Highlights
- Global traders like Traxys, Glencore, and Thyssenkrupp play a crucial role in bridging rare earth mines, processors, and end-users across different regions.
- The rare earth trading ecosystem is evolving from an opaque, China-dominated market to a more transparent, globally distributed network of intermediaries.
- Traders provide essential services like offtake agreements, financing, logistics, and market access.
- Traders help develop non-Chinese rare earth supply chains.
Rare earth elements (REEs) have a complex global journey from mine to magnet, and along the way a little-known network of traders and brokers quietly greases the wheels of the supply chain. While mining companies and magnet manufacturers often make headlines, rare earth traders – from giant commodities firms to niche brokers – form the obscure world of intermediaries connecting upstream production to downstream demand. This piece introduces you to that world, mapping the major players across regions and across the supply chain, from mining concentrates and refined oxides to magnet alloys.
Upstream to Midstream: Traders Linking Mines and Refineries
One of the crucial roles traders play is bridging new mines and processing plants with end-users. In a market long dominated by China’s production, Western developers often rely on traders to secure offtake agreements and finance their projects. For example, Australia’s Arafura Rare Earths (opens in a new tab) recently signed a binding 5-year offtake deal with Traxys (opens in a new tab), a Luxembourg-based commodities trader, for 100–300 tonnes per year of neodymium-praseodymium (NdPr) oxide from Arafura’s Nolans project. Traxys will market Arafura’s NdPr to magnet manufacturers that either cannot commit to long-term contracts or don’t meet Arafura’s lender requirements, essentially acting as a intermediary to aggregate smaller buyers. Pricing in this deal is benchmarked to China’s ex-works NdPr price, creating a competitive yet independent sales channel outside China. With this and other off-takes (e.g. with Hyundai and Siemens), Arafura according to one report has now pre-sold about 66% of its planned NdPr output, positioning itself as a major non-Chinese supplier.
In Africa, Rainbow Rare Earths (opens in a new tab) with a mine in Burundi leveraged a trader partnership early on. In 2015, Germany’s Thyssenkrupp Metallurgical Products (opens in a new tab) (part of Thyssenkrupp Materials Services (opens in a new tab)) inked a ten-year agreement (opens in a new tab) to exclusively market 5,000 tons per year of Rainbow’s rare earth concentrate and downstream oxides (like neodymium, praseodymium, lanthanum oxides). This made Thyssenkrupp the sole sales partner for Rainbow’s output, showcasing how a large trading house can provide a sales outlet for a junior miner. More recently in 2019, Northern Minerals (opens in a new tab) of Australia (a heavy rare earth dysprosium producer) also turned to Thyssenkrupp’s trading arm for 100% offtake (opens in a new tab) of its heavy rare earth carbonate from the Browns Range pilot plant. Notably, that deal replaced a prior Chinese buyer, underlining Western traders’ growing role in non-Chinese supply chains. A point we’ll address further later.
As Northern’s CEO put it, the shift to an offtake with Thyssenkrupp aligns with car and component makers “investing further down the chain to secure supply” of critical materials like dysprosium andterbium.
Japan has long understood the value of trading companies in securing upstream supply. In the wake of China’s 2010 rare earth export embargo, Sojitz Corporation (opens in a new tab) – one of Japan’s big trading houses – struck a landmark deal with Australia’s Lynas. Backed by $250 million from Sojitz and JOGMEC (a Japanese state metals agency), the 2010 deal guaranteed Japan over 9,000 tonnes per year of rare earth oxides from Lynas starting in 2013 as cited by Reuters (opens in a new tab). That amounted to nearly one-third of Japan’s demand at the time and was pivotal in reducing Japan’s reliance on Chinese supply. Sojitz’s investment helped Lynas expand its Mt. Weld mine and Malaysian separation plant, illustrating how traders can finance upstream projects in exchange for secure offtake (opens in a new tab). “There is an absolute seriousness in Japan to finding supply,” Lynas’s CEO noted then, as Japan diversified with deals in Australia, Vietnam, India, and elsewhere.
