Weekly News Review January 19 – January 25 2026

New export figures from China have once again highlighted the volatility of the commodity markets this week. Headlines were also made by takeover plans from the US company Energy Fuels and a draft law from the EU.

CHINA: EXPORTS OF DYSPROSIUM AND TERBIUM DECLINE SHARPLY IN 2025 AS DESTINATION MARKETS SHIFT:

New data from China’s customs authorities show that exports of dysprosium rose markedly in December. A total of 4,120 kilograms were shipped abroad, compared with only 995 kilograms in the previous month. Japan was the leading destination, followed by South Korea and Malaysia.

Looking at the full year 2025, however, exports of this rare earth element fell by 35 percent. The decline primarily affected Japan, which received 95 percent less material than in 2024. South Korea, by contrast, more than tripled its import volume.

Exports of terbium continued their downward trend. After 4,045 kilograms in November, China delivered only 2,123 kilograms to foreign customers in December. Japan, followed by South Korea and Germany at a considerable distance, was the most important destination country. For the year as a whole, terbium exports also declined by 38 percent, an even steeper decline than for dysprosium.

Both raw materials are essential for modern magnet technologies. Since April, they have been subject to export restrictions, which have significantly affected market availability.

EUROPE: EU TO UNVEIL ‘MADE IN EUROPE’ LAW TO BOOST DOMESTIC PRODUCTION:

The draft includes provisions on foreign investment, local content requirements, and the stockpiling of critical minerals.  

The European Commission is set to present its Industrial Accelerator Act (IAA) on 28 January, according to the official legislative train. The new law is aimed at steering investment toward European manufacturers and strengthening the bloc’s industrial base amid global competition. Central to the proposal is a “Made in Europe” approach that would link EU funding and public procurement to domestic production. Media reports suggest Brussels is considering local content requirements of 60–80% when European money is used, echoing the United States’ “Buy American” policy. The draft also proposes stockpiling critical raw materials to bolster the EU’s preparedness for future supply crises.

A draft seen by Bloomberg News also indicates that foreign investments above €100 million could face conditions such as mandatory technology sharing, local hiring, and joint ventures with EU firms, measures intended to ensure strategic projects deliver benefits within Europe.

The push reflects growing concern over Europe’s industrial decline. Supporters argue that stronger preferences for European suppliers are needed to protect key sectors such as steel, aluminum, and clean technologies. However, the plan has met resistance from several member states. Finland, Sweden, and Ireland have cautioned that strict domestic quotas could distort the single market and raise prices, while Poland and the Netherlands are demanding a full impact assessment before any targets are set, Euronews reports.

The legislation would complement recent EU efforts to strengthen economic security and reduce strategic dependencies, including tougher screening of foreign direct investment and the new RESourceEU plan to secure critical raw materials, both announced in December. Several steps have also been taken in recent months toward establishing EU reserves of raw materials.

CHINA: RARE EARTH MAGNET EXPORTS REMAIN STABLE IN 2025 DESPITE MARKET VOLATILITY –

Year-end surge helped offset disruptions earlier this year.

China’s exports of rare earth magnets remained largely stable in 2025, even as the market was shaped by new regulatory requirements and fluctuations. According to the latest customs data, total shipments for the year reached 57,794 metric tons, only slightly below the 58,142 tons recorded in 2024, representing a modest decline of about 0.6 percent.

The year ended on a strong note. In December, export volumes reached 5,952 tons, only slightly below November’s volume. As in previous periods, the main destination countries were leading automotive manufacturing hubs with substantial demand for permanent magnets. Germany headed the list with 1,106 tons in December, followed by South Korea with 815 tons and the United States with 564 tons. Further significant deliveries went to Vietnam at 509 tons and Japan at 280 tons.  

The increase in exports towards year-end offset temporary disruptions caused by export control measures introduced by Beijing, particularly affecting products containing dysprosium and terbium. Market participants report that administrative processes gradually improved toward year-end, enabling exporters to clear backlogs and fulfill pent-up orders.

