Weekly News Review April 13 – April 19 2026

This week, Europe’s rare earth vulnerability came into sharp focus: China’s export figures for March confirmed the ongoing supply squeeze, Germany’s import data laid bare the continent’s continued dependence, and the EU launched its long-awaited joint procurement platform for critical raw materials.

EUROPE: HEAVY RARE EARTHS FROM ESTONIA –

Neo Performance Materials has commissioned a new production line for the separation of heavy rare earth elements at its facility in Estonia. According to a press release from the Canadian company, the plant is already operating at its planned full capacity. However, further work is currently being carried out to optimize process stability and product purity before regular commercial production begins.

Terbium and dysprosium have been successfully extracted. At this stage, both elements are available as liquid chemical intermediates (“process solutions”) and will undergo additional processing steps to be converted into pure metals. These rare earth elements are essential for the production of high-performance magnets. China remains the dominant global producer and imposed strict export controls in April of last year.

Neo Performance Materials already operates a light rare earth refinery in Estonia and has been running a permanent magnet manufacturing facility since September 2025. This positions the company to potentially play a key role in securing supply for European industry.

The company did not disclose the origin of the raw materials used. Typically, however, Neo processes imported rare earth carbonates sourced from international supply chains at its Estonian operations.

GERMANY: RARE EARTH IMPORTS UP YEAR ON YEAR –

Rising demand highlights ongoing dependence on foreign supply—especially from China.

In 2025, Germany imported nearly 5% more rare earths than in the previous year, underscoring the growing importance of these critical raw materials. Import volumes rose from 5,200 to 5,500 tons, according to newly published data from the Federal Statistical Office (Destatis).

However, the share of imports from China declined. While more than 65 percent of Germany’s rare earth imports came from China in 2024, the figure dropped to just under 55 percent in 2025. Even so, Germany still accounted for nearly five percent of China’s total exports of these materials last year. China continues to dominate global production, and particularly the processing of rare earths by a wide margin.

In 2025, Germany sourced 20 percent of its rare earth imports from Austria and nearly 11 percent from Estonia, Destatis reported. However, the agency noted that the original source of these materials cannot be statistically determined, as both countries primarily act as processing hubs rather than primary producers.

High Import Dependence Across the EU:

Like Germany, the European Union also relied heavily on imports from China in 2025. According to Eurostat, the EU imported 15,100 tons of rare earths last year, with nearly 47 percent originating from China. Russia followed with just under 26 percent, and Malaysia accounted for 23 percent.

To reduce this dependency and strengthen raw material sovereignty, the EU introduced the Critical Raw Materials Act nearly two years ago. The legislative package includes measures to expand domestic mining and recycling capacities by 2030. However, a recent report by the European Court of Auditors found that the bloc has made limited progress in achieving these objectives.

EUROPE LAUNCHES JOINT PROCUREMENT PLATFORM :

The European Union is stepping up efforts to secure strategic resources by pooling demand across member states.

The European Commission officially launched its platform for the joint procurement of raw materials on Monday. The aggregation of demand forms part of the practical implementation of the Critical Raw Materials Act (CRMA), adopted in May 2024. A comparable mechanism for the joint purchase of hydrogen was introduced last July.

The EU expects the new platform to strengthen the negotiating position of European companies on global markets. By coordinating purchases, the initiative aims to achieve more favorable pricing and more stable supply conditions. The focus is on rare earth elements and materials critical to the defense and battery industries.

The Commission’s procurement process is organized in rounds, with companies able to register for the first round as of yesterday. Results will be shared with participants at the end of each round, with initial outcomes expected in September, according to Reuters.

Industry stakeholders had already voiced criticism when the CRMA was adopted, pointing to company-specific differences in raw material requirements that may limit the effectiveness of joint purchasing mechanisms.

CHINA: RARE EARTH EXPORTS DECLINE IN MARCH –

China’s exports of rare earths fell sharply year-on-year in March. According to customs authorities, shipments dropped by just over 27 percent to 4,111 metric tons. A year earlier, exports had been significantly higher at 5,666 metric tons—a figure that itself stood well above the levels recorded in 2024 (4,710 metric tons) and 2023 (4,845 metric tons).

Detailed data on the composition of exports are expected to be released next week.

