Western Rare Earths Supply Chain Springs into Gear
Rare earths processing occurs in two main stages.
Global supply chains for rare earths are shifting to diversify away from top producer China, aiming to support the creation of permanent magnets used in products ranging from electric vehicles to wind turbines and drones. Let's look at the companies that are building or already have production facilities for rare earth compounds, metals, and magnets to reduce the West's dependence on imports from China.
Rare Earths Processing Stages
Processing rare earths happens in two crucial stages. Firstly, rare earths are extracted from ores with mixed minerals, concentrated into a mixed rare earth concentrate or carbonate. The second, more complicated stage is the separation of rare earths into individual oxide compounds. From these oxides, products are made into metals used for magnet production.
Key Companies in Rare Earths Supply Chain
LYNAS RARE EARTHS
Lynas Rare Earths is the largest supplier of rare earth compounds outside China, operating from its Mount Weld mine in Australia. They have processing operations in Australia and Malaysia and are building a heavy rare earths processing plant in Texas with $288 million in U.S. defense funding, expected to start in fiscal 2026.
SOLVAY
Solvay, a Belgian chemicals maker, is expanding its rare earths processing operations in La Rochelle, France. Solvay aims to launch the separation and production of rare earth oxides needed for permanent magnet production in 2025. They also signed agreements for manufacturing opportunities and purchasing rare earth oxides from recycled materials.
VACUUMSCHMELZE
Vacuumschmelze (VAC), a German company, is one of the biggest producers of permanent magnets outside China. They have facilities worldwide and received U.S. government funding of $111.6 million to build a neodymium-iron-boron magnet plant in South Carolina, expected to complete by late 2025.
LESS COMMON METALS
Less Common Metals, based in the UK, produces rare earth metals/alloys and is part of the European Supreemo project aiming to establish a European rare earths value chain.
REETEC
REEtec in Norway is backed by Swedish miner LKAB and is constructing a commercial rare earth separation plant due to start production in 2025. Discussions are ongoing with companies to provide concentrate for the plant.
ILUKA
Iluka Resources, an Australian mineral sands producer, is building the Eneabba rare earths refinery, which will process both their own and third-party heavy rare earths. The refinery is expected to begin operations by the end of 2026.
POSCO, STAR GROUP
Posco International from South Korea will provide permanent magnets produced by Star Group to German and U.S. automakers starting in 2025, sourced from the U.S., Australia, and Vietnam.
JAPAN
Japan boasts a well-developed magnet market, supplying its automotive and high-tech industries. Major producers include Shin-Etsu Chemical, TDK Corp, and Proterial.
VTRE
VTRE from Vietnam suspended production in 2022 after its chairman was arrested. They had partner agreements with Australian rare earth developers Blackstone Minerals and Australian Strategic Materials.
NEO PERFORMANCE MATERIALS
Neo Performance Materials, based in Toronto, produces rare earth oxides, magnetic powders, and permanent magnets, with facilities around the world. They plan to launch a new permanent magnet plant in Estonia next year.
SASKATCHEWAN RESEARCH COUNCIL
Saskatchewan Research Council in Canada received government funding to build a rare earths processing plant and has an agreement with Vietnam's Hung Thinh Group to import up to 3,000 tons of rare earth carbonate per year starting in June 2025.
UCORE
Ucore Rare Metals from Canada is constructing a facility in Louisiana to separate heavy and light rare earths, expected to start operations by late 2025.
RAINBOW RARE EARTHS
Rainbow Rare Earths, backed by private investment firm TechMet, is processing rare earth oxide at a facility in Florida. They aim to produce rare earths carbonate from their Phalaborwa project in South Africa.
MP MATERIALS
MP Materials builds a rare earth magnet manufacturing facility in Texas with government funding. They started producing some rare earth oxides at their California site in 2023 and plan to produce finished magnets by late 2025.
ENERGY FUELS
Energy Fuels in the U.S. has begun producing commercial quantities of separated rare earths at its Utah operations, aiming for up to 1,000 tons of neodymium-praseodymium per year.
FIEMG
Brazil's state of Minas Gerais Federation of Industries (FIEMG) is setting up a magnet factory expected to produce 100 tons of magnets per year at full capacity starting the second half of this year.
By strengthening the rare earths supply chain, these companies are reducing the West's reliance on China for essential materials needed in futuristic technologies.
