Weekly News Review February 17 – February 23 2025

Welcome to our weekly news review. 

The week saw increasing pressure on global raw material supply chains, with China tightening its grip on rare earths and the EU facing tensions over its partnership with Rwanda. Meanwhile, the only rare earth miner in the United States, MP Materials, reported figures for the fourth quarter.

CHINA TIGHTENS GRIP ON RARE EARTH INDUSTRY:

The Chinese government seeks to tighten its control over the domestic rare earth industry further through a set of regulations published Wednesday by the Ministry of Industry and Information Technology. The proposal outlines a traceability system for the sector to provide the government with additional information regarding rare earths’ origin, supply chain, and export. In addition, the draft also clarifies that only authorized enterprises may obtain quotas to mine and process rare earths. Other provisions include monthly data provisions from rare earth enterprises and random inspections to advance the sector responsibly. 

China’s Rare Earth Dominance:

The proposed traceability system also briefly mentions export licenses, which have not been enacted for rare earth materials, only for certain related technologies. In comparison, since 2023, exporters of the metals gallium, germanium, and antimony must obtain official licenses to ship goods abroad.

China dominates the global rare earth industry, accounting for approximately 60% of worldwide production and up to 95% of downstream processing. As a result, any licensing requirements could significantly disrupt global supply chains. 

Through a series of industry consolidations, China’s rare earth sector has been streamlined to just a few key players, with only two major companies dominating the mining segment, for example. This consolidation was driven, in part, by the government’s strategy to exert greater control over the industry.

UNITED STATES: RARE EARTH MINER MP MINERALS RELEASES FINANCIAL STATEMENTS –

On Thursday, MP Materials released its financial results for the fourth quarter. The U.S.-based company specializing in extracting and processing rare earth elements reported another net loss. This loss increased by nearly 38% compared to last year’s period, primarily due to business expansion and technological development expenses. However, revenue saw a significant year-over-year increase of almost 50%, reaching $61 million.

Revenue declined by 20% in the full year 2024 compared to 2023. MP Materials attributed this drop to lower selling prices for its products. Additionally, the company ramped up production of separated rare earth elements, reducing the availability of upstream materials (rare earth concentrates) for sale.

In January, MP Materials announced progress in establishing rare earth magnet production. This development could eventually enable the company to manage the entire supply chain within the United States, from mining to finished magnets.

SOUTH KOREA LAUNCHES FUND TO STABILIZE STRATEGIC METALS SUPPLY:

The government in Seoul seeks to collaborate with the private sector to strengthen the supply chains of critical minerals essential to South Korea’s high-tech industries. On Tuesday, the Critical Mineral Investment Council held its inaugural meeting, discussing strategies for promoting domestic and international investments in the field.

According to a press release by the Ministry of Trade, Industrie and Energy (MOTIE), the council will establish a comprehensive public-private support system to advise on project financing and provide consulting aid. In addition, the council plans to launch a unique supply chain stabilization fund to catalyze $34.7 million (50 billion won) in public-private investments annually.

The government in Seoul launched the council in December, bringing together different government agencies and public and private institutions to strengthen critical mineral supply chains. This initiative aligns with South Korea’s role as chair of the Minerals Security Partnership (MSP), which it holds until June. The MSP is a transnational association aimed at bolstering supply chains of key raw materials.

INDIA AND SRI LANKA DISCUSS STRATEGIC METALS COOPERATION:

Sri Lanka is rich in mineral sands, which contain various critical minerals.

India and Sri Lanka seek to bolster cooperation in critical minerals from exploration to mining. According to a joint press release, Indian Union Minister of State for Coal and Mines Satish Chandra Dubey and Sri Lanka’s Industry and Entrepreneurship Development Minister Sunil Handunnetti met on Saturday to discuss bilateral cooperation, particularly in securing critical minerals essential for economic and industrial growth.

The press release highlighted that Sri Lanka’s graphite and mineral sand resources were a core topic of the discussion. Mineral sands are deposits that form primarily on beaches due to the specific gravity of the mineral grains. They are a significant source of zirconium, titanium, rare earths, and other critical minerals.

Other examples of mineral sand occurrences include the island nation of Madagascar on the other side of the Indian Ocean. Here, U.S.-based company Energy Fuels is developing the Toliara mineral sands project, for which the government recently lifted the suspension.

India Seeking New Sources of Raw Material Supplies:

Less than a month ago, India’s Union Cabinet approved the launch of the National Critical Mineral Mission, an initiative to ramp up the country’s presence in the critical mineral value chain, both domestically and internationally. The initiative is backed by nearly $2 billion in funding. As part of the push, India also seeks to deepen partnerships with international partners, including the United States and Saudi Arabia.

India is already finalizing a Memorandum of Understanding on “Cooperation in the Field of Geology and Mineral Resources ” with Sri Lanka, which could form the basis of further joint work in the field.

EU CALLS FOR SUSPENSION OF STRATEGIC METALS PARTNERSHIP WITH RWANDA:

Lawmakers cite evidence of interference in the conflict in the neighboring Democratic Republic of the Congo.

The European Union relies on a wide range of resources for its industry, many of which are produced in only a few countries—notably China. The EU is pursuing domestic mining expansion and partnerships with resource-rich nations to diversify its supply base. Nearly a year ago, the EU signed a Memorandum of Understanding (MoU) with Rwanda for cooperation on raw materials deemed critical to the European economy. However, this agreement is now under scrutiny, as the EU Parliament voted overwhelmingly last week to suspend it.

Lawmakers cite substantial evidence of Rwandan troops operating in the neighboring Democratic Republic of the Congo (DRC) and supporting the rebel group M23, which faces accusations of war crimes. Additionally, Rwanda is alleged to be exporting minerals originating from rebel-controlled areas of the DRC.

These regions are rich in tin, tungsten, tantalum, and gold. This development puts the EU in a difficult position, as it has also announced a raw materials partnership with the DRC. Meanwhile, NGOs have been calling for the termination of the Rwanda partnership since early February.