These examples show traders acting at the upstream and midstream stages – negotiating offtake contracts, financing mining or refining projects, and then handling logistics and marketing of rare earth oxides to end-users. By taking on these roles, trading firms help junior producers de-risk their projects and ensure that mined concentrate actually finds its way into magnets, electric motors, and other applications.
Major Global Traders Entering the Rare Earth Arena
The leading lights in commodity trading are increasingly turning their attention to rare earths as strategic materials. Traxys, (opens in a new tab) in particular, has emerged as a key conduit in the rare earth trade. Headquartered in Luxembourg with over 20 offices worldwide, Traxys specializes in sourcing, financing, logistics, and marketing of metals and minerals. With a legacy dating back to its founding in 2003 (merging divisions of Sogem and Considar), Traxys leverages deep relationships across mining, defense, and manufacturing sectors. It handles offtake agreements, coordinates shipping and warehousing, and even provides trade financing and price hedging – services few others in the REE ecosystem can offer, according to Rare Earth Exchanges. In short, Traxys manages the complex supply chains and mitigates risks for clients, making it a one-stop intermediary between rare earth producers and consumers.
Traxys ‘ prominence is now being challenged by a growing field of competitors seizing the opportunity as Western countries “decouple” from Chinese supply, as we reported in this outlet. A number of major commodity houses and newcomers are eyeing rare earths: for instance, Anglo-Swiss Glencore (opens in a new tab) (more famous in base metals) and oil-focused traders like Switzerland-based Gunvor Group Ltd (opens in a new tab). are rumored to be evaluating moves into rare earth trading. Meanwhile, Switzerland-based Mercuria Energy Group (opens in a new tab), traditionally an energy trader, is “inching into” rare earth logistics and trading services per Rare Earth Exchanges– part of a broader trend of energy/metal traders positioning for the EV and green tech boom. Even big oil trader, the Swiss-Dutch Vitol (opens in a new tab) has been hiring metals experts as it considers ventures in critical minerals as picked up by Global Trade Review (opens in a new tab).
Alongside Traxys, a few specialized firms are emerging as rare earth-focused traders or investors. UK-based Argus Rare Earths (opens in a new tab) (an offshoot of Argus Media) and Peak Rare Earths Ltd (opens in a new tab). (an Australian rare earth company) are cited as players expanding their rare earth market services. Investment groups are also involved –London-based Pallinghurst Group (opens in a new tab) (a mining-focused private equity firm) and even U.S. finance giant Apollo Global Management (opens in a new tab) have begun seeding rare earth financing platforms, anticipating a surge in demand for non-Chinese supply. These financiers aren’t trading physical oxides themselves, but by backing new projects and trading mechanisms, they contribute to a budding ecosystem that treats rare earths more like mainstream commodities.
It’s worth noting that Traxys itself has evolved recently: in 2023, it underwent an ownership shake-up, with management increasing its stake and new strategic investors like Optiver (opens in a new tab) (a Dutch market-making firm) coming on board. This infusion of capital and trading expertise underscores how important rare earths and other critical minerals have become – even financial firms known for trading stocks and derivatives see opportunity in these physical commodities. Traxys also has historical ties in the industry; it has roots connected to Umicore (opens in a new tab) and even held a stake in MP Materials (the owner of California’s Mountain Pass mine, formerly Molycorp), embedding it in the U.S.-European rare earth supply chain. Such linkages give Traxys insight and influence spanning from the only U.S. rare earth mine to processors and magnet makers across the West.
The entrance of large trading houses and investors is significant because it brings sophisticated services and capital to a market that has been relatively small and opaque. Rare earth trading has unique challenges – prices are not openly listed on major exchanges, and volumes are relatively small – but as the market value is projected to triple to over $30 billion by 2030 amid the clean energy and defense demand surge, per multiple reports synthesized by the REEx team. These traders are positioning to become the “Goldman Sachs of rare earths”. And let’s not forget Goldman Sachs itself, which just participated in the $1 billion financing alongside JP Morgan and the U.S. government deal with MP Materials.
