Rare Earth Prices Continue Slight Decline Amid Weak Demand

US rare earth producer Energy Fuels stated that negotiations on the government stability agreement for its Vera Mada rare earth project in Madagascar slowed down due to management changes in the country, and the financial investment decision originally scheduled before the end of 2029 may be delayed. Meanwhile, the Donald project in Australia also faces delays due to the complexity of coordinating offtake agreements. Nevertheless, the company's first batch of terbium products has attracted significant market interest. Currently, approximately 1 kg of terbium is produced per week, and the company plans to increase production of heavy rare earths such as dysprosium, samarium, and gadolinium based on market demand.

US rare earth company REalloys received a formal memorandum from the US Department of Defense, emphasizing the urgency of building a domestic heavy rare earth element (HREE) supply chain ahead of the January 2027 ban on procurement of Chinese-sourced rare earth materials. REalloys is actively expanding North American metal supply capability to produce defense-grade dysprosium and terbium at commercial scale. The company has signed a long-term offtake agreement with the Saskatchewan Research Council (SRC) in Canada, securing annual raw material sufficient to produce 530 mt of rare earth metals, and is investing in expanding SRC's processing facilities to provide emergency supply assurance for fully closing the Chinese-sourced gap in the defense supply chain by 2027.

[SMM Rare Earth Weekly Review: Market Sluggish around Holiday, Rare Earth Prices in the Doldrums] The Pr-Nd oxide market saw a poor trading atmosphere recently. Downstream metal plants showed low enthusiasm in inquiries and procurement around the holiday, but upstream suppliers maintained firm offers amid tight spot cargo availability, and low-priced sources remained difficult to find. Overall, Pr-Nd oxide price fluctuations were relatively small. As of today, Pr-Nd oxide prices adjusted slightly downward to 762,000-768,000 yuan/mt.