Weekly News Review March 17 – 23 2025

U.S. President Donald Trump aims to accelerate domestic resource production through immediate measures. Still, progress is likewise being made in other Western countries in building new production capacities for critical resources and components. However, a potential raw material cooperation between Russia and the U.S. has also made headlines.

“RESOURCE NATIONALISM” ON THE RISE:

The demand for specialty raw materials such as rare earths, cobalt, and lithium is rising. As a result, the importance of developing and emerging countries that possess these resources is also growing. However, international mining companies face increasing challenges in these nations as government interventions in the sector become more frequent, according to a strategic consultancy study by Verisk Maplecroft.

Resource-rich countries aim to benefit more from their natural wealth, but measures such as tax increases or nationalization make investments risky if the trend continues. As a consequence, disruptions in supply chains for raw materials—essential to many high-tech industries—are at risk.

Kazakhstan is among the countries with the highest risk of “resource nationalism.” At the end of 2022, the European Union signed a raw materials partnership with the Central Asian country. According to Verisk Maplecroft, Kazakhstan and Mexico have significantly increased risks over the past five years.

CANADA’S NEO PERFORMANCE MATERIALS RELEASES QUARTERLY FIGURES:

Neo Performance Materials released its financial results for the fourth quarter of 2024 and the full year 2024 on Tuesday. The Canadian manufacturer of rare earth magnets and industrial materials reported a year-over-year revenue decline of nearly 17 percent to $475.8 million. However, a slight increase was recorded compared to the fourth quarter of 2023.

Neo reported a 73 percent increase in EBITDA, earnings before interest, taxes, and depreciation, compared to the previous year. According to the company, this positive development was primarily driven by its rare earths business and magnet division.

Neo also remains on schedule with the construction of its rare earth permanent magnet factory—an industry otherwise almost entirely controlled by China. The production facility in Narva, Estonia, has already been completed, and prototype component production is set to begin in the first half of 2025. Large-scale commercial production is planned for 2026.

RUSSIA OFFERS COOPERATION TO THE UNITED STATES:

Reuters Report: Could Russia’s Sovereign Wealth Fund Partner with U.S. Companies – A Response to a Possible Resource Agreement with Ukraine?

Russia’s sovereign wealth fund plans to develop domestic rare earth deposits and seeks partnerships with U.S. companies. According to Reuters, Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), announced this on Tuesday. His statement came almost simultaneously with yesterday’s phone call between U.S. President Donald Trump and Russian President Vladimir Putin regarding a potential end to the war in Ukraine.

In this context, Trump had already proposed a resource agreement with Ukraine weeks ago, granting the U.S. access to the war-torn country’s mineral resources. In response, Russia offered the United States access to critical raw materials as well—both within its territory and in occupied Ukrainian regions.

According to Reuters, Dmitriev reiterated in a press briefing that Russia’s rare earth reserves far exceed Ukraine’s, and additional deposits are under evaluation. Data from the U.S. Geological Survey (USGS) ranks Russia as having the fifth-largest rare earth reserves in the world, though Russian estimates suggest even higher numbers.

According to USGS, Russia’s rare earth production stood at a modest 2,600 tons in 2023, compared to China’s 240,000 tons as the global leader. However, Russia is home to two of the few rare earth refineries outside China. The country had already announced plans in 2020 to become the leading producer after China. A few months ago, Putin criticized the slow development of the key Tomtor deposit and demanded increased investments (as previously.

In contrast, Ukraine has yet to extract or process rare earths, and no modern assessments of its reserves exist. Industry experts have thus questioned the economic feasibility of Trump’s proposed resource deal.

FRANCE AND JAPAN TO CO-OPERATE IN RARE EARTHS:

Southern France could become a key center for the rare earth industry by the end of next year. French company Caremag plans to build a recycling and refining facility for rare earths in the Pyrénées-Atlantiques department. As announced Monday, the French government will support the project with €106 million. Japan’s Organization for Metals and Energy Security (JOGMEC) and Osaka-based Iwatani Corporation will contribute up to €110 million.

According to Caremag, the facility is expected to produce 600 tons of dysprosium and terbium oxide and 800 tons of neodymium and praseodymium oxide annually. The project represents a significant step towards Europe’s independence in rare earths for permanent magnets, said Frédéric Carencotte, President of Caremag’s parent company, Carester. However, it remains unclear how much of the material will be supplied to European industries, as the agreement signed this week includes a long-term supply contract to provide Japan with heavy rare earths. No specific volume details were disclosed.

Figure of the Week: 21 the number of  nonfuel mineral commodities on which the U.S. is highly dependent on imports come from Canada.

US COMPANY TAKES AIM AT CHINA’S RARE EARTH MONOPOLY:

The U.S. company plans to supply raw materials for Posco’s electric motor production and support automakers in the U.S., EU, Japan, and South Korea.

The U.S. uranium and rare earth producer Energy Fuels and South Korea’s Posco aim to reduce the rare earth magnet supply chain dependency on China. In the future, Energy Fuels will supply Posco with rare earth oxides produced in the U.S., strengthening its manufacturing of critical components for electric motors. These components will, in turn, supply automakers in the U.S., EU, Japan, and South Korea. The two companies have signed a corresponding Memorandum of Understanding.

