Highlights

• U.S. and Australia unveiled an $8.5B critical minerals pact with price floors, while the U.S. Export-Import Bank committed $2.2B to Australian projects—marking unprecedented allied funding to counter China's dominance.
• The first-ever U.S.-Japan rare earth alliance pairs REAlloys with JOGMEC for tech transfer and secure supply.
• The Pensana-VAC deal links Angola mines to U.S. magnet plants in emerging mine-to-magnet partnerships.
• Western buyers now pay 15-30% premiums for non-China supply under long-term contracts with floor prices, establishing a bifurcated market as B investment funds target African and emerging market projects.

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As Rare Earth Exchanges (REEx) reported this week, the U.S. and Allies Commit Billions, Set Price Floors: The United States and Australia advanced a landmark critical minerals pact, unveiling a pipeline of up to $8.5 billion in projects and introducing a minimum price floor for rare earths – a long-sought boost for non-China suppliers. The U.S. Export-Import Bank followed with $2.2 billion in financing LOIs to Australian rare earth and critical mineral developers, underscoring an unprecedented wave of allied funding.

First U.S.–Japan Rare Earth Alliance: In a first-of-its-kind partnership, as reported (opens in a new tab) by China’s Shanghai Metals Market, U.S. rare earth firm REAlloys Inc (opens in a new tab). and Japan’s government agency JOGMEC (opens in a new tab) signed a strategic MOU to co-develop magnet technology and ensure a stable offtake supply outside China. Japan will transfer advanced separation and magnet manufacturing tech to North America while REAlloys allocates part of its output (Scandium, Yttrium) to Japan – securing both nations’ defense and high-tech needs.

Mine-to-Magnet Deals Bridge Africa and the West: UK-based Pensana Plc PNSPF (opens in a new tab) (OTCMKTS)  inked a supply MOU with German magnet maker Vacuumschmelze (opens in a new tab) (VAC) to feed Angola’s Longonjo rare earth output into a new South Carolina magnet plant. This five-year renewable deal (volumes TBD) would deliver mixed rare earth carbonate from Angola to VAC’s U.S. facility, complementing a prior Pensana agreement to supply U.S.-based ReElement Technologies (opens in a new tab) (20,000 tpa). Meanwhile, Western investors launched a $5 billion critical minerals fund (Orion CMC (opens in a new tab)) with $1.8 billion initial capital to back projects in Africa and other emerging markets, accelerating non-China supply chains.

As reported by REEx on October 24, 2025,  Aclara Resources, (opens in a new tab) backed by a couple of large South American mining companies, plans to build a $277 million heavy rare earth separation facility in Louisiana by 2027. Backed by $46.4 million in state incentives and sourcing ionic-clay feedstock from Brazil and Chile, they target production mid-2028. The project aims to annually produce 200 tonnes of dysprosium, 30 tonnes of terbium, and 1,400 tonnes of NdPr—potentially supplying up to 75% of U.S. EV-related Dy/Tb demand by 2028. While the integrated model offers strategic promise in reducing dependence on China, execution risks loom large: delayed mine feed, unproven scaling of ionic-clay processing, and assumptions about market demand and downstream readiness may complicate its realization.

Orion Resource Partners LP (opens in a new tab) is a global investment firm specializing in the metals and materials critical to sustainable economic growth and energy transition, with more than $8 billion of assets under management and a team of more than 80 professionals across five global offices. Orion has successfully invested across the metals and materials value chain for over a decade, operating complementary investment strategies spanning the full liquidity spectrum, finding and capturing opportunities driven by the long-term trends of global decarbonization, the constrained supply of critical resources, and advancements in industrial technologies.

United States: Massive Funding & Alliances to Counter China

Allied Financing Blitz – $8.5B U.S.–Australia Pact

The week kicked off with a White House summit where President Trump and Australia’s PM Albanese signed a critical minerals framework aimed at breaking China’s grip. Each country will invest $1 billion in rare earth mining and processing projects over six months, and importantly set a price floor for key minerals – a move Western miners have advocated. To reinforce the deal, the U.S. Export-Import Bank (EXIM) announced (opens in a new tab) seven letters of interest totaling $2.2 billion for Australian projects (Arafura Rare Earths, Northern Minerals, VHM, and others), spanning rare earths, graphite, magnesium, and more. To identify the strength of the Australian players, REEx suggests investors review the Light/Heavy Rare Earth Element Project/Deposit Rankings.

These commitments, coordinated with Export Finance Australia (opens in a new tab), will underwrite new mines and refineries that feed America’s defense and tech supply chains. The U.S. also disclosed plans to fund a gallium refinery in Australia as part of this push, responding to China’s export ban on that critical metal. In short, Washington is backing its rhetoric with cash – building out an “America First” critical minerals base through big-ticket partnerships and export-credit muscle.

