Breakthrough in Domestic Rare Earth Magnet Production in the US
US magnet manufacturer eVAC shipped the first batch of NdFeB permanent magnets from its Sumter plant in South Carolina, marking the first domestic commercial production of rare earth magnets in the US in 25 years. The company, a subsidiary of Germany's Vacuumschmelze, sources raw materials from MP Materials, which operates the Mountain Pass mine in California. The Sumter plant is expected to increase its capacity to 2,000 mt/year by Q1 2026 and plans to expand capacity to six times the current level through collaborations with US rare earth company Ucore and Canada's Aclara, among others.
South Korea's LS Cable & System announced plans to build a rare earth permanent magnet plant in the US to meet demand from sectors such as EVs, aerospace, and wind power. The company is evaluating a site in Chesapeake, Virginia, and emphasized the need for supply chain diversification, noting that China currently accounts for 85% of global rare earth magnet production.
South Korea Advances Technical Cooperation and Resource Strategy
A new generation of NdFeB permanent magnets developed by the Daegu Gyeongbuk Institute of Science and Technology (DGIST) in South Korea reduces the usage of heavy rare earth elements dysprosium and terbium by 80%. The findings were published in the Journal of Materials Research and Technology. Although the technology passed peer review, further validation is required for large-scale application.
A rare metals research center established through cooperation between South Korea and Mongolia opened in Ulaanbaatar on December 12, with a total investment of 9.8 billion won. Equipped with 57 sets of advanced equipment, the center aims to support research on mining, beneficiation, and refining technologies for rare metals in Mongolia.
Accelerating Global Supply Chain Diversification
The Indian Cabinet approved a 72.8 billion rupee (approximately $815 million) incentive scheme for the rare earth permanent magnet industry. The plan aims to establish a sintered NdFeB industry chain with an annual capacity of 6,000 mt through competitive tender, covering the entire process from rare earth oxides to magnets. The scheme includes 7.5 billion rupees in capital subsidies and 64.5 billion rupees in sales incentives over a seven-year period.
Germany's offshore wind industry is exploring India as an alternative supplier of rare earth permanent magnets, targeting a reduction in China's share of permanent magnet supply to 70% by 2030 and further to 50% by 2035.
Advances in Resource Development and Sustainable Technology
Canadian company Aclara Resources announced that its Penco rare earth project in Chile employs a circular mineral recovery process that enables 95% water recycling and generates no tailings. The project is scheduled to begin production in 2028, with an annual capacity of 50 mt of dysprosium and terbium.
US-based Ion Mineral Technologies (IMT) discovered an ion-adsorption rare earth deposit at its Silicon Ridge project in Utah. Preliminary analysis indicates a rare earth grade of 0.27%, higher than the industry average. The company has obtained mining permits and plans to achieve commercial production of critical minerals through an integrated processing plant.
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Policy and International Cooperation Dynamics
Japan's Ministry of Economy, Trade and Industry issued corporate supply chain risk management guidelines, requiring enterprises to assess dependence risks on China and strengthen rare earth reserves. The guidelines recommend ensuring supply through corporate collaboration and accompanying the release of the "Antimonopoly Act" cooperation case collection to address compliance concerns.
The US Department of Defense provided a $620 million loan to magnet producer Vulcan Elements to support its expansion of rare earth separation and magnet capacity, while USA Rare Earth advanced the commissioning time of the Round Top heavy rare earth project in Texas to 2028.
