The diversification of the global rare earth supply chain is accelerating, with South Asia and South America becoming new focal points for strategic deployment [SMM Rare Earth Overseas Weekly Review].

Malaysia Seeks Rare Earth Cooperation

Malaysia is actively promoting cooperation with China in the field of rare earth processing. The Malaysian sovereign wealth fund, Khazanah Nasional, may collaborate with a Chinese state-owned enterprise to build a rare earth processing plant in Malaysia. Malaysia stated that it needs Chinese technology to develop its domestic rare earth industry supply chain, despite the risk of opposition from "certain countries." Malaysia possesses rare earth reserves valued at approximately 1.5 trillion yuan but lacks mature mining and processing technologies.

US Promotes Supply Chain Diversification

The US government proposed a plan to purchase equity in Australian critical mineral companies as part of a financing initiative to expand supply and reduce reliance on China. An Australian delegation comprising 15 critical mineral companies visited Washington and New York in September, meeting with senior US government officials. The US side indicated it would evaluate corporate proposals and advance projects through existing financing channels, with a focus on preparing for projects by 2027. Simultaneously, the US is also paying attention to Brazil's rare earth resources. Brazil holds the world's second-largest rare earth reserves, approximately 21 million mt, more than ten times the US reserves. Brazil's first large-scale rare earth mine commenced operations in 2024, making it one of the few projects outside Asia capable of producing dysprosium, terbium, neodymium, and praseodymium.

Corporate Cooperation and Strategic Layout

USA Rare Earth announced the acquisition of UK-based metals and alloys producer Less Common Metals (LCM) for $100 million in cash and approximately 6.7 million shares to strengthen its position in the rare earth supply chain. Noveon Magnetics, the only US manufacturer of sintered rare earth magnets, signed a memorandum of understanding with Lynas Rare Earths aimed at establishing a scalable domestic rare earth permanent magnet supply chain. The collaboration scope includes supplying light and heavy rare earth materials, developing metal, alloy, and magnet production to provide high performance magnets for the defense, automotive, and industrial sectors. Pakistan signed two memoranda of understanding with USSM to jointly develop Pakistan's critical mineral value chain, covering activities from exploration to refinery construction, and launched a $500 million partnership framework.

Global Exploration and Development Progress

Brazilian states are actively advancing plans to build rare earth processing plants. The São Paulo state government, through the Institute for Technological Research (IPT), initiated the installation of the first equipment for its inaugural rare earth and critical mineral processing plant. The facility will be capable of simulating, testing, and validating separation and purification technologies, reducing dependence on external suppliers. In Namibia, Aldoro Resources has commenced exploration activities at its Omuronga project, targeting heavy rare earth elements through its initial drilling program. Preliminary investigations have identified promising geochemical anomalies, indicating the potential presence of a buried carbonate system.