REAlloys and JOGMEC form a partnership – U.S.–Japan Tech Transfer

Another milestone came as Japan’s JOGMEC (a METI agency) engaged with a U.S. rare earth company for the first time. REAlloys Inc. (which is merging (opens in a new tab) with Blackboxstocks) signed an MOU with JOGMEC to jointly develop rare earth supply chains and magnet production. Under the pact, JOGMEC will facilitate the licensing of advanced Japanese separation and NdFeB magnet technology to REAlloys’ planned facilities in Saskatchewan (processing) and Ohio (alloy/magnet manufacturing). The collaboration also envisions JOGMEC-backed financing for REAlloys’ upstream and midstream projects and structured offtake agreements ensuring Japanese industries access to non-Chinese magnet material.

In exchange, REAlloys will reserve a portion of its future output – including heavy rare earth-rich feed from its Hoidas Lake deposit – for Japanese end-users (e.g., scandium, yttrium), while guaranteeing U.S. defense programs their supply per Shanghai Metals Market. Executives hailed this as a win-win: Japan gains a secure allied source, and the U.S. gains Japanese technical prowess and investment. This U.S.–Japan rare earth alliance highlights deeper geopolitical cooperation to build a China-free magnet supply chain.

Notably, as REEx reported, domestic U.S. developments also continued: startup Phoenix Tailings opened the first fully U.S.-based rare earth metal facility in New Hampshire this week, a 200 TPY metallization plant using zero Chinese inputs, to supply magnet manufacturers. While not a financing deal, it underscores the tangible progress in U.S. capability.

Europe/UK: Downstream Deals Tie into Western Supply Chain

Pensana & VAC – Linking Angola to U.S. Magnets

In Europe, a significant downstream partnership was announced involving UK-based Pensana and Germany's Vacuumschmelze (VAC). On Oct 22, Pensana signed an MOU with VAC to establish a “mine-to-magnet” supply chain to the United States. Under the agreement, Pensana’s upcoming Longonjo rare earth mine in Angola will supply mixed rare earth carbonate to VAC’s new eVAC magnet plant in South Carolina.

The initial term is five years (renewable) with pricing and volumes to be finalized. This deal follows Pensana’s earlier offtake understanding with U.S. firm ReElement (for 20,000 tpa of Longonjo’s output), and together they aim to feed U.S. magnet production once Longonjo starts up in 2027. VAC’s U.S. facility – a JV backed by U.S. defense investment – will use the Angolan feed to make NdFeB magnets on American soil, reducing dependence on Chinese materials. The Pensana–VAC tie-up illustrates Europe’s companies actively teaming with Anglo-American partners to integrate African resources into Western supply chains for EV and defense magnets.

Aside from this, no other major Europe-specific rare earth deals were reported during the week, though EU officials remained focused on mitigating China’s export curbs and supporting domestic refining projects. (For instance, France’s Caremag rare earth refinery secured a €110 million JOGMEC investment earlier this year – a model of Japan-Europe cooperation highlighted by JOGMEC’s new U.S. foray.)

Canada: Laying Groundwork with Government Support

No new Canadian rare earth deals were publicly announced in the Oct 20–24 period. However, Ottawa’s support for critical minerals projects remains strong. Ongoing initiatives – such as Export Development Canada’s $250 million (opens in a new tab) financing interest in the proposed Wicheeda REE mine and talks on critical minerals infrastructure funding – underscore the Canadian government’s commitment to developing domestic rare earth capacity as REEx has chronicled.

Canadian officials also voiced optimism at international forums about reducing G7 reliance on Chinese supply. Several Canadian-linked juniors continued to seek capital (e.g. Search Minerals, now part of USA Rare Earth, advancing funding plans), buoyed by the sector’s momentum as REEx points out last week. In short, while no fresh deals closed this week, Canada is steadily greasing the wheels – via export credit agencies, strategic funds, and policy support – to ensure its rich rare earth deposits can be tapped in the near future.

Asia Focus: Japan Leads Tech Alliances; India Boosts Self-Reliance

Japan – Alliance Strategy in Action

Japan’s rare earth strategy translated into concrete action this week through the REAlloys–JOGMEC alliance noted above. This marks a significant broadening of Japan’s long-running efforts (which have included funding Australia’s Lynas and a new French refinery) to secure non-Chinese rare earth supply. Beyond that MOU, Japanese officials continued high-level coordination with allies.

At international meetings, Tokyo reinforced its stance against China’s export curbs and pushed for unity in diversifying supply. The JOGMEC deal (opens in a new tab) itself was heralded as “Japan’s commitment to building critical mineral partnerships with trusted allies”, extending its technical leadership to support a more resilient global supply chain. In sum, Japan moved from talk to execution – leveraging its technology and capital to bolster allied rare earth production and ensure its manufacturers have secure access to magnet materials outside China.

India – Policy Moves for Supply Security

India did not sign any new international rare earth agreements this week, but it unveiled policy measures to reduce dependence on Chinese imports. A senior defense official announced India’s plan to create a strategic reserve of critical minerals (including rare earths) to buffer any supply shocks. In a first public confirmation, he noted the stockpile would ensure key defense industries (missiles, radars, etc.) aren’t crippled by shortages.

Additionally, India’s government is streamlining domestic mining: it designated rare earth mines as “strategic projects” to fast-track environmental clearances and development, as cited by Mining.com last month. These steps come on top of India’s ongoing efforts – such as negotiating new trade deals with Chile and Peru to secure rare earth access and partnering with Australia – aimed at diversifying supply sources, per REEx last week.