CHINA’S GERMANIUM EXPORTS SLUMP YEAR ON YEAR – GALLIUM EDGES HIGHER:

Geopolitical tensions and export controls imposed by China, the world’s largest producer, continue to shape the volatile market.

After China’s gallium exports collapsed by 53 percent in November, shipments rebounded strongly in December. At 10,809 kilograms, exports were almost 49 percent above the previous month’s level, according to figures released by the Chinese customs administration on Tuesday. As in November, the bulk of the material was delivered to Japan, followed by Slovakia and Estonia.

Germanium showed the opposite trend: Chinese exports of the metal fell by 44 percent in December. The list of recipient countries remained largely unchanged, with Russia taking the largest share of deliveries, followed by Germany.

China is the world’s leading producer of both technology metals and placed its export under strict licensing requirements in the summer of 2023, citing the potential military use of the materials. The extent to which this policy continues to affect global availability, particularly of germanium, is most evident in the year-on-year comparison. Exports in 2025 were almost 60 percent lower than in 2024. As early as last summer, raw materials expert Dr. Christian Hell warned that the market was effectively missing an entire year’s worth of global germanium production.

Japan imported more gallium in 2025 – this could change in 2026:

Gallium exports, by contrast, rose slightly from 60,880 kilograms in 2024 to 62,615 kilograms in 2025. However, noticeable shifts occurred in key markets: South Korea received significantly less material than the year before, while Japan expanded its imports.

This trend could reverse this year. In early January, China tightened export controls on dual-use goods—including gallium and germanium, destined for Japan, amid growing tensions between the two countries.

EUROPE: OVR 160 APPLICATIONS SUBMITTED FOR STRATEGIC METALS PROJECTS –

In the first call, 60 projects were already selected. Under the EU Critical Raw Materials Act, these projects can benefit from faster approvals and easier access to funding.

The Critical Raw Materials Act (CRMA), which came into effect in 2024, aims to secure the EU’s supply of raw materials on a more reliable basis. Alongside targets for domestic mining, strategic projects are a core element of the legislation. These initiatives, covering extraction, processing, recycling, or substitution of critical raw materials, can benefit from accelerated permitting procedures and support in accessing finance.

In 2025, 60 projects were selected both within the EU and abroad. The second call has now closed, with the European Commission reporting that over 160 applications have been submitted. In the first round, there had been 170 applications. The consistently high number of submissions highlights the continued interest in achieving “Strategic Project” status, according to the Commission.

The December launch of the RESourceEU plan, which, for the first time, specified a concrete funding amount, further increased attention.

Of the submitted projects, 75 focus on the battery value chain, 21 on rare earths for permanent magnets, and several are linked to defense applications.

Overall, 95 applications come from EU countries and 66 from non-EU countries.

All projects will now be evaluated with the input of independent experts before the Commission discusses the results with the member states.

AUSTRALIA: LYNAS INCREASES REVENUE DESPITE PRODUCTION DECLINE –

Leading rare earths producer outside China reports quarterly results.

Australian mining company Lynas released its quarterly results (PDF) for the period ending December 31 on Wednesday. The world’s largest rare earths producer outside China reported an increase in revenue, even though production was approximately 30 percent below the previous quarter’s level. The shortfall was partly due to power outages at Lynas’ processing facility in Kalgoorlie, Western Australia.

Despite the production decline, revenue rose slightly from the previous quarter to US$136.08 million. Compared with the same period last year, revenue increased by 43 percent. Lynas attributed the growth in part to higher prices for the magnet material neodymium-praseodymium (NdPr).

According to CEO Amanda Lacaze, recent U.S. government measures have already influenced market dynamics. Last summer, the Pentagon became the largest shareholder of the leading domestic rare earths producer, MP Materials, and entered into an offtake agreement with price guarantees. Following this, the G7 nations and Australia are currently considering introducing price floors for critical minerals sourced outside China. Lacaze said Lynas is engaged in ongoing discussions with various Western governments on this issue.

Lynas to Expand Production of Heavy Rare Earths:

Lynas said revenue growth in the past quarter was also supported by new contracts involving the sale of dysprosium-terbium (DyTb).

