Weekly News Review March 16 – March 22 2026

China released detailed export data for January and February this week, offering insight into trade flows after no report was issued last month due to the Chinese New Year holiday. Meanwhile, Australia’s Lynas announced a major agreement with the U.S. Department of Defense, while the U.S. Department of Energy unveiled a $500 million investment in domestic critical mineral supply chains.

AUSTRALIA: LYNAS ANNOUNCES SUPPLY AGREEMENT WITH THE PENTAGON –

Deal over 4 years for light and heavy rare-earth oxides, including a price floor.

Australian mining company Lynas Corporation and the U.S. Department of Defense have signed a memorandum of understanding to supply rare earth elements. Under the agreement, the Pentagon will invest approximately $96 million over 4 years to purchase both light and heavy rare-earth oxides. A minimum price has also been set for neodymium-praseodymium (NdPr), a precursor for the production of industrially critical permanent magnets. The two partners are in further discussions regarding additional supply agreements.

The newly established minimum price matches the one Lynas agreed with its Japanese customer, Japan Rare Earth, last week for neodymium-praseodymium (NdPr) (PDF). At the same time, it aligns with an existing 10-year price guarantee between the U.S. Department of Defense and the largest domestic rare-earth producer, MP Materials. The Pentagon made headlines in July 2025 with its investment in the company.

Following this, other Western countries considered introducing price floors for critical minerals sourced outside China to enhance competitiveness. Lynas has been in dialogue with various governments regarding this, CEO Amanda Lacaze stated a little over two months ago.

Original Pentagon Deal Adjusted – Likely No U.S. Refinery:

Lynas is the largest rare earth producer outside China. Its raw materials from the Mt Weld Mine are processed in Malaysia, but increasingly also domestically in Australia. The original plan, supported by the Pentagon, included constructing a separation plant for heavy rare-earth elements in Texas. However, uncertainties surrounding this project have been repeatedly reported. Against this backdrop, both parties adjusted their plans, resulting in the new memorandum of understanding, Lynas notes.

UNITED STATES: $500 MILLION FOR RARE EARTHS SUPPLY CHAIN:

Washington’s latest effort to reduce reliance on Chinese supplies.

The U.S. Department of Energy has announced up to $500 million in funding to expand domestic processing of critical minerals and strengthen the U.S. battery supply chain.

The funding will support projects focused on mineral processing, battery materials manufacturing, and recycling. Energy Secretary Chris Wright said the program aims to reinforce industries linked to national security, transportation, manufacturing, and power infrastructure, while helping the United States meet rising energy demand and compete in emerging technologies.

The funding round will support facilities that process raw materials, recover minerals from scrap or end-of-life batteries, and manufacture battery components, with the goal of building a fully domestic supply chain.

The initiative marks Washington’s latest effort to reduce reliance on Chinese imports. China dominates global supply chains for many critical minerals, particularly in refining and downstream processing, giving Beijing significant influence over materials essential for batteries, defense systems, and advanced technologies. With export restrictions imposed on numerous critical minerals, supply chains have become increasingly strained.

Other investments include a major push for a national stockpile dubbed “Project Vault” and increased cooperation with allied nations rich in raw materials, for example, Uzbekistan.

JAPAN’S TOYOTA JOINS RARE EARTH PROJECT IN NAMIBIA:

Japan seeks to bolster its critical mineral supply chains.

Toyota Tsusho Corporation, the trading arm of the Toyota Group, said on Wednesday it will participate as a joint development partner in a rare earth project in Namibia led by the Japan Organization for Metals and Energy Security (JOGMEC), as Japan moves to strengthen supply chains for critical minerals.

The project, located in Namibia’s Lofdal region, focuses on heavy rare earth elements, including dysprosium and terbium. These elements are essential components to manufacture high-performance permanent magnets used in electric vehicles, wind turbines, and advanced electronics. Exploration has been underway since 2020, and a preliminary feasibility assessment was completed earlier this year.

Toyota Tsusho is a major Japanese trading house involved in metals, energy, chemicals, and automotive supply chains, and has existing operations in rare earth refining and magnet materials used in electric vehicles and industrial equipment. The firm will join the commercialization study and may take over part of JOGMEC’s equity options, with a final investment decision expected by mid-2026.

JOGMEC, a Japanese government-backed agency tasked with securing stable supplies of energy and mineral resources for the country, has been promoting overseas resource development projects since the 2010s to reduce Japan’s dependence on a limited number of suppliers. The Namibia project also follows a 2023 cooperation agreement between Japan and Namibia on rare-earth exploration and supply-chain development.

AUSTRALIA : LYNAS EXPANDS PORTFOLIO WITH SAMARIUM OXIDE PRODUCTION:

Lynas is steadily broadening its product range.

