Highlights
- Major players in the U.S., including MP Materials Chief Communications Officer Matt Slousther, went on the record for Congress about the urgent need for rare earth and critical mineral supply chain resilience.
- Major Saudi-U.S. venture: MP Materials, the U.S. Department of Defense, and Saudi Arabia’s Ma’aden formed a joint venture to build a rare earth refinery in Saudi Arabia – marking a significant Middle East entry into rare earth processing. This deal, according to Rare Earth Exchanges (REEx), raises more questions than it answers. Why outsource refining from an America First perspective?
- U.S. supply chain strides: A 10,000 t/year magnet plant (Vulcan Elements) was confirmed for North Carolina (backed by over $600 million in U.S. loans), and a new ERI–ReElement partnership will recycle end-of-life magnets into refined rare earth oxides domestically. And REEx suggests that investors read the fine print.
- Strategic alliances in Asia: India moved to nearly triple funding for rare-earth magnet manufacturing incentives to ₹70 billion ($788 million) pe [REEx report]. Pakistan, meanwhile, shipped its first rare earth minerals to the U.S. under a new $500 million agreement. While this deal was announced earlier, PCMA confirmed it recently (opens in a new tab).
- Europe’s cautious progress: Belgium’s Solvay secured deals to supply rare earth oxides from its French plant to two U.S. magnet makers, highlighting transatlantic cooperation as Europe seeks to catch up. Solvay noted U.S. customers are quicker to sign contracts – thanks to robust American support – whereas European buyers remain hesitant pending greater EU incentives.
- Ex-China market dynamics: China’s export curbs on rare earths are temporarily eased but not eliminated, keeping heavy rare earths tightly controlled as REEx reminds readers. Western buyers continue paying 15–30% price premiums for non-Chinese rare earth supply, with long-term contracts featuring protective terms like price floors (e.g., ~$110/kg NdPr oxide in a U.S. defense deal) and take-or-pay clauses to ensure supply security.
Table of Contents
North America
U.S. Magnet Plant and Supply Chain Expansion
The United States advanced plans for a vertically integrated rare earth magnet supply chain. Vulcan Elements – a North Carolina-based startup – selected Benson, NC (opens in a new tab) as the site for a $918 million neodymium magnet factory. The facility will span 1 million sq. ft., target 10,000 metric tons per year of NdFeB magnet production, and create about 1,000 jobs in engineering and manufacturing.
This project follows Vulcan’s $1.4 billion public-private partnership announced earlier in November, backed by a $620 million low-interest Department of Defense loan and $50 million in CHIPS Act equity funding, alongside ~$550 million from private investors.
Vulcan will produce sintered NdFeB magnets for use in EV motors, electronics, and defense systems, while partner ReElement Technologies expands recycling and refining capacity to supply Vulcan with domestic rare earth feedstock from recycled magnets.
These investments aim to establish an end-to-end U.S. magnet supply chain entirely outside China.
Recycling Partnership to Process End-of-Life Magnets
In the recycling segment, ERI – the largest U.S. electronics recycler – inked a strategic agreement with ReElement Technologies (an American rare-earth refining innovator) to process end-of-life magnets.
Under this commercial partnership, ERI will use its nationwide e-waste collection network and facilities to aggregate and pre-process discarded magnets, while ReElement will refine the recovered material into high-purity rare earth oxides.
The arrangement, if properly executed, creates a domestic, circular supply of critical rare earth elements by transforming recycled electronics waste into new magnet-grade materials. This will bolster U.S. supply chains for magnet inputs used in mobility, defense, and advanced tech applications.
ReElement has already begun pilot production – shipping 99.99% pure rare earth oxides to qualified defense and commercial customers – and is scaling up output at its Indiana facilities.
The ERI–ReElement collaboration exemplifies how recycling is being leveraged alongside mining to secure rare earth supplies in North America.