These heavy rare earths currently command significantly higher prices than NdPr because they are essential for high-performance permanent magnets. At the same time, they are almost exclusively produced for commercial purposes in China and have been subject to strict export controls there since early April. Lynas is currently expanding its capacity to produce these and other critical rare-earth elements, including samarium, at its Malaysian facility.

On the less positive side, Lynas reported ongoing uncertainty about its planned U.S. heavy rare-earth processing plant. The project, to be realized with support from the U.S. Department of Defense, remains subject to considerable uncertainties about its future.

USA: ANOTHER US COMPANY PLANS RARE EARTH REFINERY IN SAUDI ARABIA –

US Strategic Metals announces partnership. Raw materials will come from regional sources, while processed products are intended for the U.S. and its allies.

US Strategic Metals (USSM) plans to produce critical minerals, including cobalt, nickel, lithium, copper, and rare earth elements, using its proprietary technology. The raw materials will come from the company’s own mine in the U.S. state of Missouri.

Now, USSM’s refining technology is set to be deployed in Saudi Arabia, where a corresponding facility is planned. The project is based on an agreement with the National Industrial Development Center (NIDC), a government agency under Saudi Arabia’s Ministry of Industry and Mineral Resources that promotes investment in the country.

According to USSM, the plan is to process raw materials from regional sources such as Africa and Pakistan, with the finished products destined for the U.S. and its allies.

The agreement also includes the use of Ionic Rare Earth’s rare earth magnet recycling processes, with which USSM has recently formed a collaboration.

Saudi Arabia Positions Itself as a Hub for Critical Mineral Processing:

The partnership between USSM and NIDC was signed last week at the Future Minerals Forum in Riyadh, Saudi Arabia’s capital, which is now an important industry event. The kingdom aims to diversify its economy, which has so far been largely dependent on oil and gas exports, and place a stronger emphasis on critical minerals. This includes developing its own mineral resources and investing in the processing of imported materials.

The number of such partnerships is growing. Just last week, the U.S. mining company Critical Metals Corp. announced plans to process rare earths from Greenland in Saudi Arabia. In November, the state-owned Saudi mining company Ma‘aden and MP Materials, the largest U.S. producer of rare earths, revealed plans for a joint refinery. Shortly before that, the U.S. and Saudi Arabia agreed to deepen their cooperation on critical minerals.

ENERGY FUELS USA TO ACQUIRE AUSTRALIA’S STRATEGIC METALS:

According to the company, the transaction would create the largest producer outside China, covering the full mine-to-metal supply chain.

Energy Fuels, a U.S. producer of uranium and rare-earth elements, plans to acquire Australian mining company Australian Strategic Materials (ASM). The transaction is valued at approximately US$300 million.

ASM operates a facility in South Korea that produces rare-earth metals and alloys, and a second such facility is planned in the United States. Both are set to be integrated with Energy Fuels’ White Mesa facility in Utah, where, in addition to uranium, rare earth oxides are produced. In June 2025, production of heavy rare earths began at White Mesa, a resource in particularly high demand for both civilian and military applications.

Through the acquisition, Energy Fuels aims to become the largest producer outside China, spanning the entire mine-to-metal value chain. As many countries seek to reduce their reliance on Chinese imports, the company intends to fill a critical gap in global supply chains. To date, refining heavy rare earths and converting them into metals and alloys has been carried out almost exclusively in China.

Feedstock to Come from Australia, Madagascar, and Brazil:

The raw material for the planned value chain is expected to come from multiple sources. In addition to ASM’s Dubbo rare earth project in New South Wales, Australia, this includes deposits developed by Energy Fuels—some in partnership—such as Donald in Victoria, Australia, Vara Mada (formerly Toliara) in Madagascar, and Bahia in Brazil. These are primarily deposits where rare earths are extracted from monazite sands.

In April 2024, Energy Fuels announced its ambition to become a “global leader” in the rare-earth industry. At that time, it also acquired Base Resources, an Australian rare earth company, integrating its Madagascar project into Energy Fuels’ supply chain.