We are seeing steps toward more transparent pricing (e.g., Argus now publishes price assessments for dozens of rare earth products, and commodity exchanges have mulled REE futures, as we have reported in REEx, as well as greater involvement of sovereign wealth funds and logistics firms in building out rare earth trading infrastructure. REEx itself will start reporting on pricing and contractual data points, all part of a bid to make the entire sector more transparent. Again, the REEx mission is to accelerate the rise of an ex-China rare earth element supply chain.
All of this suggests the rare earth trader’s profile – historically a quiet figure brokering deals behind closed doors – is about to get a lot more prominent. Disruption is here, and REEx is a key part of the unfolding reality.
Regional Hubs and Chinese “Agents” in Disguise
Rare earth trading is a global game, and nearly every region has its key players or emerging brokers:
China
As the source of ~70% of mined rare earths and over 85% of processed REEs, China historically didn’t rely on independent traders – state-owned producers supplied end-users under government quotas. In fact, at one point Chinese authorities required any rare-earth trading companies to have at least ¥50 million (≈$8 million) in registered capital per a 2013 U.S. Geological Survey and Department of Interior report (opens in a new tab), ensuring only large, vetted entities could engage in export trade. In 2021, China consolidated several major firms into the China Rare Earth Group—and other conglomerates–and by mid-2022 this new conglomerate even set up an international trade company to centralize and strengthen China’s role in global rare earth commerce. Based in Ganzhou with ¥1 billion capital, the trading branch is meant to be a “world-class trading firm” for rare earths as cited in Global Times (opens in a new tab). This move signaled that Beijing wants tighter control and coordination of exports, pricing, and supply agreements. In other words, China is both the dominant supplier and, increasingly, its own trader, using scale and integration to protect its strategic resources.
Japan
Japanese industry depends heavily on rare earths for autos, electronics, and wind turbines, and its sogo shosha (general trading companies) have been pivotal in securing supply. We saw how Sojitz was instrumental post-2010. Another big player is Sumitomo Corporation (opens in a new tab), which began importing rare earths in the 1980s and has since been involved in every stage – exploration, development, production, and trading. Sumitomo formed cooperative ties with Chinese refiners early on and also sourced rare earths from places like Kazakhstan and Vietnam (opens in a new tab). In 2023, Sumitomo struck a deal (opens in a new tab) with MP Materials to help sell U.S.-produced rare earth products into Japan, a notable East-West partnership to diversify supply. Toyota Tsusho (opens in a new tab), the trading arm of Toyota, likewise set up ventures such as an Indian processing joint venture (Toyotsu Rare Earths (opens in a new tab)) to tap monazite sources. In essence, Japanese traders act as agents for Japanese industry, funneling non-Chinese rare earth feedstock (whether from Lynas in Australia or joint projects in India, Vietnam, etc.) to Japanese manufacturers. Their deep expertise in minor metals trading and government backing (through agencies like JOGMEC) make them power players in rare earth markets.
Europe
Several European firms trade rare earths, often as part of broader minor metals portfolios. In Germany, TRADIUM GmbH (opens in a new tab) (based in Frankfurt) specializes in rare earths and technology metals, maintaining a large stock of rare earth oxides in its warehouse. TRADIUM acts as an exclusive representative for various suppliers, emphasizing reliable quality and even compliance with EU REACH chemical regulations – critical for European customers. The UK hosts Lipmann Walton & Co (opens in a new tab)., a long-established minor metals trader known for dealing with exotic elements like rhenium. While not a household name, Lipmann’s inclusion in industry reports (for tracking rhenium flows, for example) suggests it also handles rare earth compounds for specialized clients. Another UK entity, Less Common Metals (LCM) (opens in a new tab), operates more in processing than trading – it imports rare earth metals (historically from China) and produces magnet alloys, effectively bridging Chinese supply to Western magnet makers. And of course, Thyssenkrupp Materials Trading (opens in a new tab) (part of the giant Thyssenkrupp group) has shown how a European conglomerate can step in as a major offtake partner and distributor of rare earth materials from new producers (as seen with Rainbow and Northern Minerals deals). European traders often highlight supply chain transparency and ethical sourcing, a selling point as EU manufacturers are sensitive to conflict-free and sustainable sourcing of critical minerals.