Testimony to the U.S. Congress
A historic congressional hearing brought rare alignment between industry, national security officials, and lawmakers, declaring that America is dangerously behind in rare earths and lithium after China executed a deliberate 30-year strategy of subsidies, predatory pricing, acquisitions, and export controls that wiped out U.S. refining and triggered factory shutdowns within days.
MP Materials testified as both a symbol of resilience—with $2 billion invested, a Pentagon-backed magnet plant, and a decade-long offtake agreement with GM and Apple—and a reminder of how exposed the nation remains.
Lithium Americas delivered the same warning on lithium, noting China’s 70%–80% dominance in processing and batteries, the fragile status of Thacker Pass as the only major U.S. project under construction, and the crippling effect of 10-year permitting timelines.
The hearing produced rare bipartisan consensus: the U.S. must shorten permitting, counter predatory pricing, rebuild domestic refining and magnet-making, reward U.S.-origin minerals, and forge alliances to break China’s chokehold.
The record is clear—China’s dominance was intentional, the U.S. moved too slowly, and public–private partnerships, now backed by the Pentagon as a direct investor, are essential to restoring industrial and economic sovereignty.
Europe
Transatlantic Agreements and Processing Ramps
Europe saw incremental progress in rare earth supply efforts, often in collaboration with North America.
Belgian chemicals group Solvay announced it has agreed to supply rare earth oxides to two U.S. magnet manufacturers as it ramps up its new separation plant in La Rochelle, France.
One deal will provide Texas-based Noveon Magnetics with neodymium-praseodymium (NdPr) as well as dysprosium and terbium oxides – the critical ingredients for high-performance NdFeB magnets.
The other agreement will supply samarium oxide to Permag (a U.S. Sm–Co magnet producer), with conversion to metal handled by Britain’s Less Common Metals.
These contracts support Solvay’s initial production run and signal confidence from U.S. customers in European refining capability.
Notably, Solvay’s CEO highlighted a disparity in market support (opens in a new tab): American customers are “ready to sign” commercial rare earth contracts now, thanks to strong U.S. government incentives, whereas European firms have been slower to commit. This underscores Europe’s continued reliance on policy development (and possibly EU support mechanisms) to spur comparable supply-chain investment.
While Europe has launched initiatives (like the European Raw Materials Alliance and magnet projects in Estonia and elsewhere), industry voices warn that without faster action – such as funding or offtake guarantees – Europe risks falling behind the U.S. in establishing independent rare earth magnet production.
Russia
Domestic Extraction Push Amid Isolation
Russia is turning inward to develop its rare earth resources, as geopolitical rifts limit international collaboration. President Vladimir Putin ordered his cabinet to draft a comprehensive road map by December 1 for expanding rare earth mineral extraction in Russia, which he announced (opens in a new tab) a couple of weeks ago.
The directive, issued in mid-November, aims to exploit Russia’s sizable rare earth reserves (estimated at ~3.8 million tonnes) and improve transport links to Asian markets.
However, Western sanctions and the ongoing war in Ukraine constrain Russia’s rare earth ambitions on the global stage. Putin’s decree follows an April U.S.–Ukraine deal granting the U.S. access to Ukrainian critical minerals – a partnership that Moscow viewed warily.
The Kremlin even signaled interest in partnering with the U.S. on rare earth projects, but any such prospects have been stymied by the lack of progress toward ending the Ukraine conflict.
For now, Russia’s focus is on self-reliance: building domestic mining and processing capacity (likely with Chinese or other non-Western help) to reduce its dependence on Western technologies, while its rare earths remain largely untapped due to political and economic headwinds.
South America
Quiet Week, with Earlier Financing in Brazil
No major rare earth deals were announced in South America during the week of Nov 14–21. The region’s most notable recent development came earlier in the month: the U.S. International Development Finance Corp. approved up to $465 million in financing to expand Brazil’s Serra Verde rare earth mine, cited in REEx.
Serra Verde hosts one of the largest rare earth reserves outside China, and this funding will support scaling up its production of NdPr-rich monazite deposits. The U.S.-backed investment in Brazil underscores ongoing efforts to bolster non-Chinese rare earth supply chains in South America.
