Rare Earth Processing 2025 – Global Capacity and Key Players

Highlights

• China controls nearly 90% of global rare earth refining capacity, with significant leverage in the global market.
• Non-Chinese producers like Lynas Rare Earths, MP Materials, and others are actively developing alternative rare earth supply chains.
• Western governments are supporting strategic rare earth projects to reduce dependency on Chinese production.

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China controls nearly 90% of global rare earth refining capacity in 2025, including a near-monopoly on heavy rare earth elements (HREEs) like dysprosium and terbium. Through state-led consolidation, major players like China Rare Earth Group and China Northern Rare Earth dominate the supply chain from mine to magnet. China produces over 300,000 tonnes of NdFeB magnets annually, compared to the U.S.’s 1,000-tonne target. Chinese export controls on rare earth oxides and alloys have introduced supply risk for global manufacturers. These structural advantages give Beijing significant leverage.

The Principal Non-Chinese Producer—Down Under

Lynas Rare Earths leads outside China, operating the Mt Weld mine in Australia and a separation facility in Malaysia. Lynas supplies 5,000-6,000 tonnes/year of NdPr oxide and is expanding with a new U.S. facility targeting light and heavy RE separation. Iluka Resources is building Australia’s first integrated refinery (Eneabba) with 17,500 t/y capacity, while Arafura’s Nolans project aims to produce 4,440 t/y NdPr oxide by 2025. Australia is cementing its role as the #2 refining hub.

United States: Rebuilding Capacity

MP Materials has restarted Mountain Pass operations and produced 1,300 t of NdPr oxide in 2024. Its Fort Worth, Texas magnet plant will soon deliver 1,000 t/y NdFeB magnets using U.S.-sourced rare earths. However, MP lacks heavy rare earths. Energy Fuels, via White Mesa Mill in Utah, is producing mixed rare earth carbonates and small quantities of NdPr oxide. Its partnership with POSCO International aims to create a Korea-linked, non-Chinese supply chain.

Emerging Non-Chinese Players

• South Korea: SEONG-AN and Seonglim Advanced are producing NdPr metal and NdFeB magnets from U.S. feedstock.
• Japan: Major magnet manufacturers rely on imported oxides, largely from Lynas and China, but are expanding recycling efforts.
• Europe: Neo Performance’s Silmet plant in Estonia remains the EU’s only commercial separator. Its new magnet plant in Narva (2,000 t/y) and partnerships with U.S. producers create EU-US supply links. Pensana (UK), REEtec (Norway), and others are building new refineries.

Outlook and Geopolitical Considerations

China’s refining and magnet dominance remains strong but faces growing competition. Western governments are backing projects to secure strategic supply chains. Lynas, MP Materials, Iluka, Arafura, and Neo are the most advanced challengers.

Heavy rare earth processing remains the biggest gap, though Energy Fuels and USA Rare Earth are pursuing solutions. If current projects succeed according to at least some bullish estimates China’s market share could drop from ~90% to ~75% by 2028, but Rare Earth Exchanges suggest industrial policy is likely necessary. 

The race is on to diversify before the next supply shock hits.