North America
The United States and Canada have a few smaller firms that function as rare earth brokers or “agents” for Chinese material. A notable example is Hefa Rare Earth Canada Co. Ltd., (opens in a new tab) based in British Columbia, which has been cited as a source for rare earth price information. Hefa Canada is essentially an overseas arm of a Chinese rare earth supplier, set up to better serve North American buyers (and at one point to help get around Chinese export quotas by positioning inventory offshore). Similarly, companies like Stanford Materials Corp (opens in a new tab). (California) and Stanford Advanced Materials (opens in a new tab) market themselves as global suppliers of rare earth metals and alloys (opens in a new tab), and have been in business since the 1990s. These firms import oxides, metals, and magnets – primarily from Chinese producers – and sell them to U.S. and European end-users in defense, electronics, and research. In effect, they act as Western storefronts for Chinese rare earth output, navigating import logistics, customs, and client relationships in local markets. Industry insiders suggest there are a myriad of intermediaries in the U.S. and EU who quietly handle Chinese rare earth magnet and alloy sales, allowing Chinese producers to reach customers that might prefer dealing with a local company in their own time zone and language.
Middle East & Africa
Dedicated rare earth traders are still nascent in these regions, but interest is growing. Middle Eastern countries, flush with capital, are investing in critical minerals as part of economic diversification – for example, as REEx reported, Saudi Arabia’s mining company Ma’aden is (opens in a new tab) partnering with MP Materials to develop a rare earth processing facility, potentially making the kingdom a future supplier or trading hub. While not traders per se, Gulf sovereign funds could become financiers of trading ventures or stockpiles. The UAE (Dubai in particular) is a global trading crossroads and could emerge as a transit point for rare earth materials moving between Asia, Europe, and Africa. In Africa, which holds promising rare earth deposits from Burundi to Tanzania to South Africa, Chinese buyers currently dominate the procurement of ore and concentrates. However, as Western-aligned projects come online, we may see more Western trading firms sign off-takes (akin to Thyssenkrupp’s with African mines). African governments themselves might also establish marketing entities to get better value for their resources. The Rare Earth Industry Association (REIA), (opens in a new tab) notably founded in Belgium in 2019, included members like Talaxis (the Noble Group unit (opens in a new tab)), Japan’s Material Trading Company (opens in a new tab) (MTC), and even some African-focused ventures nai500.com (opens in a new tab) – a sign that global collaboration is afoot to integrate producers and traders from all corners.
Note the founding members of REIA include:
- Grundfos (Denmark)
- Fujian Changting Golden Dragon Rare-Earth Co. Ltd. (China)
- Brugger Magnet Systems (Germany)
- B&C Speakers (Italy)
- JL Mag Europe (Netherlands)
- Material Trading Company (Japan)
- Japan Society of Newer Metals
- Talaxis (Singapore)
- Mkango Resources (UK)
- RockLink (Germany)
- Institute of Urban Environment (China)
- Carester (France)
Trading Tactics: Stockpiles, Loopholes, and New Markets
Because rare earths have been subject to export controls and geopolitical risk, traders often operate in a shadowy realm of stockpiling and rerouting to keep supply flowing. During China’s past restrictions, some traders amassed inventories of oxides outside China (in bonded warehouses in Singapore, Rotterdam, etc.), which could be tapped if direct exports were cut. In fact, when China recently tightened export licensing for certain heavy rare earths (like dysprosium, terbium, etc.), companies scrambled to buy from firms holding private stockpiles, driving a sharp price spike. One expert noted in late 2024 a “very steep increase in prices to draw down on stockpiles” as buyers sought non-Chinese sources, based on conversations with rare earth traders. This highlights how traders can act as a buffer during crises, releasing inventory to the market (at a hefty profit, no doubt) when new supply can’t be exported from China.
