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Key developments: China’s 2025 export curbs on heavy rare earths and a pending U.S. defense rule banning Chinese‑origin rare‑earth metals and magnets from 2027 have spurred a wave of investment in non‑Chinese sources. MP Materials has scaled up, posting a record 50,692 t of REE concentrate in 2025 and commencing domestic NdFeB magnet production in Texas. The company is also adding a heavy‑rare‑earth separation line targeted at 200 t/yr of dysprosium and terbium, the most supply‑constrained elements. The Pentagon’s $400 m equity stake and a ten‑year, $110 kg/yr offtake deal underline the strategic priority, while broader U.S. policy delivers grants, loans and equity to bridge mining‑to‑magnet gaps.
Why it matters: Heavy rare earths such as dysprosium and terbium are critical for high‑temperature magnets used in defense, EVs and wind turbines. With China controlling roughly 60% of mined magnet REEs, 91% of refined output, and 94% of permanent‑magnet production, the U.S. dependence poses national‑security and economic risks. Domestic production and processing seek to cut that exposure before the 2027 procurement restriction takes effect, ensuring supply for military systems and clean‑energy technologies.
What to watch next: • Progress of MP Materials’ heavy‑REE separation line and scale‑up of U.S. magnet factories. • Additional federal funding pipelines, such as DOE’s Critical Materials Innovation program and Army pilot‑plant proposals. • Developments in Brazil’s Serra Verde ionic‑clay projects and Saudi Arabia’s Jabal Sayid partnership with MP Materials, which could add new feedstock. • Any further Chinese export policy adjustments before the January 2027 deadline, which would influence market pricing and strategic stockpiling decisions. [[1, 2]]