Ucore and Sumitomo Partner to Develop Diversified Rare Earth Supply Chain

[SMM Rare Earth Express] Australian heavy mineral producer Iluka Resources released its April-June quarterly report, showing that due to the slower-than-expected capacity ramp-up at the Balranald mine, the company's zircon production dropped 30% YoY to 26,000 mt. However, as zircon prices rebounded from lows, the company drew on inventory to support sales, with zircon sales up 43% YoY. In rare earths business, the construction progress of Iluka's Eneabba rare earth refinery in Western Australia was approaching 60%. The project has a designed annual capacity of 23,000 mt and a total investment budget of A$1.8 billion, of which A$1.1 billion (approximately $770 million) has been invested. It is expected to commence production in mid-2027. Once completed, the refinery will be able to process both light and heavy rare earths, producing key elements for permanent magnetic materials such as neodymium, praseodymium, dysprosium, and terbium, and is expected to enhance Australia's processing capacity in the global rare earth supply chain.

[Pr-Nd oxide fell below the 750,000 CNY/ton mark, making scrap recycling procurement more difficult] Yesterday, affected by fluctuations in futures prices, offers for Pr-Nd oxide in the market pulled back further after the afternoon session. Suppliers, with poor inventory positions, showed low willingness to quote at low prices, while downstream metal plants maintained a strong wait-and-see sentiment, leading to poor Pr-Nd market transactions. In the medium-heavy rare earth sector, downstream demand remained persistently weak, but supplier quotations stayed firm, keeping dysprosium oxide and terbium oxide prices stable.

[SMM Rare Earth Flash] The Swedish government announced that it has elevated the development of rare earth and other critical minerals to the level of national security and formulated a new mining strategy to expedite project approvals, attract investment, and enhance the supply security of critical minerals for Sweden, the EU, and NATO. The Per Geijer rare earth mine near Kiruna, operated by Swedish state-owned miner LKAB, is a key EU project with ore resources of about 1.2 billion mt, containing 2.2 million mt of rare earth oxides. Swedish Deputy Prime Minister and Minister for Energy and Business, Ebba Busch, said the new strategy will expedite planning permits and explore the establishment of a state-owned investment company to support mining development, providing more funding and land security for key projects.