Beyond Brazil, other South American rare earth projects (in countries like Argentina or Chile) saw no new deals this week, reflecting a relatively quiet period as projects continue advancing through studies and permitting. Stakeholders note that Western financing and offtake commitments – like the DFC’s support for Serra Verde – remain key to unlocking the region’s potential in the rare earth sector.
Africa & Middle East
Saudi Arabia’s Refinery Joint Venture
A landmark Middle Eastern partnership was finalized this week. Saudi Arabia’s mining champion Ma’aden signed a joint venture with U.S.-based MP Materials (and the U.S. Department of Defense) to develop a major rare earth refinery in the Kingdom.
Under the binding agreement, Saudi Arabia will hold a 51% stake in the project through Ma’aden, while MP Materials and the U.S. government (via the Pentagon’s investment arm) share the remaining 49%.
The planned facility will process rare earth concentrates into separated oxides of both “light” and “heavy” rare earths – an advanced step in the supply chain that China currently dominates.
Feedstock will come from ore mined in Saudi Arabia and potentially other sources, and the refined oxides (including critical heavy elements like dysprosium and terbium) will be used in manufacturing high-performance magnets and military/industrial components in Saudi Arabia and the U.S.
This venture, announced during a visit by the Saudi crown prince to Washington, is seen as a win-win: it helps Riyadh’s Vision 2030 plan to diversify into critical minerals, while aiding Washington’s goal of building alternative rare earth processing capacity outside China.
Industry analysts noted the deal carries minimal financial risk for MP (given backing by Saudi and U.S. partners) and could pave the way for MP to secure more downstream magnet supply deals in the region.
MP Materials also indicated it is in discussions to support magnet manufacturing in Saudi Arabia, which would further integrate the Kingdom into the rare earth magnet value chain. REEx suggested the announcement raises more questions than it answers.
African Project Updates
Elsewhere in Africa, no new deal closures were reported during the week, but progress continues on key rare earth projects. Nigerian media announced the commencement of the Hasetins Commodities refining facility.
In Angola, Pensana’s Longonjo rare earth mine announced a major drill program to boost Longonjo resources to over 1 billion tonnes (opens in a new tab).
Meanwhile, in Kenya, the massive Mrima Hill deposit – estimated to contain ~$62 billion worth of rare earth minerals – is drawing intense interest from both Western and Chinese entities but more data is needed.
However, Kenyan authorities have yet to strike any extraction deal, amid local sensitivities and regulatory hurdles. Across Africa, governments are keen to attract investment for their critical mineral resources, but the timeline from interest to concrete agreements remains slow.
Stakeholders note that sustained Western engagement (through financing, partnerships, and technical assistance) is crucial if African rare earth projects are to materialize and provide diversified supply outside of China.
Asia (Non-China)
Japan–U.S. High-Tech Partnership
Japan further solidified its role in allied rare earth initiatives. In a groundbreaking move, Japan’s state-backed JOGMEC agency signed an MOU with U.S.-based REAlloys Inc., marking JOGMEC’s first-ever partnership with a U.S. rare earth company.
This strategic memorandum will facilitate the transfer of Japanese rare earth separation technology and magnet manufacturing know-how to the U.S. partner and coordinate investment to expand non-Chinese supply chains.
Under the agreement, REAlloys and JOGMEC will collaborate to develop and qualify high-performance rare earth materials and magnets, with an eye toward supporting the U.S.–Japan alliance’s advanced manufacturing and defense needs.
JOGMEC’s decades of experience (it famously helped Lynas of Australia rise with $250M in funding a decade ago) and Japan’s cutting-edge processing expertise will be leveraged to boost U.S. capacity.
The deal aligns with a broader U.S.–Japan critical minerals framework that aims to finance new projects and ensure the allied nations' share offtake from them. Analysts describe the JOGMEC–REAlloys tie-up as a “fusion of strengths” – combining Japanese technology and capital with U.S. resource potential – and a significant step toward supply chain independence from China.