According to the press release, initial material samples have met POSCO’s specifications. Larger quantities, enough to power more than 30,000 electric vehicles, could be available later this year. The two parties aim for a long-term supply agreement.

Energy Fuels produces critical raw materials at its White Mesa Mill in Utah, Utah. The company’s annual production capacity is up to 1,000 tons of neodymium-praseodymium. Plans are in place to expand this capacity to 6,000 tons, including dysprosium and terbium, which are mainly in demand for rare earth magnets.

CEO: Closing the Critical Gap in the U.S. Market –

Energy Fuels sources its raw materials primarily from monazite sand concentrates in various countries, including its projects and cooperatively developed deposits. According to the company, its rare earth products can be produced at comparatively low costs. So far, production costs in China—where the rare earth industry has been built and subsidized for decades—are far below those in Western countries. President and CEO Mark Chalmers said the goal is to close a critical gap in the domestic market that is both competitive and shielded from geopolitical factors.

Posco is also working on building new supply chains without the People’s Republic’s involvement. As we reported earlier, the company has already formed a partnership with the U.S. firm ReElement Technologies to supply rare earths for Posco’s magnet production.

AFRICA AND UK IN THE SPOTLIGHT AND JOINING FORCES:

The British company Pensana is developing the Longonjo mine in Angola. To advance the project, the Africa Finance Corporation (AFC) and South African bank Absa have committed to a $160 million loan (PDF). The AFC is a multilateral financial institution promoting infrastructure and economic development projects across Africa. The loan, which still needs approval, will cover about 60% of the costs for the mine’s first construction phase, set to begin later this year.

The remaining funding is already secured, with total costs of $268 million. In addition to further support from the AFC, the Angolan Sovereign Wealth Fund (FSDEA) has also contributed funding.

Africa’s Untapped Potential in Rare Earths:

Africa holds vast untapped reserves of rare earths, but the sector remains underdeveloped due to a lack of investment. As a key investor, FSDEA Chairman Armando Manuel said FSDEA aims to highlight the untapped potential of Angola’s mining sector. Pensana Chairman Paul Atherley estimates that Longonjo’s future annual production will average 20,000 tonnes of mixed rare earth carbonate. A five-year non-binding off-take agreement has already been signed with the Japanese trading company Hanwa (PDF).

In addition to Longonjo, Pensana is developing the UK’s first rare earth refinery in the northeast of England (we previously reported). However, there have been no updates on this project for some time.

EUROPE AIMS FOR MORE STRATEGIC METALS AUTONOMY:

Expanding global partnerships and strengthening supply chains: The union presented several initiatives this week.

Europe heavily relies on imports of critical raw materials from just a few countries. Reducing this dependency has been on the political agenda for years, with measures such as the EU’s Critical Raw Materials Act (CRMA), introduced in 2024, to address the issue.

One of its goals is to achieve greater diversification in domestic supply chains. By 2030, no more than 65% of critical and strategic raw materials should be sourced from a single third country. The European Commission has launched a new initiative to facilitate the implementation of this target. The “Critical Raw Materials Facility” aims to improve access to resources like lithium, cobalt, nickel, and manganese by promoting international partnerships and projects.

EIT RawMaterials, a consortium focused on connecting industry and research, and InnoEnergy, Europe’s largest innovation ecosystem for sustainable energy, have been tasked with leading the facility. Experts from both organizations will identify and evaluate raw material projects in Africa, Latin America, Central and Southeast Asia, Southeast Europe, and Greenland. The collaboration is expected to benefit the European industry, partner countries, and local communities.

Steel Production and the Military:

These plans are not the only ones the EU announced this week to strengthen its competitiveness and raw material autonomy. An action plan for the domestic steel and metal industry was also introduced. In addition to ensuring a secure and affordable energy supply for the sector, the plan includes building more robust supply chains for essential materials. According to the statement, many steel alloying elements, such as aluminum, copper, and nickel, are critical raw materials and already benefit from CRMA rules, such as expedited approval processes for extraction, processing, and recycling.

Furthermore, the European Commission presented “ReArm Europe,” a plan to strengthen the union’s military capabilities in light of Russia’s threat. Since military technologies also rely on critical raw materials such as gallium, germanium, and rare earth elements, a 22-page whitepaper on European defense (PDF) outlines several measures to secure these resources. For instance, EU institutions could support the establishment of strategic reserves for the industry.

USA PUSHES FOR DOMESTIC PRODUCTION WITH SIGNING OF EXECUTIVE ORDER:

U.S. President Donald Trump aims to boost domestic production of critical resources through immediate measures. According to an executive order issued Thursday, ensuring national security requires urgent action to maximize domestic mineral production. The order allows mining and processing projects for critical resources to receive immediate approval or expedited review.

Additionally, mining on federal land will take priority over other land uses if valuable mineral deposits are present. The order also addresses financing: bureaucratic hurdles for loans will be reduced, and a dedicated fund for domestic investments in the resource sector is planned.

According to Reuters, shortly after signing the order, President Trump announced that the U.S. would soon sign an agreement on minerals and natural resources with Ukraine. The topic has recently drawn international attention.