Traders also find loopholes and alternate routes to move material. For instance, even when China imposed export bans on certain critical minerals, intermediaries in third countries have been used to trans-ship products to end destinations. A recent example involved Germanium (a critical semiconductor metal): Belgium emerged as a re-export hub, importing Chinese germanium and then sending it on to the U.S., thus evading a direct China–US export link. By analogy, similar indirect routes could be (and likely are) used for rare earth oxides or alloys – shipping them to friendly intermediary countries or free-trade zones before final delivery. This kind of gray trading requires trusted agents and knowledge of customs codes, but it’s part of thetrader’s toolkit to fulfill contracts even under politicalconstraints.
Finally, rare earth traders are helping to create new markets outside of China. With Western governments pouring money into new rare earth separation plants and magnet factories, traders may set up exchange platforms or consortia to connect these new producers with customers. In fact, REEx itself is part of this push to accelerate an ex-China rare earth element supply chain via transformational transparency. We are seeing early moves like possible attempts to launch rare earth futures or trading desks at major exchanges, and calls (such as by industry commentators) to even open a rare earths trading desk on the London Metal Exchange in the future, as we have proposed. All this would have been unthinkable a decade ago when China’s internal trading rules essentially set the world price. But as John Parkinson, Chief Business Officer of REEx, has stated, “the race is on to build the ‘LME or Goldman Sachs of rare earths’ – a transparent, well-capitalized trading system to support a non-Chinese supply chain.“
An Obscure but Crucial Supply Chain Network
From the outside, the rare earth supply chain might look like a simple pipeline: mines send ore to processors, processors send oxides to magnet makers, and finished magnets go into cars or wind turbines. In reality, that pipeline is cobbled together by traders and brokers, and various specialists, operating behind the scenes. These intermediaries can not only help source and qualify material, but also secure financing, negotiate contracts, manage transport across continents, and even hold inventory to buffer shocks – all to ensure that manufacturers get the REEs they need on time.
These intermediaries operate under all sorts of confidentiality constraints and cannot too often go public. REEx has developed a network of these individuals and because of their expertise and nuanced understanding, we can assure you this sector is anything but simple and straightforward. Almost every deal represents bespoke components.
Yes, the world of rare earth element trading has long been obscure, often intentionally so due to the niche market and past and residual Chinese dominance. But as the industry globalizes, the influence of traders is coming to light.
We now have a better picture of who some of these players are: from big-name firms like Traxys, Glencore, and Thyssenkrupp; to specialist outfits like Talaxis, TRADIUM, and Sumitomo; to quiet agents representing Chinese supply in Western markets. They operate across North America, Europe, Asia, and emerging centers in the Middle East and Africa – truly a globe-spanning network for these critical minerals. If Western governments and industries succeed in building an independent rare earth supply chain, the traders will have been the unsung architects of that success, piecing together the upstream, midstream, and downstream into a coherent whole. That along with the mission of REEx of accelerating the ex-China rare earth element supply chain market. And if geopolitical turmoil strikes again, it may well be the traders who figure out how to keep the rare earths flowing, through creativity and connectivity, in an ever-changing market.
Ultimately, the rare earth trader’s world might remain somewhat obscure to the public (often because confidentiality covenants require so) but its impact is anything but trivial. Next time you hear about a new EV motor factory or a high-tech metal deal, remember that behind those ventures stand the rare earth traders – quietly exchanging phone calls, signing contracts, moving material across borders – to make those ambitious plans a reality. In the rare earth realm, at least for now, they are the indispensable exchange that keeps critical elements moving around the globe.
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