Highlights
- Major international mining and financing projects advancing rare earth production in Africa, Australia, and North America
- U.S. and allied governments deploying significant funding to develop domestic rare earth supply capabilities
- China maintains strategic control through complex policy maneuvers of export adjustments and production quotas
Highlights:
- Major project financings and offtake agreements spanningAfrica, Australia, and North America are advancing new rare earth mining and refining capacity.
- U.S. magnet manufacturing ventures inked supply deals to secure domestic rare earth materials, aiming to cut reliance on Chinese magnets.
- Governments ramped up support and policy actions – from a $1 billion U.S. funding program to China tweaking export controls – underscoring the strategic importance of rare earths in the global supply chain.
This week brought a flurry of deal-making across the global rare earth element (REE) supply chain – from upstream mining to downstream magnet manufacturing – as countries and companies race to diversify supply away from China.
Upstream Projects: New Funding and Offtake Deals
Malawi’s Kangankunde Gets Green Light
Australia’s Lindian Resources reached a final investment decision on its Kangankunde rare earth project in Malawi. The firm raised A$91.5 million (~US$59m) in new equity and secured a $20m offtake deal with Iluka Resources, which will take 6,000 tonnes annually of concentrate for 15 years to feed its Eneabba refinery in Australia. Iluka is also extending Lindian a $20m loan, giving the mine financial runway to target first production in late 2026.
Arafura Gains Financing Backing
Another Australian developer, Arafura Rare Earths, obtained a non-binding Letter of Interest from Export Finance Australia for up to US$100m in support of its Nolans mine and processing project. Nolans is set to be the country’s first integrated rare earth operation and has attracted offtake interest from Hyundai, Kia, and General Electric. The EFA backing highlights how Canberra is co-financing projects to secure critical supply for allies.
Magnet Supply Chain Partnerships in the U.S.
ReElement–Vulcan Alliance
North Carolina startup Vulcan Elements signed a five-year supply agreement with Indiana-based ReElement Technologies for thousands of tonnes of NdPr oxides annually, starting 2026. ReElement will provide feedstock using a Purdue-licensed separation technology applied to recycled materials. Notably, the agreed pricing is below the $110/kg price floor set by the Pentagon for domestic REO, signaling a potential cost-competitive alternative to Chinese supply.
USA Rare Earth Expands Partnerships
USA Rare Earth (USAR), building a 310,000 sq ft magnet plant in Oklahoma, signed an MOU with Enduro Pipeline Services to supply magnets for “smart pig” inspection devices. USAR has also lined up collaborations with Moog, PolarStar, and StudBuddy to seed early demand for its 2026 output. These efforts mirror similar deals by GM (with Texas-based Noveon) and Apple (a $500m commitment to MP Materials), all pointing toward a rapidly localizing U.S. magnet ecosystem.
Government Support in the U.S. and Allies
The U.S. Department of Energy unveiled nearly $1 billion in funding to spur domestic critical minerals. This includes $135m for a rare earth demonstration facility and $50m to scale U.S. magnet production. Energy Secretary Chris Wright stressed the need to end reliance on foreign actors, calling the funding a national security imperative. Grants will be cost-shared with private partners, with rollout expected in late 2025.
Canada has also stepped up, committing C$165m to Quebec’s Strange Lake rare earth project earlier this summer. In Europe, Estonia’s Narva magnet plant – supported by Neo Performance Materials and EU funds – is on track to open next month, marking one of the bloc’s first NdFeB production facilities.
Meanwhile, the U.S. and India held a high-level R&D forum during the ACS Fall 2025 conference to explore joint projects in REE processing, recycling, and magnet development. For India, reeling from recent Chinese export curbs, the partnership is a way to hedge supply risk while deepening U.S. ties.
