Weekly News Review September 28 – October 4 2026

Once again this week, Brazil’s mineral wealth attracted international attention. This time, Lynas, the largest rare earth producer outside China, is seeking to secure access. At the same time, the company is further expanding its role in alternative supply chains — this time as a supplier to a South Korean company.  – Find the details in our roundup.

RARE EARTH EXPORT CONTROLS: CHINA CONFIRMS EXTENSION OF TRADE ARRANGEMENTS WITH THE UNITED STATES –

On Friday, we reported that China’s additional rare earth export controls appeared likely to remain suspended for another two months. Beijing has now given a date: Its trade arrangements with the United States have been extended until January 10, 2027, China’s Ministry of Commerce said on Monday.

China announced the new controls* covering the rare earth supply chain in October 2025, but suspended them until November 10, 2026. This was part of an agreement reached during trade talks between China and the United States in Kuala Lumpur in late October 2025. The confirmed extension of those arrangements suggests that the export controls will also remain suspended for another two months. Monday’s statement does not explicitly mention rare earths, however, so separate confirmation of the new date for the export controls is still pending.

Both sides had already agreed on an extension during trade talks shortly before last week’s Trump-Xi summit in Washington. Until now, however, only U.S. Treasury Secretary Scott Bessent had given the specific date of January 10.

AUSTRALIA’S LYNAS EYES RARE EARTH DEPOSIT IN BRAZIL:

Acquisition of Meteoric Resources could strengthen heavy rare earth production outside China.

Rare earth producer Lynas is looking to expand its resource base and plans to acquire Meteoric Resources (PDF). The fellow Australian company controls the Caldeira project in the Brazilian state of Minas Gerais. It is one of the largest known ionic adsorption clay deposits. In these deposits, rare earth elements are largely bound to clay minerals and can be extracted more easily. They also tend to contain relatively high concentrations of heavy rare earth elements such as dysprosium and terbium. Production of these elements is currently heavily concentrated in China.

Lynas would process material mined at Caldeira at its existing refinery in Malaysia. The company also plans to assess whether it could eventually locate certain processing stages in Brazil.

This would fit well with Brazil’s new critical minerals policy. The country aims to expand domestic processing and further refining of critical raw materials and create additional funding and financing instruments to support such projects. In doing so, South America’s largest economy hopes to benefit more from its mineral wealth, as processed materials generally command higher revenues than unprocessed raw material exports.

Several Parties Interested in Caldeira Material

Lynas plans to acquire Meteoric in an all-share deal valued at around US$670 million. The agreement has already been signed but still requires approval from Meteoric shareholders, a court and the relevant Brazilian authorities.

Parts of the planned production have already attracted several potential buyers that are working to establish non-Chinese rare earth supply chains, including Neo Performance Materials, Ucore Rare Metals and Posco. Caldeira has also attracted interest on the financing side: In addition to the Export-Import Bank of the United States, Meteoric says it is in talks with Brazilian and US development finance institutions as well as other strategic investors.

The planned offtake arrangements are currently only memoranda of understanding, not final, binding contracts. It therefore remains unclear whether, and in what form, Lynas would implement these agreements following a takeover.

USA: STARTUP SECURES US GOV. FUNDING –

Startup secures US government funding to launch high-purity iron production.

When it comes to rare earths, permanent magnets are currently a key focus. Neodymium-iron-boron (NdFeB) magnets in particular are essential components in electric motors and numerous military applications. However, their production requires more than rare earth elements alone: around 70% of an NdFeB magnet’s weight is iron, which must meet particularly high purity standards for magnet manufacturing.

Startup Hertha Metals aims to close a critical gap in the US permanent magnet value chain, as the United States currently has no domestic production of high-purity iron. As the company announced on Tuesday, it has raised $133.65 million to build a production facility in Texas. Annual capacity is expected to reach 10,000 tonnes.

Hertha’s process can operate with either natural gas or hydrogen. This provides flexibility and could allow the company to lower emissions over time as hydrogen becomes more widely available.

New US Military Sourcing Rules from 2027

Domestic iron production is also gaining importance because of new procurement rules issued by the US Department of Defense. From January 2027, the rules will generally cover the entire NdFeB magnet supply chain, from mining neodymium, iron, and boron through to the production of finished magnets. Exceptions apply, including for certain commercially available products, recycled magnets, and cases where compliant materials are not available in sufficient quantities.

VIETNAM:

LS Eco Energy plans to build a samarium metal plant in Ho Chi Minh City, Vietnam. The subsidiary of South Korean cable manufacturer LS Cable & System wants to invest approximately $8.6 million in the project. The facility will have an annual capacity of around 240 tonnes of samarium metal, with trial production targeted for December. The company intends to expand production to dysprosium, terbium and neodymium-praseodymium at a later stage.

According to LS Eco Energy, the planned samarium output would be sufficient to produce around 700 to 1,000 tonnes of samarium-cobalt magnets a year. The metal is intended for magnet production by LS Cable & System.

Stricter US Military Procurement Rules Drive Investment These magnets have important applications in defense and aerospace. They are generally more heat-resistant than the widely utilized neodymium-iron-boron magnets and are used in fighter jets, for example. LS Eco Energy says the investment responds to tighter US military procurement rules. From January 2027, the US Department of Defense will generally be barred from procuring samarium-cobalt magnets containing samarium or cobalt mined or processed in China. The expanded restrictions also cover neodymium-iron-boron magnets, tantalum metal and alloys, tungsten metal powder, and certain tungsten alloys.

The LS Group has been working for several years to build a rare earth value chain outside China. China dominates refining and magnet manufacturing. In early 2024, group subsidiary LS Eco Advanced Materials signed a memorandum of understanding with German magnet manufacturer Vacuumschmelze to establish a joint venture. In March this year, LS Eco Energy announced a partnership with Australian miner Lynas, the largest rare earth producer outside China. Lynas is now to supply rare earth oxides for further processing at the plant in Vietnam.

UK: PENTAGON BACKS TUNGSTEN PROJECT IN CORNWALL –

More than $9 million in U.S. funding is earmarked for further drilling and feasibility studies at Redmoor.

The U.S. Department of Defense has committed $9.25 million to the Redmoor tungsten project in Cornwall. Cornwall Resources, a subsidiary of UK-based Strategic Minerals, is developing it.

Strategic Minerals says Redmoor has the highest average tungsten grade among undeveloped deposits in Europe and ranks second worldwide. The deposit also contains tin and copper. Drilling is under way to support the feasibility studies. The U.S. funding is intended to help advance the project toward a final investment decision on mining, including through further drilling and technical studies. Cornwall Resources is also discussing potential links to U.S. supply chains and offtake agreements. The funding does not cover mine construction.

Tungsten is used in military applications, including armor-piercing ammunition and vehicle armor. In mid-September, the Pentagon had already invested in expanding the domestic tungsten supply chain. With Redmoor, it is now also backing a mining project in an allied country.