India Triples Magnet Industry Incentives
India is ramping up support to build its own rare earth magnet industry. The Indian government approved a plan to nearly triple the funding for its Production-Linked Incentive (PLI) scheme on rare earth magnets to ₹70 billion (approximately $788 million) per REEx.
This boosted incentive program (up from a previous ₹25 billion allocation) is intended to attract global magnet manufacturers to set up factories in India by offsetting capital and operating costs.
The move comes as India recognizes the strategic importance of permanent magnets for electric vehicles, wind turbines, and defense systems, and the risk of heavy reliance on imported Chinese magnets.
With the expanded PLI, India is actively courting Western and Japanese magnet makers – offering subsidies, potentially cheap financing, and expedited permits – to establish joint ventures or local production that can utilize India’s own rare earths (the country has modest rare earth reserves and state-owned firms like IREL in the sector).
This week’s incentive boost reflects India’s broader critical minerals strategy and its aim to emerge as an alternate magnet supply hub in Asia.
Industry observers note that sustained policy support will be key: India’s challenge will be convincing big magnet companies to invest and ensuring consistent rare earth oxide supply for those new plants.
Pakistan’s First Rare Earth Exports to the U.S.
In South Asia, Pakistan entered the rare earth arena with an inaugural shipment of critical minerals to the United States under a new partnership. Officials announced that Pakistan dispatched its first-ever batch of rare earth elements and other minerals to the U.S. as part of a $500 million agreement with U.S. Strategic Metals (USSM).
Not new news but updated announcements, this milestone shipment implements two MoUs signed on Sept 8 between Pakistan’s Frontier Works Organization (a military-run mining entity) and Missouri-based USSM.
According to the agreement, Pakistan will export a mix of minerals including antimony, copper concentrates, and rare earth oxides (notably neodymium and praseodymium).
The deal also outlines plans to develop the full mineral value chain in Pakistan – from exploration to beneficiation to ultimately building a local refining facility.
For Pakistan, which asserts it has trillions of dollars in untapped mineral wealth, this collaboration is a bid to attract foreign investment and technical expertise to its mining sector.
For the U.S., it opens a new source of critical minerals, supporting Washington’s goal to diversify supply chains away from China.
The partnership will initially focus on shipping readily available ores and concentrates (leveraging stockpiles or small-scale mines), while jointly evaluating the feasibility of a polynetallic refinery in Pakistan (wtop.com (opens in a new tab)).
This rare earth “strategic handshake” is seen as a win for U.S.–Pakistan ties and a signal to Beijing, which has historically had influence in Pakistan’s mineral sector, that Pakistan is open to Western critical mineral investment.
Going forward, security and infrastructure challenges (especially in Balochistan, where many resources lie) will need to be managed to realize the full potential of this deal. Critics seek to better understand the details.
New U.S. Critical Mineral MoUs in Southeast Asia
In October, the United States broadened its network of critical mineral partnerships in Southeast Asia during the APEC summit. Washington signed bilateral Memoranda of Understanding with Thailand and Malaysia to deepen cooperation on critical minerals, aiming to eventually develop local rare earth value chains.
These MOUs, while modest in scope, establish a framework for the U.S. and the two Southeast Asian nations to exchange technical knowledge, promote investment, and ensure fair regulatory treatment for mining projects.
Unlike the more concrete U.S.–Australia and U.S.–Japan critical mineral agreements (which include multi-billion-dollar funding commitments and explicit timelines), the Thai and Malaysian accords do not come with immediate funding or offtake guarantees.
Instead, they focus on foundational steps: conducting joint workshops, sharing best practices on mining regulations and environmental standards, and exploring opportunities for U.S. companies to invest in or assist early-stage rare earth projects in those countries.
REEx recently featured one such Malaysian-American company called DTEC MMT.
