US Rare Earths Shift from China Amid Domestic Demand Growth
US-based MP Materials is redirecting rare earths sales from China to Asia and domestic partners, including General Motors and Apple, as domestic demand slowly emerges. Energy Fuels, backed by $725 million in government funding, plans to scale production and export to Korea. The shift reflects growing US efforts to reduce dependence on Chinese rare earths.
Key points
- MP Materials, the US's largest rare earths miner, has stopped selling to China's Shenghe Resources under a deal with the US government.
- The company plans to produce its own magnets at scale, consuming much of its production, and has agreements with General Motors and Apple to supply them with magnets.
- Energy Fuels, backed by $725 million in government funding, plans to scale production and export to Korea, with a focus on rare earths metal-making in South Korea.
- Energy Fuels is acquiring Australian Strategic Materials and German magnet maker Vacuumschmelze (VAC) in a $1.9 billion deal, expanding its US operations.
- The shift reflects growing US efforts to reduce dependence on Chinese rare earths, with China being the largest global producer of neodymium iron boron magnets.
US Rare Earths Shift from China Amid Domestic Demand Growth
The US is redirecting its rare earths sales from China to Asia and domestic partners, marking a significant shift in the global supply chain. MP Materials, the US's largest rare earths miner, has stopped selling to China's Shenghe Resources under a deal with the US government. The company plans to produce its own magnets at scale, consuming much of its production, and has agreements with General Motors and Apple to supply them with magnets.
Energy Fuels, backed by $725 million in government funding, plans to scale production and export to Korea, with a focus on rare earths metal-making in South Korea. The company is acquiring Australian Strategic Materials and German magnet maker Vacuumschmelze (VAC) in a $1.9 billion deal, expanding its US operations.
This shift reflects growing US efforts to reduce dependence on Chinese rare earths, with China being the largest global producer of neodymium iron boron magnets. The move is expected to have significant implications for the global supply chain and the US's ability to produce critical technologies such as electric vehicles and renewable energy systems.
Sources
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