“Western Rare Earths Supply Chain Gears Up: A Factbox” – Reported by Reuters

The global supply chains for rare earths are undergoing a significant realignment as companies strive to diversify away from China, the top producer of rare earths. These rare earths are crucial for the production of permanent magnets used in a wide range of products, including electric vehicles, wind turbines, and drones.

Leading the charge in this realignment is Lynas Rare Earths, the world’s biggest supplier of rare earth compounds outside of China. Lynas is expanding its operations by building a heavy rare earths processing plant in Texas, with the help of $288 million in U.S. defense funding. This new facility is expected to come online in fiscal 2026 and will play a key role in reducing the West’s dependence on imports from China.

Other companies are also investing in rare earth processing facilities to establish a more diverse supply chain. Solvay, a Belgian chemicals maker, is expanding its operations in France to launch the production of rare earth oxides needed for permanent magnet production by 2025. Similarly, Germany’s Vacuumschmelze and UK-based Less Common Metals are ramping up their production capabilities to contribute to the development of a European rare earths value chain.

Countries like Japan, South Korea, Canada, and Brazil are also making significant strides in rare earth processing. These efforts are essential to reduce reliance on China and ensure a stable and diversified supply of rare earths for the production of essential products in the global market. As companies and countries continue to invest in rare earth processing facilities, the supply chain for these critical minerals is expected to become more resilient and sustainable in the years to come.