Highlights
- Major investments and partnerships across U.S., Canada, and international markets are diversifying rare earth production and magnet manufacturing.
- Tech giants like Apple and automotive manufacturers like GM are securing domestic rare earth magnet supplies to reduce geopolitical risks.
- Government initiatives, including U.S. Department of Defense investments, are strategically supporting critical minerals development to counter China's dominance.
This week saw a flurry of deals across the global rare earth supply chain, from major project financings to strategic partnerships aimed at strengthening supplies of these critical elements. Activity spanned multiple continents – including the United States, China, Europe, and Asia-Pacific – underscoring worldwide efforts to boost rare earth mining, refining, magnet production, and recycling capacity in order to reduce dependence on any single source (especially China, which still accounts for over 90% of processing).
ProjectInvestments and Financings
U.S. Project Advances: In the United States, NioCorp Developments announced a key step toward developing its Elk Creek critical minerals project in Nebraska. On August 4, the company closed (opens in a new tab) the purchase of three strategic land parcels needed for the planned mine and processing facilities. This land acquisition secures space for a significant portion of Elk Creek’s future operations and infrastructure once full project financing is obtained, according to NioCorp. The Elk Creek project is slated to produce niobium, scandium, titanium, and potentially several magnetic rare earth elements like neodymium and dysprosium vital for high-strength magnets.
Meanwhile, as Rare Earth Exchanges (REEx) and others reported, U.S.-based Ramaco Resources successfully raised $200 million in new capital to accelerate its entry into rare earth element production. The company – historically, a coal producer – closed an upsized public stock offering on August 7, netting gross proceeds of $200 million to fund development of its rare earth and critical minerals project in Wyoming. Ramaco said the financing will bolster its balance sheet and primarily fund the acceleration of its Wyoming rare earth project (a deposit of magnet-grade rare earths discovered alongside its coal operations) and other strategic growth opportunities. This significant investment, underwritten by Morgan Stanley and Goldman Sachs, signals strong institutional confidence in Ramaco’s diversification into critical minerals. It positions the company to advance the Wyoming project – which could become a new domestic source of rare earth oxides – and pursue related downstream ventures.
Canadian Support
North of the border, Canada has also ramped up backing for rare earth projects (in an effort to build Western supply chains). Earlier this summer, Torngat Metals secured C$165 million (opens in a new tab) (~$120 million) in government funding for its Strange Lake rare earth project in Quebec-Labrador. The package – including a loan from Export Development Canada (opens in a new tab) and an infrastructure loan from the Canada Infrastructure Bank (opens in a new tab) – will finance engineering, permitting, and site development for Strange Lake, which hosts one of the largest dysprosium and terbium deposits outside China. According to Torngat’s CEO, this support comes at a “critical juncture” as the Chinese monopoly on heavy rare earths drives global magnet shortages. The funding is a first-of-its-kind investment by these Canadian institutions in a mining project, underlining the strategic importance of establishing a domestic supply of heavy rare earth elements for EVs, wind turbines, and defense technologies.
Magnet Supply Chain Partnerships and Offtake Agreements
Multiple partnership agreements were unveiled this week to secure supplies of rare earth magnets and materials, reflecting an intensified push to localize magnet production for high-tech industries.
Drone Tech Alliance
On August 5, USA Rare Earth, Inc (opens in a new tab). (USAR) and New Hampshire-based electric propulsion firm ePropelled announced a joint development agreement (opens in a new tab) (JDA) to supply neodymium-iron-boron (NdFeB) magnets for advanced drone motors. Under the deal, USA Rare Earth will provide ePropelled with lightweight, sintered neo magnets from its Oklahoma manufacturing plant for use in ePropelled’s high-performance electric propulsion systems in uncrewed aerial, land, and marine vehicles. “We’re thrilled to partner with USA Rare Earth to secure the rare earth materials essential to our uncrewed vehicle solutions,” said ePropelled CEO Nick Grewal, highlighting that expanding a domestic supply chain is key to meeting customer demand in the fast-growing drone industry. USA Rare Earth’s Stillwater, OK facility – commissioned earlier this year – will begin prototyping magnets for ePropelled immediately, according to the companies. REEx notes that this fits in with the USA Rare Earth strategy of the mid-market focus.
