Weekly News Review May 25 – May 31 2026

This week, it was the countries bordering the Indo-Pacific region that dominated the news on critical raw materials.  In the United States accusations of technology theft amongst US Rare Earth companies stun the industry. All this and more in our weekly news review.

UNITED STATES: MP MATERIALS AND USA RARE EARTHS CLASH OVER ALLEGED TECHNOLOGY THEFT –

• MP Materials operates the Mountain Pass mine in California, the largest rare earth mine in the United States.
• USA Rare Earth is developing a rare earth project in Texas and a magnet manufacturing facility in Oklahoma.

Both companies have received substantial support from the U.S. government because Washington sees rare earths as strategically important.

What is MP Materials alleging?

MP Materials has filed a lawsuit in Texas alleging that a former employee took confidential magnet-making technology with him when he joined USA Rare Earth. Specifically, the lawsuit focuses on a process called “grain boundary diffusion,” which enhances a magnet’s resistance to magnetic weakening over time.  

MP claims:

• The technology took years to develop.
• Millions of dollars were invested in creating it.
• A former employee disclosed proprietary formulas to USA Rare Earth.
• USA Rare Earth then allegedly shared the information with another technology company.  

How has USA Rare Earth responded?

USA Rare Earth has denied the allegations and says MP Materials has misrepresented the company and its employees. The company says it will defend itself vigorously in court.

Why is this bigger than a normal corporate lawsuit?

The irony is that both companies are supposed to help the U.S. build a domestic rare-earth supply chain to compete with China. Instead of competing against Chinese producers, two of America’s leading rare-earth champions are now fighting each other in court.

Investors and policymakers are watching closely because:

• Billions of dollars of government support are involved.
• The case could affect future rare-earth projects.
• It highlights how valuable magnet technology has become.
• It may slow efforts to build an independent U.S. supply chain.

The wider geopolitical context:

This dispute is happening at a time when China has tightened export controls on several critical minerals and rare-earth products. Governments in the U.S., Europe, Japan, and elsewhere are scrambling to build alternative supply chains. Whoever controls the processing and magnet technology controls a key part of modern manufacturing and defense production.

In essence, the lawsuit is about far more than one employee allegedly taking trade secrets. It is a battle over technology that could become a strategic asset in the economic and technological rivalry between the United States and China.  

US, JAPAN, AUSTRALIA, AND INDIA SEEK TO MOBILIZE $20 BILLION FOR CRITICAL MINERALS:

The Quad countries — the United States, Japan, Australia, and India — agreed this week to make major investments in critical mineral supply chains. At their meeting in New Delhi, the foreign ministers of the four countries adopted a new framework designed to make the supply of strategically important minerals more secure, diversified, and resilient.

According to the partners, up to $20 billion in public and private funding could be mobilized. The initiative is intended to support projects in mining, processing, and recycling of critical minerals. Financing could come from sources including export credit agencies, development banks, private investors, guarantees, loans, equity investments, and offtake agreements.

The goal of the initiative is to reduce dependencies in global raw material supply chains and develop alternative sources of supply. China currently dominates the markets for many essential materials for high-tech industries, including rare earths and germanium.

The Quad is a grouping of the United States, Japan, Australia, and India that serves as a forum for security and economic coordination in the Indo-Pacific. The United States and India had previously announced plans for closer cooperation on raw materials, as reported earlier.

BRAZILIAN RARE EARTH PRODUCER VIRIDIS TARGETS WESTERN BUYERS:

Viridis Mining and Minerals plans to sell output from its Colossus Project, a rare earth project in Brazil, primarily to customers in the United States and Europe. The company is currently in discussions with potential buyers, CEO Rafael Moreno told Reuters. Despite strong interest from China, the company is not currently considering partnerships with Chinese counterparties.

Colossus is located in the Brazilian state of Minas Gerais and, according to Viridis, is expected to reach full production capacity by the end of 2028. Based on previous geological studies, the deposit is considered one of the world’s richest sources of rare earths hosted in ion-adsorption clays. Found mainly in tropical and subtropical regions, these deposits are the primary source of highly sought-after heavy rare earth elements such as Dysprosium and Terbium.

To date, such deposits have been commercially mined mainly in China and Myanmar, while nearly all downstream processing has occurred in China. Although Brazil is widely seen as a promising future producer due to its geology, refining capacity outside China remains limited. As a result, new processing facilities are being developed not only in Brazil but also in the United States and Europe. Viridis’ announcement should be viewed in that broader context.

Just days earlier, the company also announced the first production of a mixed rare-earth carbonate at its new demonstration plant in Poços de Caldas, Minas Gerais. According to Viridis, the facility is among the largest of its kind outside China, dedicated to processing rare earths from ion-adsorption clays. Moreno said the milestone could also support the company’s ongoing offtake negotiations.

Late last year, Serra Verde, another Brazilian rare earth producer, also announced plans to primarily supply Western customers. The company said this strategy reflects expectations that suitable separation facilities will soon become available in those markets.

RARE EARTHS: US AND INDIA SEEK CLOSER COOPERATION:

Indian Foreign Minister Subrahmanyam Jaishankar on Tuesday announced the signing of a strategic agreement with the United States on critical minerals and rare earths. The agreement is intended to cover the entire value chain, including mining, processing, recycling, and related investments, The Economic Times quoted the minister as saying.

The agreement comes at a time of closer coordination between the two countries. India and the United States, together with Japan and Australia, are members of the Quad format, whose foreign ministers are currently meeting in New Delhi.

In his opening remarks, Jaishankar cited resilient supply chains and production and resource concentration among the key challenges.

The United States and India are currently seeking to reduce their heavy dependence on raw material imports from China. India has its own rare earth deposits, but production remains comparatively low at just under 3,000 tonnes per year. This is set to change, according to the draft budget for 2026 and 2027.

Last year, India also announced substantial investments in the production of rare-earth magnets, which are of major importance to industries, including the automotive sector.

SWEDEN: RARE EARTHS AND PHOSPHORUS – MINING COMPANY RECEIVES ENVIRONMENTAL PERMIT FOR EXTRACTION FACILITY –

The Swedish state-owned mining company LKAB has received environmental approval for its planned industrial park for critical minerals. At the Luleå site in northern Sweden, rare earth elements and phosphorus are to be extracted. The raw material will consist of currently unused by-products from LKAB’s iron ore mine, located in Gällivare, about a three-hour drive away.

According to the company, the plant in Luleå will be the first in Europe to test these processes. Construction of the demonstration facility began in January 2025. Operations are scheduled to start in the fall of this year.

Phosphorus is an essential component of mineral fertilizers and, therefore, crucial for food supply, while rare earths are needed for a wide range of civilian and military technologies. Europe is highly dependent on imports for raw materials.

Both LKAB’s industrial park and its iron ore mine have been designated strategic projects under the EU Critical Raw Materials Act. The company’s Per Geijer rare earth deposit in Kiruna, northern Sweden, is also included. All three projects may therefore benefit from easier access to funding and faster permitting procedures.

Although the EU sets the strategic framework and prioritizes projects politically, final approval rests with the Swedish government. This could be particularly decisive in the case of Per Geijer; the deposit is being promoted as highly promising but has also attracted attention due to concerns from the Indigenous Sámi population, who see their traditional way of life as being at risk.