UNITED STATES: $5 MILLION FOR DOMESTIC GALLIUM PRODUCTION –

The U.S. government is supporting new technologies to restore domestic production of the critical raw material after nearly 40 years.

The U.S. Department of Energy is allocating $5.4 million to boost gallium production. The funding will support five projects by domestic companies aimed at recovering gallium as a byproduct from new or existing industrial processes. Among the selected initiatives is the aluminum producer Atlantic Alumina Company in the state of Louisiana. Earlier this year, the U.S. government took a stake in the company to help finance the construction of the first large-scale domestic gallium production facility.

According to Deputy Energy Secretary Audrey Robertson, the chosen projects are expected to reestablish domestic gallium manufacturing through innovative approaches after a gap of almost four decades.

The “Technology for Recovery and Advanced Critical-material Extraction – Gallium” (TRACE-Ga) program, announced last fall, represents the largest nationwide initiative focused on this material to date. Previously, the government had supported individual efforts, such as a process developed by an Australian company to recover gallium from electronic and industrial waste using extreme heat.

Gallium is a key material for numerous civilian and military applications, particularly in the semiconductor industry. The United States currently relies entirely on imports. Supply concerns intensified further when China, the world’s leading gallium producer, introduced strict export controls on the material in summer 2023.

INTERNATIONAL MONETARY FUND: SUPPLY DISRUPTION IN RARE EARTHS WEIGH ON ECONOMIC GROWTH –

World Economic Outlook presented; rare earth industry dominated by neodymium, praseodymium, dysprosium, and terbium.

The International Monetary Fund (IMF) this week presented its latest World Economic Outlook. It forecasts moderate global economic growth of around 3.1% for the current year, which is expected to be dampened by the war in the Middle East through higher energy prices and rising inflation. Emerging markets and resource-importing economies are coming under pressure.

Overall, downside risks currently dominate, according to the authors. Political tensions and shifts in trade policy are increasingly interacting and reinforcing uncertainty. An additional source of conflict arises from the growing strategic importance of rare earth elements, which play a central role in global supply chains. The IMF dedicates a separate chapter to the risks associated with disruptions in the supply of this group of raw materials.*

Significant Declines in GDP Threatened:

The IMF’s model simulations show that the economic consequences of such supply disruptions depend heavily on the extent to which rare earths can be substituted. In the short term, when companies have only limited substitution options, economic losses could be substantial. In the United States, gross domestic product could decline by around 1.5%, while Germany could face a decrease of approximately 1.2%.

Neodymium, praseodymium, dysprosium, and terbium are of economic importance. These four elements, which are essential for permanent magnets, account for 96% of the total market value of rare earths, the authors note.

As a response to the high concentration of supply, countries and companies are pursuing various adjustment strategies: stockpiling can cushion short-term shortages but does not eliminate structural dependency. Recycling offers long-term potential, but at present cannot meet growing demand. Large-scale substitution remains limited due to the unique technical properties of high-performance magnets. As a result, diversification of imports and the reshoring of production are gaining importance. However, their implementation is hindered by long lead times, coordination challenges, and shortages of skilled labor.

*The full economic outlook will be published at the end of April on the IMF’s website.

USA RARE EARTHS REPORT FIRST PRODUCTION OF YTTRIUM METALS:

USA Rare Earth (USAR) announced on Wednesday the first commercial production of yttrium metal. The production took place via its British subsidiary Less Common Metals, based in Ellesmere Port in northwest England. CEO Barbara Humpton described this as a milestone, noting that the rare earth element yttrium has so far been produced almost exclusively in China.

While other mining companies, such as Lynas in Australia, already operate or are planning oxide processing, the downstream processing into alloys and metals in particular is a stage of the value chain that is almost entirely dominated by Chinese companies. With the acquisition of Less Common Metals last autumn, USAR secured this know-how. The planned production of rare earth magnets and the extraction of the required raw materials from its own Round Top deposit in Texas are intended to complete the value chain. USAR also aims to strengthen its market position through its recent investment in the French company Carester. Its competencies include the separation, processing, and recycling of rare earths.

Yttrium is used in various civilian and military high-tech applications, including lasers, LEDs, and thermal barrier coatings, for example, in energy supply and aerospace. It is one of the seven rare earth elements that China, the main producer, imposed strict export restrictions on a year ago. This has had noticeable effects on global supply: in addition to fluctuating export volumes, yttrium has seen significant price increases.