Global rare earth magnet production expansion

The production of rare earth magnets is expanding to meet rising global demand for electric vehicle (EV) motors, industrial robots, and automation technologies. Industry projections suggest demand for these elements will continue to grow significantly through 2030. In Europe, Neo Performance Materials has transitioned to commercial series production of sintered rare earth permanent magnets at its Silmet plant in Estonia. The facility is now supplying Tier-1 suppliers for EV traction motors, with plans to increase annual production from 2,000 to over 5,000 tonnes. To secure its raw material supply chain, Neo has signed a memorandum of understanding with Rainbow Rare Earths. This partnership involves Neo providing technical support and solvent extraction technology for the Phalaborwa project in South Africa. In exchange, Neo will receive offtake rights to 40% of the project’s neodymium-praseodymium oxide production and 65% of its mixed heavy rare earth carbonate production, including dysprosium and terbium. The Phalaborwa project seeks to recover these elements from legacy phosphogypsum residue, a byproduct of fertilizer production, rather than through new mining. In the United States, MP Materials is developing magnet production capabilities in Texas. Its Fort Worth facility is producing prototype magnets for General Motors, with commercial shipments anticipated in late 2026. Furthermore, the company is planning a second factory in Northlake, Texas, supported by the U.S. Department of Defense, and intends to commission heavy rare earth separation capabilities for dysprosium and terbium later this year. Amid efforts to reduce dependence on Chinese supplies, Evolution Metals & Technologies Corp. is also expanding magnet production for EV, industrial, and defense applications. The company has appointed former defense officials, including retired Air Force General Thomas A. Bussiere and former acting Secretary of Defense Chris Miller, to its board. Geopolitical tensions have intensified as China utilizes export controls and blacklists against U.S. companies.