In a related move, earlier in the summer USA Rare Earth also signed an MOU (opens in a new tab) with PolarStar Magnetics (opens in a new tab), a Tier-2 aerospace supplier, to collaborate on U.S.-made defense magnets. This partnership, disclosed May 28, will see PolarStar participate in early testing of USA Rare Earth’s neodymium magnets with an eye toward a multi-year supply agreement. It marks another step in USAR’s mission to establish a fully domestic rare earth magnet supply chain for both military and commercial needs, initially targeting the small to mid-sized market segment.
By engaging a defense-focused partner (PolarStar) at the product qualification stage, USA Rare Earth aims to ensure its Oklahoma-made magnets meet stringent aerospace standards (e.g., DFARS compliance) as the company ramps up production.
Automotive Magnet Deals
In the automotive sector, General Motors struck a landmark supply deal (opens in a new tab) to reduce its reliance on imported magnets. GM entered a multi-year agreement with Texas-based Noveon Magnetics to source rare-earth permanent magnets for its vehicle lineup. Announced August 6, the deal (opens in a new tab) calls for Noveon – currently the only operational U.S. manufacturer of sintered NdFeB magnets – to provide magnets for GM’s full-size pickup trucks and SUVs, with deliveries already begun in July. This is GM’s third domestic magnet supply contract (the automaker had earlier agreements with MP Materials (opens in a new tab) in California and Vacuumschmelze’s U.S (opens in a new tab). unit in South Carolina), and it means a majority of the magnets in GM’s EV motors and other components will come from U.S. production. The move comes in direct response to China’s tightening of rare earth export controls in the spring, which had caused disruptions – Ford, for example, idled some production in June due to magnet shortages as cited by REEx. By lining up Noveon’s U.S.-made magnets, GM is joining the broader trend of “re-shoring” critical magnet supply. Noveon’s technology, which includes recycled rare earth inputs, promises high-performance magnets with a lower dependency on Chinese raw materials. The GM-Noveon partnership underscores the growing importance of rare earth magnets for the auto industry and dovetails with U.S. policy efforts to foster an end-to-end domestic EV supply chain.
International Magnet JV
Outside the U.S., a notable cross-border partnership was forged to expand magnet manufacturing in Asia. Lynas Rare Earths (opens in a new tab) of Australia and South Korea’s JS Link (opens in a new tab) (a biotech and magnet technology company) announced late July that they have signed a memorandum of understanding to cooperate on rare earth magnet production. The MoU made public in early August, outlines plans for the two companies to secure rare earth oxide feedstock for magnet manufacturing and to build a new 3,000 tonne-per-year NdFeB magnet plant near Lynas’s processing facility in Kuantan, Malaysia. By collocating a magnet factory with Lynas’s established upstream refinery in Malaysia, the partnership aims to create a vertically integrated supply outside of China – Lynas will supply the neodymium-praseodymium material, while JS Link contributes its magnet fabrication expertise. Once operational (targeted for 2026), the Malaysia magnet plant would serve Asian and global markets, supporting high-end applications from electric vehicles to robotics. Lynas’s CEO welcomed the JS Link collaboration as a way to add value to Lynas’s products and meet surging regional demand for magnets in a secure, onshore setting. This is one of the first major Australia–Korea joint efforts in the critical minerals space, illustrating how allies are pooling resources to build alternative rare earth supply chains.
