company said in a statement, "Resouro will use the proceeds for a pre-feasibility study, the urgent development of the Tiros rare earth and titanium project in Minas Gerais, and general working capital expenditures." Recently, Resouro completed a preliminary economic assessment of the Tiros project, estimating the initial construction investment at approximately $160 million. The company's projections indicate that the project is expected to process 500,000 mt of ore annually over its 20-year operational life.

[SMM Rare Earth Daily Review: Rare Earth Prices Stable, Actual Transactions Insufficient] In summary, at this stage, downstream new orders are poor, and purchasing enthusiasm is low. Meanwhile, upstream suppliers have weak willingness to sell at low prices, with quotations remaining relatively firm. The tug-of-war between upstream and downstream persists, and overall prices remain stable. In the short term, affected by weak supply-demand fundamentals, Pr-Nd product prices may move sideways in a narrow range.