I. Asia Region Dynamics
Vietnam Passes Rare Earth Export Ban
Vietnam's National Assembly passed the amended Law on Geology and Minerals on December 11, classifying rare earths as a national strategic resource and prohibiting the export of rare earth raw ore. The new legislation will take effect on January 1, 2026, requiring that rare earth exploration, mining, and processing activities comply with the national strategic plan, with participation permitted only for government-authorized enterprises. Vietnam's rare earth reserves are approximately 3.5 million mt, ranking sixth globally.
Malaysia Promotes Rare Earth Industry Coordination
Malaysia's Deputy Minister of International Trade and Industry, Liew Chin Tong, emphasized on December 10 the need to strengthen policy coordination between the federal and state governments to comprehensively develop the rare earth industry chain. Malaysia's rare earth reserves are about 16.1 million mt, but 94% of the resources are located in permanent forest reserves, restricting mining. The government plans to promote the construction of downstream processing capacity through incentive mechanisms and international cooperation.
Japan Accelerates Seabed Rare Earth Development
Japan's Minister of Economic Security, Norimi Onoda, announced on December 5 that the country will commence a rare earth exploration drilling project offshore of Minamitorishima in January 2026, aiming to build a rare earth supply system that does not rely on specific countries. This move is seen as a key initiative for Japan to ensure its economic security.
II. North America Supply Chain Layout
US Rare Earth Project Advances Production Timeline
USA Rare Earth has moved forward the commercialization timetable for its Round Top heavy rare earth project in Texas by two years to 2028. The company plans to start its Colorado processing plant in early 2026 and complete the final feasibility study in 2027.
US-Canada Enterprises Sign Supply Agreement
US magnet producer REAlloys signed a five-year rare earth procurement agreement with the Saskatchewan Research Council (SRC) of Canada, with commercial production scheduled to commence in December 2026, targeting an annual capacity of Pr-Nd alloy (400 mt), dysprosium oxide (30 mt), and terbium oxide (15 mt). The project received C$101 million in funding support from the Canadian government.
US Government Supports Critical Minerals Project
Australian mining company Tronox received a combined $6 billion financing intent from the US Export-Import Bank and Export Finance Australia for the construction of a rare earth processing facility in Western Australia, which is planned to produce mixed rare earth carbonate.
III. Europe and Other Regions Progress
Sweden Calls for EU to Strengthen Rare Earth Self-Sufficiency
Mikael Staffas, CEO of Swedish mining company Boliden, pointed out that the EU needs to accelerate the development of its self-sufficiency capability in critical minerals. The European Commission recently approved €3 billion in funding for 25 critical mineral projects to reduce reliance on China's rare earths.
Namibia Rare Earths Project Economic Assessment Released
Namibia Critical Metals announced pre-feasibility study results for the Lofdal heavy rare earth project, with a pre-tax net present value projected to reach $1.25 billion (high-demand scenario), producing 119 mt of dysprosium and 17.8 mt of terbium annually. The project, in collaboration with Japan's JOGMEC, aims to secure long-term supply for Japan.
Lynas Corporation's Stock Price Fluctuations
Driven by the U.S.-Australia critical minerals agreement, Lynas's stock experienced significant volatility this year, rising to a peak in October before pulling back to around $10. The company is accelerating efforts to address supply chain challenges and enhance global competitiveness.
IV. International Cooperation and Capital Trends
U.S.-Australia Sign Critical Minerals Agreement
The United States and Australia signed an agreement in October, planning to jointly invest $3 billion in critical mineral projects, targeting to leverage $53 billion in extractable resource value. The U.S. Department of War is expected to invest in building a gallium refinery with an annual capacity of 100 mt.
China-Malaysia Rare Earth Cooperation Negotiations Continue
China and Malaysia are in early-stage negotiations over rare earth processing projects, with Malaysia's sovereign wealth fund Khazanah potentially partnering with Chinese state-owned enterprises to establish a plant, but both sides still need to resolve issues related to raw material supply and environmental protection regulations.