The week’s policy push signals New Delhi’s accelerating drive to build internal capacity (including recycling programs funded by a ₹15 billion incentive) and shield itself from geopolitical resource risks.

China – No Deals, Just Defense of Export Curbs

China itself stayed out of any overseas rare earth investments or acquisitions this week. Instead, Beijing remained focused on tightening and defending its export controls. Following its Oct 9 move to expand rare earth export licenses (adding five heavy REEs like holmium and thulium to the restricted list). Chinese officials spent this week rebutting U.S. criticism of those curbs. The Commerce Ministry insisted the new rules – taking effect Nov 8 – are “consistent with international practice” and accused Washington of stoking panic about supply for political gain reported Reuters (opens in a new tab). While the propaganda battle continued, there were no new Chinese supply deals inked.

In fact, Western sources noted that China’s tighter grip (now even requiring licenses for foreign firms using Chinese RE materials) is only galvanizing more non-China partnerships. In short, Beijing’s stance this week was a reminder of why so many countries are scrambling to develop alternative rare earth sources. (There was speculation about a potential China-Malaysia JV for a processing plant in the future, but no confirmation yet.)

Note REEx this week reported on a Malaysian-American venture now positioning to bring value-added mining to Malaysia. See “DTEC Mineral and Metal Technology to Bring Advanced Rare Earth Separation from Malaysia to the United States.”

Africa & Others: Resource Tie-Ins and New Investment Vehicles

Angola & Africa – Major Offtake MOU

As highlighted, Angola’s flagship rare earth project, Longonjo, moved closer to the Western supply chain thanks to Pensana’s new MOU with VAC cited above. Although signed by UK/EU firms, this deal squarely involves Africa – Longonjo is set to become one of the world’s largest REE producers (~20,000 tpa MREC initially), and now a significant share of that could flow to U.S. magnet production.

It follows another agreement allocating Longonjo output to a U.S. processor, and together they illustrate how African mines are being integrated into diversified supply networks. Beyond Angola, no other African rare earth deals were announced during the week. However, the continent’s importance in critical minerals was underscored by allied financing initiatives, notably the U.S.-backed Orion Critical Minerals Consortium, launched with $1.8 billion to invest in “near-term production” projects in emerging markets like Africa.

Backed by U.S. DFC, private equity (Orion), and Gulf funds (UAE’s ADQ), this platform seeks to deploy up to $5 billion into projects for rare earths and other critical minerals, prioritizing assets that can quickly supply Western demand—see Ecofin Agency (opens in a new tab). Such moves could channel substantial capital into African rare-earth ventures (e.g., projects in Tanzania, Burundi, South Africa, and Malawi) as the West eyes Africa’s roughly 30% share of global critical mineral reserves.  REEx has interacted with ministers or their staff of other nations interested in partnering with the United States including Nigeria, Niger and even Burkina Faso.

Middle East – Interest but No New Deals

The Middle East did not report any rare earth-specific deals this week. Nonetheless, regional players remained active in the background. In Saudi Arabia, officials at industry events reiterated plans to deploy sovereign wealth funds into mining and critical minerals globally (as seen during London’s LME Week). Earlier in the year, Saudi mining giant Ma’aden signed an MoU with U.S. MP Materials to collaborate from mining to magnets, signaling the Gulf’s intent to participate in this sector.

Similarly, the UAE’s investment in Orion’s new consortium shows Middle Eastern capital positioning to co-invest in rare earth supply chains. While no fresh partnerships emerged in October 20–24, the region’s interest suggests that, as opportunities in Africa or Asia arise, Gulf funding could quickly become involved.

Ex-China Market Trends: Long-Term Contracts & Price Premiums

The deals and initiatives this week reinforce a new normal in rare earth markets – one where non-Chinese supply is secured through long-term contracts with innovative pricing terms. A hallmark is the use of floor prices and premiums to underwrite projects outside China. For example, the U.S.–Australia agreement will set minimum pricing for critical minerals, effectively guaranteeing miners a baseline revenue and encouraging investment.

Similarly, as REEx reported in July, the U.S. Department of Defense’s recent magnet supply contract with MP Materials reportedly includes a price floor of $110/kg for NdPr oxide, protecting the producer from price crashes. Offtake agreements now commonly span 5–10+ years and feature provisions like take-or-pay commitments, indexed pricing to input costs, and even upstream equity stakes or prepayments by end-users wordpress-1542803-6000058.cloudwaysapps.com. Western buyers have become willing to pay a 15–30% premium for rare earth products made outside China in exchange for security of supply. See REEx.

This bifurcated market – with higher “ex-China” prices – is now well established, to the point that industry analysts launched dedicated non-China rare-earth price indices in 2025, placing a premium on supply chain security.  In short, the flurry of deals outside China is characterized by partnerships and pricing structures designed to give producers the stability needed to launch new mines and refineries. As one industry insider put it to REEx, “there is no going back” from this paradigm – these premiums and long-term alliances are certainly contributing to the acceleration of the build-out of a mine-to-magnet ecosystem independent of China.