Regional policies are being intensively implemented, driving the global rare earth supply chain toward diversification [SMM Rare Earth Overseas Weekly Review]

I. Asia: India and Malaysia Advance Localization Strategies

India Approves Incentive Plan for Rare Earth Magnets

The Indian Cabinet officially passed a 72.8 billion rupee (approximately $815 million) industrial support plan for the rare earth permanent magnet sector on November 26. The plan aims to select five enterprises through competitive tender to build an annual capacity of 6,000 mt sintered NdFeB magnet entire industry chain. This initiative covers the complete value chain from rare earth oxides to metals, alloys, and finished magnets, including 7.5 billion rupees in capital subsidies and 64.5 billion rupees in sales incentives, with a duration of seven years (including a two-year construction period). The move is intended to meet domestic demand from sectors such as EVs and renewable energy, with India's magnet consumption expected to double by 2030. At the enterprise level, India's Lohum plans to invest 50 billion rupees to build a plant in Uttar Pradesh, targeting an annual capacity of 2,000 mt by 2028; the state-owned Indian Rare Earths Ltd. (IREL) is also advancing the construction of a magnet plant in Andhra Pradesh.

Malaysia Acknowledges Technological Dependency Challenges

Malaysia's Acting Minister of Natural Resources and Environmental Sustainability, Zahari, pointed out that although the country's rare earth reserves reach 16.1 million mt (ranking third globally), 94% of the resources are located in permanent forest reserves, and mining and refining technologies heavily rely on foreign countries. Currently, only the Kenering project in Perak is being developed by a Malaysia-China joint venture relying on Chinese technology, while Lynas's processing plant in Pahang faces controversy over radioactive waste. Malaysia explicitly needs to break through technological bottlenecks through international cooperation, but China's export restrictions on rare earth separation technology intensify its challenges.

II. Europe: Supply Chain Autonomy Plan Is Expected to Be Unveiled

The European Commission plans to announce a key raw materials supply chain autonomy plan on December 3. Core measures include: joint procurement of critical minerals such as rare earths, accelerating local production and recycling, and establishing a European Critical Raw Materials Centre, modeled after Japan's JOGMEC to create a reserve and supply hub. Media criticism once again targeted China's slow issuance of export licenses, claiming that its requirement for commercial information disclosure could jeopardize corporate secrets.

III. North America: US Increases Investment in Domestic Capacity

The US Department of Defense provided a $620 million loan to magnet producer Vulcan Elements and an $80 million loan to recycling enterprise ReElement Technologies for expanding rare earth separation and magnet capacity. Vulcan plans to construct a magnet factory with an annual production capacity of 10,000 mt, focusing on the recycling sector. Separately, the US Department of the Army awarded Element USA $29.9 million to extract gallium and scandium from industrial scrap, reducing reliance on China. American Rare Earths (ARE) updated the resource estimate for the Halleck Creek project in Wyoming, reporting an ore reserve of 547.5 million mt, and received $7.1 million in support from the state government, with a pre-feasibility study expected to commence in 2025.

IV.Kazakhstan: Strengthening Its Role as an Emerging Supplier

Kazakhstan is accelerating foreign investment and cooperation by leveraging the newly discovered super-large deposit in Karaganda Oblast (reserves of 20 million mt, containing neodymium, cerium, yttrium, etc.). State-owned Tau-Ken Samruk is conducting joint exploration with US-based Cove Capital and has signed technical agreements with Japan's JOGMEC and France's BRGM, aiming to build a complete industry chain from mining to processing. Meanwhile, the country's parliament has strengthened export regulations to prevent undervaluation of resources, highlighting its intent to enhance its strategic position in the rare earth market.