Tech Industry Commitment
Major end-users are also stepping directly into rare earth supply deals. Notably, Apple Inc. revealed new details this week of its initiative to source more components domestically. As part of Apple’s just-launched $600 billion U.S. investment push, the company confirmed it has committed to buy American-made rare earth magnets from MP Materials for use in future Apple devices. This builds on a pledge Apple made in July amid heightened U.S.–China trade tensions. MP Materials – the operator of Mountain Pass mine in California – is constructing a magnet manufacturing facility in Fort Worth, Texas, and Apple’s commitment (reported to include a large prepayment) will significantly expand MP’s magnet output at that site, reports the company (opens in a new tab). According to Apple, the Apple-MP agreement ensures that magnets for devices like the iPhone and Mac will be made in the USA from U.S.-mined and processed rare earths, a first for the consumer electronics sector. In addition, Apple and MP will jointly establish a rare earth recycling line at Mountain Pass to reclaim magnets from end-of-life electronics. By securing domestic magnet supply and investing in recycling, Apple is both supporting U.S. manufacturing and guarding against supply chain disruptions. Industry observers have called Apple’s move a potential “game-changer” that could encourage other tech OEMs to follow suit in localizing their rare earth magnet supply chains suggests Reuters (opens in a new tab).
Government and Policy Initiatives
The flurry of corporate deal-making comes as governments continue to implement policies and partnerships to secure critical minerals. Just weeks ago, the U.S. Department of Defense (DoD) unveiled an unprecedented agreement with industry: the DoD will take an equity stake in MP Materials and provide price guarantees for its output as part of a public-private effort to boost domestic rare earth production. Under the deal (announced in mid-July), the Pentagon becomes MP’s largest shareholder and will guarantee a floor price of $110/kg for certain key rare earth oxides – roughly double the prevailing Chinese market price – to encourage U.S. production. The DoD’s investment, executed via the Defense Production Act, injects capital for MP’s expansion and essentially underwrites the economics of U.S. rare earth separation and magnet manufacturing. This “game changer” deal is Washington’s most high-profile intervention to date in the rare earth sector and reflects a strategic imperative to counter China’s dominance. (China’s own grip was highlighted when it imposed export licensing restrictions on some rare earths and magnets in April, causing Western manufacturers to scramble.) The DoD-MP partnership is expected to accelerate construction of new U.S. magnet factories and could serve as a model for future government support to other projects.
On the international front, the U.S. is also forging alliances to develop new sources of critical minerals. This week, officials from the United States and the Cook Islands announced a bilateral collaboration to advance deep-sea mineral development in the Pacific as covered by NASDAQ (opens in a new tab) and others. The agreement, which coincided with the Cook Islands’ 60th anniversary of self-governance, will focus on scientific research and the responsible exploration of seabed minerals — including polymetallic nodules that contain rare earth elements and other critical metals — within Cook Islands waters. It marks a significant step in strengthening U.S.-linked commercial participation in Pacific mining ventures, as well as supporting sustainable economic development for the Cook Islands. Both nations emphasized commitments to environmental stewardship and transparency in any seabed mining. American companies like ReElement Technologies (opens in a new tab) applauded the partnership, noting that it aligns with efforts to build a diversified and ethical global supply chain for critical minerals. This comes on the heels of other U.S.-led critical mineral agreements in the Indo-Pacific, and is seen as part of a broader strategy to offer Pacific Island nations alternatives to Chinese investment in undersea resources.
China’s Ongoing Expansion
Not to be overlooked, China itself – the dominant player in rare earths – continues to expand and reorganize its industry, though no major new deals were announced from China this week. China’s largest producer, China Northern Rare Earth Group (CNRE), reported that domestic demand for rare earth products has been stable and even better than expected in recent months as covered in REEx and Shanghai Metals Market.
In a late-June investor briefing, CNRE outlined aggressive capacity growth plans: its subsidiary is constructing a new 50,000 ton-per-year high-performance NdFeB alloy plant to add to an already huge 100,000 tpy alloy capacity. The company also recently completed a 5,000 tpy magnet fabrication project via a joint venture (Antai Northern) and launched another JV to build a 3,000 tpy high-end magnet materials plant in Inner Mongolia. These projects will expand China’s output of magnet alloys and finished magnets for EV motors, wind turbines, and advanced machinery. CNRE indicated it will continue to “extend and strengthen” its industrial chain through potential mergers and acquisitions, aiming to translate its resource base into greater downstream market share. The Chinese government has also been implementing new policies (such as export controls and production quotas) to manage the sector.
