SMM REE Brief: February 25

Brazil Rare Earths (BRE) has intersected ore bodies with total rare earth oxide (TREO) grades as high as 35.3% during step-out drilling at the Alto Hill deposit in the Rocha Project. At a depth of 115 meters, a 28-meter intersection graded 19.4%. Key elements included praseodymium-neodymium oxide at 5.96% and heavy rare earth dysprosium-terbium oxide at 0.305%, accompanied by high-value minerals such as niobium (1.7%) and scandium. Drilling has extended the ore body along strike to 1.2 kilometers and identified parallel ore bodies, indicating the area is becoming a world-class rare earth cluster. The company holds an inferred resource of 25.2 million mt (TREO grade 1%). Its low-temperature acid treatment process achieves a rare earth recovery rate of 97%.

Shenghe Resources (600392.SH) disclosed on the investor interaction platform that its majority-owned subsidiary Peak's Ngualla rare earth mine project in Tanzania has proven rare earth reserves of 18.5 million mt, with an average grade of 4.8%, translating to an REO content of 887,000 mt.

The US Department of Defense awarded $2 million to ReElement Technologies to help expand its rare earth element separation capacity at its Marion, Indiana plant. The two-year grant, although awarded on September 3, was delayed due to the federal government shutdown at the end of 2025 and was only announced this week. The move by the US Department of Defense aims to strengthen the US's access to raw materials produced domestically and by allies, reducing reliance on China-dominated supply chains. The funds will be invested in ore processing, magnet recycling, and scrap processing.