Europe and the United States Continue to Strengthen Rare Earth Supply Chain Autonomy, Vietnam Initiates Rare Earth Control [SMM Overseas Rare Earth Weekly Review]

Published: Dec 12, 2025 16:05

Save

This Week's Overseas Rare Earth Developments: Europe and the United States Continued to Strengthen the Autonomy of the Rare Earth Supply Chain, Multiple Parties Explored Cooperation Between Enterprises and Governments, Vietnam Initiated Rare Earth Controls, and Launched Government-Led Development of the Rare Earth Industry Chain.

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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Jan 30, 2026 18:24

Chile Unveils National Critical Minerals Strategy Amid Global Demand Surge

Chile has released its National Critical Minerals Strategy, clearly positioning itself as a stable supplier of minerals. Currently, driven by artificial intelligence, the development of new technologies, and the energy transition, global demand for these critical minerals continues to grow. The announcement of this strategy holds particular significance in the weeks before President Boric leaves office, highlighting Chile’s intention to transition from over-reliance on the copper industry toward adapting to a decarbonized economy and achieving resource diversification. Chile has identified 14 critical minerals, specifically covering copper, lithium, molybdenum, rhenium, cobalt, rare earths, antimony, selenium, tellurium, gold, silver, iron ore, boron, and iodine. Based on Chile’s current position in the global market, these 14 minerals are categorized into three groups: The first category includes copper, lithium, molybdenum, and rhenium. Their respective shares in global supply are 23%, 20.4%, 14.6%, and 46.8%, and other major economies have also designated these minerals as critical. The second category consists of minerals that are currently not produced or only produced in small quantities, including cobalt, rare earths, antimony, selenium, and tellurium. The third category comprises minerals already produced domestically in Chile with the potential to expand their role in the global value chain, such as gold, silver, iron ore, boron, and iodine.

Jan 30, 2026 18:24

Jan 30, 2026 17:16

Overseas Pr-Nd offers surged rapidly, countries accelerated rare earth mine development [SMM Rare Earth Overseas Weekly Review]

This week, overseas prices continued to rise due to multiple factors, and shipments tightened further. Key developments emerged in raw ore mining across the US, Asia, and Latin America. The US government strengthened domestic rare earth capacity through large-scale funding, a Malaysia-France cooperation project achieved substantial progress, Brazil formulated a national rare earth strategy to unlock resource potential, and India considered adjustments to mining policies to enhance extraction efficiency. These measures collectively reflect countries' heightened focus on rare earth supply chain security, though technological, cost, and capacity bottlenecks remain widespread challenges.

Jan 30, 2026 17:16

Jan 30, 2026 10:15

India Mulls Tightening Mineral Rights Auction Policy to Boost Mining Output

Two informed sources revealed that to accelerate mining production, India is considering tightening its mineral rights auction policy to exclude mining enterprises that fail to apply for mining permits long after winning the auction. Official data show that since 2015, the Indian government has auctioned 594 mineral blocks, of which only 82 are in production, accounting for less than 14%. Sources said an internal government audit found that over the past five years, about 50 enterprises had not commenced mining after acquiring blocks, with some even failing to apply for mining permits. The two informed sources declined to be named as they were not authorized to speak. The Indian Ministry of Mines also did not respond to an email request for comment.

Jan 30, 2026 10:15