China’s Policy Moves: Push and Pull
China sent mixed signals this week. On August 20, it lifted export restrictions on certain rare earth magnets imposed in April, easing pressure on India’s EV and defense sectors. Yet just two days later, Beijing extended its production quota system to include imported ores and concentrates, effectively capping foreign feedstock entering Chinese refineries. This closes a long-standing loophole and reinforces China’s control over both domestic and imported material flows.
The dual strategy – loosening exports to ease tensions while tightening quotas to reinforce upstream dominance – underscores China’s continued grip on supply. For the rest of the world, it is a reminder that processing bottlenecks remain largely under Beijing’s authority, spurring urgency for alternative supply chains.
Conclusion
This week’s developments show momentum on three fronts: mines advancing toward production, magnets moving closer to domestic supply chains, and governments deploying serious capital and policy muscle. Yet China’s policy maneuvers remind investors that the global REE sector remains finely balanced on geopolitical currents. For retail and institutional players alike, the rare earth market is in historic flux – and the scramble to secure non-China supply is only accelerating.
Rare Earth Deal Tracker – Week of Aug 18–23, 2025
| Company/Parties | Type of Deal | Value/Size | Region | Strategic Significance |
|---|---|---|---|---|
| Lindian Resources – Iluka Resources | Equity raise + Offtake + Loan | A$91.5m placement (~US$59m); $20m loan; 6,000 t/y concentrate for 15 yrs (~90,000 t total) | Malawi / Australia | Secures feedstock for Iluka’s Eneabba refinery; accelerates Kangankunde mine to 2026 production; diversifies supply outside China |
| Arafura Rare Earths – Export Finance Australia | Government-backed financing (Letter of Interest) | Up to US$100m (A$150m) | Australia (Northern Territory) | Supports Nolans integrated mine/refinery; signals strong government role; end-users Hyundai, Kia, GE circling for offtake |
| ReElement Technologies – Vulcan Elements | Supply Agreement (5 yrs) | Thousands of tonnes REO annually (pricing < $110/kg DoD floor) | United States (Indiana & North Carolina) | First large-scale U.S. deal for NdPr oxide supply; leverages Purdue chromatography tech; potential cost-competitive alternative to China |
| USA Rare Earth – Enduro Pipeline Services | MOU for magnet supply | Volume not disclosed (magnets for pipeline inspection “smart pigs”) | United States (Oklahoma & Texas) | Expands early demand pipeline for USAR’s 2026 magnet plant; complements MOUs with Moog, PolarStar, StudBuddy |
| U.S. Department of Energy | Grant programs (public-private) | Nearly $1b total; $135m REE demo facility; $50m magnet production support | United States | Largest U.S. federal support package to date for REEs; aims to re-establish full domestic mine-to-magnet supply chain |
| Canada – Strange Lake Project | Government funding (summer 2025; reaffirmed) | C$165m (~US$120m) | Quebec/Labrador | Boosts one of North America’s biggest heavy REE projects; reinforces allied strategy to develop non-China HREEs |
| Neo Performance Materials (Narva, Estonia) | Plant commissioning (EU-backed) | Value not disclosed (supported by EU Raw Materials Alliance) | Estonia / EU | First EU-based NdFeB magnet plant (opening Sept 2025); reduces dependence on Chinese magnets |
| U.S.–India Advanced Materials R&D Forum | Bilateral cooperation (R&D, tech exchange) | Not monetary; strategic collaboration | Virtual (ACS Fall 2025) | Deepens Indo-U.S. ties on rare earth processing, recycling, and magnet tech; hedge against Chinese export curbs |
| China (MIIT) | Policy adjustment | Quotas extended to imported ore/concentrates | China | Tightens Beijing’s control over raw feedstock entering China; raises barriers for foreign producers relying on Chinese tolling |
| China (MOFCOM) | Policy easing | Lifted April 2025 magnet export bans | China/India | Temporary relief for Indian EV and defense sectors; shows Beijing’s tactical use of controls to ease tensions |
Disclaimer—some company numbers are self-reported and need validation.
Sources: Company announcements, Reuters, Rare Earth Exchanges reporting.
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