Rare-Earth Metallization: The Missing Middle in the Magnet Supply Chain

Highlights

• China dominates over 90% of rare-earth refining and permanent magnet output, with similarly dominant control over the intermediate metallization step between oxide and magnet production.
• Less Common Metals (LCM), acquired by USA Rare Earth, and Australian Strategic Materials (ASM), acquired by Energy Fuels, are the two most established Western metallization platforms, though both face challenges ramping to commercial scale.
• MP Materials has integrated metallization at its Fort Worth facility, converting NdPr oxide into metal and alloy flake, while REalloys and Phoenix Tailings are targeting independent merchant metallization capacity in the U.S.
• India is emerging as a potential new entrant, with government-backed programs targeting 6,000 tonnes per year of integrated sintered NdFeB capacity and early pilot lines now operating.
• The IEA estimates announced ex-China metals, alloys, and magnet capacity at only about 18,000 tonnes—roughly one-third of diversified mining capacity—highlighting metallization as a critical strategic bottleneck.