US Rare Earth Producers Export to Asia Amid Low Domestic Demand

U.S. rare‑earth companies backed by federal funding—MP Materials, Energy Fuels and Phoenix Tailings—are shipping most of their neodymium‑praseodymium oxide to Japanese and South Korean manufacturers rather than to a fledgling domestic market. MP Materials sells its product through a distribution deal with Sumitomo Corporation of Americas to Japanese customers, while Energy Fuels plans shipments to South Korea and has agreed to acquire a South Korean metal‑making plant. Phoenix Tailings’ buyers are also mainly Korean and Japanese firms seeking alternatives after China curtailed rare‑earth exports. Analysts note that U.S. magnet output is under 1,000 tonnes, far below Japan’s 10,000‑15,000 tonnes and South Korea’s 2,000‑3,000 tonnes, while China still dominates global production.

In the second quarter of 2026, MP Materials reported a 41 % year‑over‑year rise in separated NdPr production to 840 metric tons and a 127 % jump in sales volume to 1,006 metric tons, driving NdPr revenue to $94.4 million, a 277 % increase. The company began manufacturing neodymium‑iron‑boron permanent magnets at its Independence facility in December 2025 and signed supply agreements with General Motors, Apple and a new aerospace‑defense customer for gadolinium. Energy Fuels announced a $1.9 billion acquisition of German magnet maker Vacuumschmelze, and Phoenix Tailings received $500 million in conditional U.S. funding to expand capacity.