Latest news with #rareearths
Bloomberg
15 hours ago
- Business
- Bloomberg
Rare-Earth Miner Aclara Seeks State Funding for US-Brazil Plans
Aclara Resources Inc. is in talks with US government agencies for possible financing toward its $1.5 billion plan to mine rare earths in Latin America and develop processing facilities in the US. The company is looking to leverage efforts by Western governments to reduce reliance on China, which currently makes about 90% of the world's rare earth permanent magnets.
Yahoo
4 days ago
- Business
- Yahoo
Rare Earths Rally After the Pentagon Picks a Winner
Shares of rare earths companies have exploded higher since MP Materials (NYSE:MP) unveiled a game-changing deal with the U.S. Department of Defense that marks the most aggressive federal intervention in the rare earths space in decades. The DoD-backed investment package will see the Nevada-based producer build out a fully domestic magnet supply chain and lock in long-term pricing support for neodymium-praseodymium, the critical alloy used in everything from fighter jets to iPhones. MP shares have doubled in just days, taking year-to-date gains north of 275% and re-rating the entire Western rare earths complex. The deal isn't just about cash; it's about control. Under the agreement, the Pentagon will take a 15% equity stake in MP through a $400 million preferred share issuance and secure warrants for additional common stock down the road. The government is also extending a $150 million loan, while JPMorgan and Goldman Sachs are syndicating $1 billion in private financing to bring MP's so-called '10X Facility' online. Construction is already underway, with commissioning slated for 2028. The real deal sweetener is a $110/kg floor price guarantee for NdPr magnets, nearly double today's spot price of $63. That pricing mechanism, backed by the full faith and credit of the U.S. government, creates a bulletproof margin environment for domestic producers and resets the cost basis for long-term buyers across defense, autos, and consumer electronics, according to Reuters. Analysts say it's the rare earths equivalent of a strategic petroleum reserve, but for permanent magnets. MP's planned capacity of 10,000 metric tons per year will cover a significant chunk of U.S. magnet demand and more than double current domestic output. For defense planners, the numbers are even more compelling: that volume would be enough to secure magnet supply for the entire F-35 fleet, major missile systems, and naval sonar applications—all without touching Chinese exports. The move immediately drew follow-on activity. Apple Inc. said it would invest $500 million to source NdFeB magnets from MP made entirely from recycled feedstock. The tech giant, which has faced mounting scrutiny over its reliance on Chinese rare earths, said production would begin in 2027 and ramp up to cover 'hundreds of millions' of devices per year. Apple will source from MP's upgraded facility in Mountain Pass, California, and its soon-to-be-operational Texas plant, using material pulled from discarded devices and scrap. The Apple deal adds enormous commercial legitimacy to MP's scale-up and underscores the trend toward localization at the OEM level. Recycled magnet manufacturing has long been viewed as a technical curiosity. Now it's a $500 million line item on Apple's strategic sourcing agenda. Meanwhile, rare earth equities have gone vertical. Lynas Rare Earths (OTCPK:LYSDY) surged to a two-year high after Jefferies hiked its price target from A$6.40 to A$10, calling the company 'the next logical beneficiary' of U.S.-led reshoring. Iluka Resources exploded 30% in a single session—its biggest one-day gain on record—as investors rotated into any name with near-term capacity outside China. Australian juniors like Liontown and Sayona also caught a bid. MP added to the frenzy by announcing a $500 million common stock offering to fund continued expansion and working capital—triggering a minor pullback in the stock but doing little to dent the broader narrative. Capital is pouring into rare earths like it's 2011. Defense contractors were quick to endorse the move. Lockheed Martin, prime contractor for the F-35, said it welcomed efforts to 'strengthen secure, resilient supply chains.' Analysts say the move will de-risk magnet inputs for THAAD batteries, Virginia-class submarines, and next-gen missile systems. At the industrial level, General Motors and Stellantis are evaluating new sourcing options for permanent magnet EV motors as they accelerate domestic platform rollouts. What sets this deal apart is its structure. Rather than handing out tax credits or indirect subsidies, the U.S. government is writing equity checks, underwriting price floors, and letting commercial lenders come in behind. The structure resembles the CHIPS Act, but more serious. Analysts say this model could be replicated for battery anodes, graphite, and even gallium. Still, execution risks loom. MP will need a reliable pipeline of rare earth oxide feedstock, and while it has upstream capability at Mountain Pass, questions remain about whether that will scale fast enough. Labor and permitting hurdles in both California and Texas could delay full ramp-up. And there's the broader question of how quickly defense and OEM contracts can be converted into long-term offtake agreements. As of mid-July 2025, Beijing has remained quiet. No official response from the Chinese government or state media has been issued in response to the Pentagon-MP announcement. That silence is notable. In 2024, Chinese officials warned against 'artificially constructing supply chains' without China. That language has not been repeated publicly this year. But observers note that China's influence remains concentrated in refining, oxide conversion, and separation, areas where Western capacity still lags. Any serious U.S. effort to localize rare earths will inevitably collide with these structural realities, and Beijing may yet respond through informal levers like export permit delays or price manipulation. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
5 days ago
- Business
- Bloomberg
The Fed Isn't a Popularity Contest
Why economists say independence matters. Plus: Who's running Myanmar's rare-earths mines. President Donald Trump posted again this morning on Truth Social about his desire for interest rates to be much lower than they are now, and calling the Fed chair names along the way. Stacey Vanek Smith, co-host of the Everybody's Business podcast, writes today about why Jerome Powell can just turn the other cheek. Plus: A rebel army is supplying essential minerals to manufacturers around the world, and a small business is behind a lot of the sparkly faces at concerts and sporting events this summer. If this email was forwarded to you, click here to sign up.
Washington Post
5 days ago
- Business
- Washington Post
China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls
BANGKOK — China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. U.S. export controls on Ascend chips made by Chinese tech giant Huawei Technologies have hurt the interests of Chinese companies, Wang told reporters in Beijing. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said.
South China Morning Post
5 days ago
- South China Morning Post
China exposes foreign spy tactics to steal rare earths by post
Foreign spies have been using China's postal system to 'steal' rare earths , the country's top security agency has warned, adding that it is cracking down on the smuggling channels. In a statement posted on its social media account on Friday, the Ministry of State Security cited various tactics used by an unnamed country that it said could not produce its own rare metals and was stealing the minerals to shore up its own supplies. The ministry said it had discovered that a foreign contractor had been shipping the restricted materials by packaging them with fake labels, falsifying the product names or sending the material through express delivery packages. It had also routed the packages through intermediary countries before sending them on to their final destinations, a method known as transhipping. The ministry and other departments had since cut off the smuggling, 'effectively safeguarding China's resources and national security', the statement said. Other spies have bypassed China's export controls by declaring high-purity rare earths, such as dysprosium and terbium, as low-value products like nickel powder. 03:25 New CIA videos seek to lure Chinese officials to leak secrets to US New CIA videos seek to lure Chinese officials to leak secrets to US The ministry said rare earth materials were also being stashed in mannequins or mixed with ceramic tile material so they could be smuggled out of the country.
