Geopolitical shifts and strategic investments accelerate the race for mineral independence in batteries, energy systems, and defense.
At a glance – The past 24 hours have seen a marked intensification of efforts to secure rare earths and critical minerals, with global supply chains adapting to new export controls, government investments, and strategic alliances. China’s rare earth exports dipped by 3.4% in August to 5,792 tons, following the country’s April restrictions on heavy rare earth exports. This move has heightened pressure on Western producers to accelerate independent supply chain development, particularly for materials essential to batteries, motors, and defense systems. Energy Fuels, a US-based producer, began heavy rare earth production in July, directly responding to China’s dominance and new export controls. The sector is experiencing a pivotal shift as nations and companies race to secure access to these strategic resources.
Technology advance – ReElement Technologies, a subsidiary of American Resources Corporation, has received a $2 million grant from the US Department of Defense to expand its Noblesville, Indiana refinery. The facility is equipped to process both light and heavy rare earths, as well as lithium, from ores and recycled materials. The underlying refinement technology, originally developed by Purdue for high-purity pharmaceuticals, is now being leveraged to supply critical minerals for US defense needs. CEO Mark Jensen confirmed that the plant’s output could meet the full spectrum of minerals required by the defense sector, marking a significant technological step toward domestic mineral independence and reduced reliance on Chinese supply chains.
Partnerships – In a major move to bolster domestic supply chains, U.S. Critical Materials and GreenMet have announced a strategic alliance focused on gallium and other critical minerals. This partnership aims to build a resilient US supply chain for gallium, a metal vital for semiconductors and advanced electronics, and to reduce dependence on foreign sources. The alliance will leverage GreenMet’s expertise in sustainable mineral processing and U.S. Critical Materials’ domestic sourcing capabilities, positioning the US as a leader in critical mineral independence. The collaboration is expected to accelerate the development of new refining technologies and establish secure supply channels for both defense and energy sectors.
Acquisitions/expansions – Ucore Rare Metals, led by CEO Pat Ryan, is advancing its rare earth refining operations from Canada to Louisiana, with a new facility set to open in late 2025. The Louisiana plant will utilize proprietary RapidSX™ separation technology to process rare earths sourced from North America, aiming to supply materials for electric vehicle batteries and defense applications. This expansion represents a strategic shift in North American refining capacity, reducing reliance on Chinese processing and supporting the growing demand for critical minerals in the US automotive and defense industries. Ucore’s move is seen as a blueprint for future expansions by other Western companies seeking to localize mineral processing.
Regulatory/policy – The Group of Seven (G7) nations are actively considering the implementation of rare earth price floors and other market interventions to counter China’s dominance in the sector. These measures, discussed in recent high-level meetings, are designed to stabilize global prices and incentivize investment in alternative supply chains. The G7’s policy deliberations reflect growing concerns over China’s export controls and the vulnerability of Western industries to supply disruptions. If enacted, price floors could reshape the economics of rare earth mining and refining, encouraging new entrants and supporting existing producers outside China.
Finance/business – The US government is ramping up direct investment in domestic mining and processing projects for critical minerals, with billions allocated to strengthen supply chains and reduce dependence on Chinese imports. Recent federal funding announcements have catalyzed interest from both junior and major mining companies, particularly in the cobalt and nickel sectors, which have historically struggled to gain traction in the US. These investments are expected to enable midstream materials to be inventoried in strategic stockpiles, further enhancing national mineral security. The financial commitment signals a long-term strategy to secure the raw materials essential for batteries, energy systems, and defense technologies, with ripple effects anticipated across global markets.
Sources: strategicmetalsinvest, prnewswire, investornews, mining.com, blog.burnsmcd, shalemag