Notably, after trade negotiations in late June, China agreed to temporarily export licenses to certain suppliers in June; but licensing risk remains for some suppliers. A provisional truce runs through August – but uncertainty remains.
All told, China is leveraging its advantages (which include ~40% of global rare earth reserves and unrivaled processing know-how) to further solidify its supply chain. The West’s recent deal-making spree – from U.S. magnet factories and alliances with resource-rich nations, to European recycling investments – is very much a response to China’s entrenched position and its willingness to weaponize supply. As CNRE’s outlook suggests, China is “optimistic” about rare earth market trends and is actively fortifying its industry for the future.
Conclusion
The week of August 4, 2025, underscores how dynamic and globally interconnected the rare earth sector has become. Significant financing is flowing into new mining and processing projects in North America; manufacturers and tech companies are striking partnerships to secure magnet supplies outside of China; and governments from Washington to Beijing are shaping the playing field through investment, trade agreements, and industrial policy. The deals of the week – involving players from the U.S., Canada, Australia, Korea, Japan, Saudi Arabia, and the Pacific – all point toward one theme: building a resilient, diversified rare earth supply chain is now a top-tier economic and strategic priority worldwide. Each new partnership or funding announcement is another piece of a rapidly evolving puzzle, as industries race to ensure they can obtain the rare earth materials critical for the next generation of technologies. Expect this deal momentum to continue in the coming weeks, as more countries and companies stake their claims in the rare earth supply chain of the future.
Sources:
- NioCorp Developments – Press Release (Aug. 4, 2025): Land acquisition for Elk Creek projectniocorp.com (opens in a new tab)
- Ramaco Resources – PR Newswire/StockTitan (Aug. 7, 2025): $200 million public offering for rare earth projectstocktitan.net (opens in a new tab)stocktitan.net (opens in a new tab)
- ePropelled Inc. – Press Release (Aug. 5, 2025): JDA with USA Rare Earth for drone magnetsepropelled.com (opens in a new tab)
- USA Rare Earth – MOU with PolarStar (Aug. 2025): domestic defense magnet partnershipstocktitan.net (opens in a new tab)
- Reuters (Aug. 6, 2025): GM signs supply deal with Noveon for rare earth magnetsreuters.com (opens in a new tab)reuters.com (opens in a new tab)
- Fastmarkets (Aug. 8, 2025): Lynas and JS Link MoU for Malaysia magnet plantfastmarkets.com (opens in a new tab)
- Apple Newsroom (Aug. 6, 2025): American Manufacturing Program and rare earth magnets initiativeapple.com (opens in a new tab)
- Reuters (July 10, 2025): DoD investment in MP Materials and magnet price floorreuters.com (opens in a new tab)reuters.com (opens in a new tab)
- Accesswire/NASDAQ (Aug. 8, 2025): U.S.–Cook Islands seabed minerals cooperation announcementnasdaq.com (opens in a new tab)
- Reuters/Nikkei (July 16, 2025): Japan–Saudi Arabia expected rare earth investment agreementreuters.com (opens in a new tab)
- SMM (China Northern Rare Earth investor Q&A, June 26, 2025): Capacity expansion and stable demand in Chinametal.com (opens in a new tab)metal.com (opens in a new tab)
- Reuters (Aug. 6, 2025): Context on China’s export controls and global supply sharereuters.com (opens in a new tab)
Past CAD strategic RE wannabee support after being ‘lost’ in Vital Metals and Search Mins and now lacking clarity in Arafura then went big time into one of the lesser-known (and private) CAD RE mining wannabees. What does this mean for those around the last two decades, e.g., Appia and Commerce, etc?
GLTA – REI