Weekly News Review May 11 – May 17 2026

The news flow remained relatively light over the course of the week, now drawing to a close, but it nevertheless provided some noteworthy signals — including from Australia. Export data from China has also been released, with further details expected next Wednesday.

CHINA’S RARE EARTH EXPORTS RISE SHARPLY IN APRIL:

In April, China exported 5,309 tonnes of rare earths, up nearly 11% from the same month last year. Exports also rose significantly from March, posting a month-on-month gain of 29%.

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

In April 2025, the Chinese government introduced export controls on seven of the 17 rare earth elements, along with a range of related compounds. Since then, exports of some of these materials have partially stalled. However, the majority of China’s rare earth exports in 2025 — as in previous years — consisted of elements not currently subject to restrictions, such as lanthanum and cerium, which are primarily used in the chemical and glass industries.

NEO PERFORMANCE MATERIALS POSTS STRONG QUARTERLY RESULTS:

Neo Performance Materials released its first-quarter results on Tuesday. The Canadian specialist in rare earth and critical materials benefited from higher revenue, significantly improved margins, and particularly strong momentum in its rare metals business.

Revenue increased to $155 million in the first quarter, up from $121.6 million in the prior-year period. Operating income rose sharply to $26.6 million. However, Neo remained in the red on a net basis, reporting a net loss of $1.6 million, compared with $1.4 million a year earlier.

The company’s Rare Metals segment was the main driver of earnings during the quarter. Revenue and profitability in the division increased substantially, supported by strong and rising prices for hafnium, gallium, and tantalum. Magnequench also delivered solid growth, driven by higher volumes and continued demand for magnetic materials from the electrification, automation, and computing infrastructure sectors. In the Chemicals & Oxides segment, revenue declined, although profitability improved significantly.

Strategically, Neo continues to expand its value chain outside China. In Europe, the company remains focused on ramping up permanent magnet production. Its facility in Estonia has now produced its millionth magnet, while the company is also evaluating a potential capacity expansion. In addition, Neo has commissioned a new processing line for heavy rare earth materials, with a particular focus on terbium and dysprosium.

AUSTRALIA: FINANCING FOR THE NOLANS RARE EARTH PROJECT TAKES PLACE –

Integrated rare earths mine in northern Australia receives government backing, including support from the German raw materials fund.

Arafura Rare Earths is making further progress on financing its Nolans Rare Earths project. The Australian company has now signed the final agreements for support worth approximately $145 million with the state-owned National Reconstruction Fund Corporation. The Nolans project is planned for the Northern Territory and is set to become Australia’s first facility to combine rare earth mining and downstream processing at a single site.

The commitment follows an agreement reached in January 2025. At that stage, only the key terms had been established; the final contracts have now been completed. The agreements also define the price at which the government support could later be converted into Arafura shares.

Combined with the binding commitments secured in April 2026 from the German raw materials fund and Export Finance Australia, the portion of financing already secured for Nolans has increased significantly. Arafura now states that the project has attracted around $659 million in equity and equity-like commitments.

However, several steps remain before full financing can be achieved. In particular, the major project loan agreements must still be finalized, shareholders must be engaged, and the conditions for a final investment decision must be met.

USA: TEXAS INVESTS MILLIONS IN RARE EARTH MINING PROJECT –

The state is supporting USA Rare Earth in expanding the Round Top Mountain deposit.

The U.S. state of Texas is providing a grant of more than $14 million to the domestic mining company USA Rare Earth. The funding is intended to support development of the Round Top Mountain mining project, located in western Texas near the Mexican border.

The site is expected to produce primarily heavy rare earth elements, which are critical to a wide range of strategic technologies. Supply security is considered a major concern because global production remains overwhelmingly concentrated in China. In addition to rare earths, the Round Top deposit contains technology metals such as gallium and lithium, an essential battery material.

The approved funding comes from the Texas Semiconductor Innovation Fund (TSIF), which aims to strengthen the state’s position in the semiconductor sector. Rare earth elements are also highly important for semiconductor manufacturing.

Materials such as yttrium and scandium are used in various production processes and in specialized chip applications. Although semiconductors currently account for a relatively small share of overall rare-earth demand, their strategic importance is increasing rapidly as AI infrastructure, data centers, and advanced defense electronics expand.

USA Rare Earth is pursuing a fully domestic supply chain for critical minerals. To expand both expertise and access to raw materials, the company has invested in and acquired additional businesses across the sector. The strategic significance Washington attaches to these plans became evident earlier this year through a direct U.S. government investment.