Both Thailand and Malaysia have shown interest in leveraging their mineral resources – Malaysia, for instance, hosts an existing rare earth processing facility (Lynas’s plant in Kuantan) and is exploring additional refining projects.
The U.S. outreach via these MOUs is largely seen as opening the door for future deals: as Thailand and Malaysia build capacity and identify viable projects, the expectation is that more substantial partnerships (loans, JVs or offtakes) could follow.
In essence, the U.S. is laying diplomatic groundwork in Southeast Asia to ensure it has friendly access to any emerging rare earth supplies there, complementing its deeper alliances with Australia, Japan, and others. Malaysia has expressed concern about ensuring the land is cared for.
China & Global Market Dynamics
Export Curbs: Partial Pause, Continued Tight Control
China’s grip on the rare earth supply chain remains a central factor in market dynamics. In a conciliatory step after recent U.S.–China talks, Beijing suspended the implementation of new rare-earth export controls for one year, issuing temporary export licenses to ease shipments of certain rare-earth products to foreign customers.
This pause (in effect through mid-2026)partly rolls back the extra export permit requirements China introduced in late 2025.
However, it’s important to note that China’s core restrictions are still in place. Exports of the most critical heavy rare earth elements (like dysprosium and terbium) and of finished magnet alloys remain tightly controlled, largely due to their strategic importance in defense and high-tech applications.
As of late November, U.S. and Chinese officials were still negotiating the specifics of the one-year license scheme, and industry experts warn China could re-impose tougher rules at any time, suggests REEx.
In fact, the “truce” on rare earth exports is seen as fragile – a political gesture that could evaporate if relations deteriorate. China continues to dominate at least 85% of global rare earth refining capacity and an even greater share of magnet production.
This means that any Chinese export squeeze (even informal slowdowns) can quickly ripple through global supply. The partial easing of controls has provided some short-term relief to non-Chinese buyers, but heavy rare earth supplies remain scarce outside China, keeping Western governments on high alert to build alternative sources.
Non-Chinese Supply Fetches Premium Prices
Facing China’s enduring dominance, Western buyers are paying steep premiums to secure rare earth materials from new sources. Recent contracts for non-Chinese rare earth oxides have been 15–30% more expensive than equivalent Chinese prices.
This premium reflects both the scarcity of non-Chinese supply and the willingness of U.S. and allied governments to underpin new projects financially.
In fact, many long-term offtake agreements now include unprecedented clauses to protect producers from China’s market leverage. For example, one U.S. defense-related contract set a price floor of about $110/kg for NdPr oxide (for MP Materials) – roughly double the current China domestic price (~$55–60/kg), ensuring the supplier a viable margin even if China lowers its prices.
However, not all companies have this contractual guarantee with the federal government. “Take-or-pay” provisions are also becoming common, obligating buyers to pay for a set volume whether or not they take delivery.
Such terms give emerging producers (in the U.S., Australia, Africa, etc.) confidence to invest in capacity by insulating them against a potential Chinese price war.
On the flip side, Western end-users are effectively paying an “security surcharge” for non-Chinese material. Market analysts note that bifurcation is emerging: a higher-priced rare earth supply chain outside China co-existing with a lower-cost China-dependent stream.
Magnet makers and OEMs in the West are accepting higher input costs in exchange for supply security and geopolitical stability of supply.
Whether these premiums endure long-term may depend on how quickly new mines and plants can bring costs down – and assuming demand growth assumptions remain accurate--but for now, the trend is clear.
Governments are even directly subsidizing some of the gap (through grants, loans, or tax credits) to make non-China rare earth projects economically feasible.
Conclusion
Overall, the past week’s deal-making – from Saudi Arabia to USA – exemplifies this new reality: supply chain security is taking precedence over lowest-cost pricing, reshaping the rare earth market with new pricing models and partnerships outside of China.
But unless critical mineral and rare earth industrial policy becomes a permanent factor in the market, troubling possibilities (price collapse, glut, etc.) remain around the corner.
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