Multiple Countries Continue to Develop Rare Earth Mineral Resources as the US Increases Financial Support for Existing Rare Earth Producers [SMM Weekly Overseas Rare Earth Review]

US Rare Earth Developments

US rare earth magnet startup Vulcan Elements plans to build a magnet production facility with an annual capacity of 10,000 mt. The plant will focus on recycling magnets and electronic waste. Funding for the plant will consist of a $620 million direct loan from the US Department of Defense, $50 million from the US Department of Commerce, and $550 million in private capital. Vulcan is partnering with ReElement Technologies to process discarded magnets, electronic waste, and mining concentrates into high-purity rare earth oxides. As part of the financing conditions, the US Department of Defense will receive warrants in Vulcan and ReElement, while the US Department of Commerce will receive $50 million worth of equity in Vulcan. In August this year, Vulcan signed an agreement with Energy Fuels to supply Pr-Nd oxide and dysprosium oxide for magnet production, and also entered into an offtake agreement with ReElement for light and heavy rare earth oxides.

US critical mineral producer Energy Fuels stated during its Q3 earnings call that monazite provides it with a structural advantage in terms of rare earth ore supply. The company expects that the two-phase development of its White Mesa rare earth oxide processing plant in Utah will achieve a target annual production of 6,294 mt of Pr-Nd oxide, 80 mt of terbium, and 288 mt of dysprosium by 2028. Energy Fuels currently has an annual monazite supply capability of 40,900 mt, sourced from the Donald project in Australia, the Toliara project in Madagascar, the Bahia project in Brazil, and US chemical producer Chemours. In September this year, the Pr-Nd oxide processed by the company passed all quality assurance tests for use in EV motors.

US magnet producer Noveon Magnetics signed an agreement with South Korea's Kangwon Energy to build a rare earth permanent magnet plant in South Korea with an annual capacity of 2,000 mt. The plant is expected to begin production in 2027, supplying automakers, renewable energy developers, national defense, and electronics manufacturers. Noveon signed supply agreements for heavy and light rare earths with Australia's Lynas Rare Earths in October last year and began supplying magnets to General Motors in July this year.

Canadian rare earth producer Ucore Rare Metals has agreed to supply rare earth oxides, including neodymium, praseodymium, terbium, dysprosium, samarium, and gadolinium, to German magnet producer Vacuumschmelze (VAC) for its new plant in the US. Ucore will supply materials to VAC's South Carolina plant from its planned Louisiana Strategic Metals Complex and its commercial demonstration facility in Ontario, with both parties set to finalise a long-term agreement within nine months.

Australia and Greenland Project Updates

Australia's Lynas Rare Earths reported that total rare earth oxide production for the July-September quarter reached 3,993 mt, up 32% YoY and up 24% QoQ. The company achieved its first shipment of heavy rare earth during this period, producing 9 mt of heavy rare earth. Lynas is scheduled to commence production of samarium in H1 2026, and the expansion work at its heavy rare earth separation plant in Malaysia will begin in December. The company stated that following China's announcement of strengthened rare earth export controls in October, end-user demand increased significantly.

US rare earth developer Critical Metals announced that its Tanbreez rare earth mine project in southern Greenland obtained a key environmental permit, with the mine closure plan report and geochemical verification work approved by Greenland's Environmental Agency for Mineral Resource Activities. The Tanbreez project is estimated to contain resources of 45 million mt, with heavy rare earth accounting for 27% and a net present value of approximately $3 billion.

Amaroq Minerals discovered rare earth mineralization within the Nunarsuit license area in southern Greenland, with samples from the Irua pegmatite belt showing total rare earth oxide grades of 2.31%, comprising heavy rare earth (27%) and magnet rare earth elements (21%). The company plans to conduct drilling verification in 2026.

Russia and India Strategic Planning

Russian President Vladimir Putin has instructed the government cabinet to approve a long-term development roadmap for rare and rare earth metal mining and production by December 1. The Russian government plans to increase annual rare earth metal production to 50,000 mt by 2030 and reduce the import proportion from the current 75% to 45%.

India's Ashwani Magnets announced the official commissioning of India's first domestic rare earth metal plant, with a monthly capacity of 15 mt, capable of meeting 20%-25% of India's neodymium-praseodymium alloy demand. The Indian government plans to expand the incentive scheme for rare earth magnet manufacturing to 70 billion rupees (approximately $788 million) to accelerate the establishment of domestic capacity.

Malaysia Cooperation and Technology Development

The Malaysian government, in collaboration with South Korea's JS Link and Australia's Lynas Rare Earths, is investing 600 million ringgit to build a super magnet manufacturing plant in Pahang, planning a sintering facility with an annual production of 3,000 mt of NdFeB permanent magnets. In May this year, Lynas successfully produced the first batch of heavy rare earth element products at its advanced materials plant in Kuantan, becoming the only producer outside China capable of large-scale production of such materials.

US company Niron Magnetics announced an expansion of its partnership with the City of Satire to establish the first comprehensive production facility focused on producing high-performance iron nitride permanent magnets free of rare earths. The first phase of the project will involve building a 190,000 square foot manufacturing plant, creating 175 full-time jobs.

South Africa Project Financing Progress

London-listed Rainbow Rare Earths reported that its Phalaborwa project in South Africa received $50 million equity support from the US International Development Finance Corporation through TechMet and Ecora Resources. The project produces rare earth elements by processing phosphogypsum waste, eliminating the need for traditional mining, and is expected to be positioned at the low end of the global cost curve. The company plans to complete the final feasibility study in 2026 and achieve commissioning and production in 2027.