After producing dysprosium oxide and terbium oxide for the first time last year, the Australian rare earths company has now announced the successful production of samarium oxide. This makes Lynas the first supplier outside China to combine an independent primary resource base with in-house separation capabilities. Processing takes place at the company’s facility in Malaysia.

One of the key applications for samarium is in high-performance magnets. Samarium-cobalt magnets retain their magnetic strength even at temperatures of around 300 °C, making them particularly valuable for demanding environments, including military and aerospace applications.

According to the company, Lynas could further expand its rare earths offering to include europium, holmium, ytterbium, and erbium, provided market conditions are favorable — specifically if long-term offtake agreements with industrial customers are secured.

CANADA: NEO PERFORMANCE MATERIALS INCREASES PROFITABILITY:

Expansion of heavy-rare-earth separation in Estonia moves forward.

Neo Performance Materials has published results for the fourth quarter and full year 2025. While the final quarter was marked by declining revenue, the full-year figures show improved profitability.

Revenue in the fourth quarter totaled $120.3 million, below the level recorded in the same period last year. Operating income also declined significantly. On a full-year basis, however, the Canadian company achieved slight growth and, more importantly, improved profitability. Adjusted EBITDA rose to $75.6 million, while net income increased substantially.

Strategically, the company continues to expand its value chain outside China. Key initiatives include expanding magnet production in Europe and further investing in processing heavy rare earth elements in Estonia. Neo already operates a light rare earth refinery there and has been operating a permanent magnet manufacturing facility since September 2025. The sale of its Chinese rare earth separation assets last year underscores this strategic realignment.

For 2026, Neo remains cautiously optimistic and expects adjusted EBITDA in the range of USD 75–80 million, roughly in line with the previous year.

CHINA: EXPORTS OF DYSPROSIUM AND TERBIUM DOWN SIGNIFICANTLY SINCE THE START OF THE YEAR:

Since April 2025, China has maintained strict regulations on the export of dysprosium, terbium, and other rare-earth elements. As a result, less material is reaching international markets, as reflected in the latest export statistics for January and February. Compared to the previous year, dysprosium exports fell by almost 75 percent in January, totaling just 6,182 kilograms. Vietnam was the largest recipient, followed by South Korea and Estonia. Notably, no shipments were recorded in February.

Terbium exports also declined from January 2025, down nearly 35 percent. In February, only 500 kilograms were exported, a 87 percent year-on-year decrease. In January, South Korea received the majority of terbium exports, followed by Vietnam, Estonia, and Germany. By February, Estonia was the sole recipient, with a value chain for rare-earth magnets currently in development.

Both dysprosium and terbium are critical for enhancing the performance of high-strength magnets. Interestingly, Japan did not appear on the recipient list in either month. At the beginning of the year, the Chinese government tightened export controls on dual-use goods to Japan, likely in response to escalating political tensions. These regulations, primarily targeting Japan’s defense sector, could now also affect the broader high-tech industry.

GALLIUM AND GERMANIUM: CHINA CUTS JAPAN OFF –

Chinese customs on Friday published detailed trade data for January and February, revealing a significant shift in the supply of the technology metals gallium and germanium. Japan has effectively been cut off from both metals following Beijing’s tightening of controls on dual-use goods to the neighboring island nation. Although China stated that restrictions would target military end users only, the practical effect, a full export halt to Japan, now threatens to impact the country’s entire high-tech industry. In 2025, Japan was the leading destination for Chinese gallium exports and among the top destinations for germanium. Both metals are used in semiconductors and other advanced electronics manufacturing, for example.

Data on actual shipments shows Germany as the sole recipient of gallium in both January and February, receiving 6,000 kg and 5,000 kg, respectively. Germanium exports experienced a sharp decline in January, totaling just 93 kilograms, a drop of roughly 95% compared to the same month last year. Shipments were sent to Kazakhstan, South Korea, Türkiye, and Taiwan. In February, exports rebounded to 736 kilograms, with Russia receiving the bulk at 600 kilograms, followed by smaller shipments to Thailand, South Korea, and Italy.

China introduced export controls for gallium and germanium in 2023 due to their potential military applications. Since then, monthly trade volumes have fluctuated significantly, with shipments increasingly dependent on licensing approvals and political relations with importing countries.

EXPORTS OF RARE EARTH MAGNETS RISE AT THE START OF THE YEAR:

Chinese customs authorities released data on the export of rare earth magnets on Friday. In January, shipments totaled 6,024 tons, roughly matching the previous year’s level. Germany received over 20 percent of this volume, while smaller quantities were sent to South Korea, the United States, and Vietnam.

In February, exports increased by more than 30 percent year-on-year to 4,739 tons, distributed across the same recipient countries as in January. Unlike dysprosium and terbium, Japan received rare earth magnets in both months, with volumes remaining steady at approximately 220 tons, similar to the previous year.