According to SMM statistics, China’s exports of NdFeB magnets totaled 4,730 tons in May 2026, marking a month-on-month decline of 7.72%. However, volumes surged by 281.84% year-on-year. The sharp YoY increase is primarily attributed to a low base effect caused by export controls in May 2025. The MoM drop, meanwhile, reflects both seasonal weakness in overseas demand and tangible changes in domestic export licensing procedures.

[SMM Rare Earth Weekly Review: Rare Earth Prices Surge and Pull Back, News-Driven Volatility Cools Trading] Recently, supported by reports of production cuts at scrap recycling enterprises alongside recovering downstream demand, most suppliers sharply raised their quotations and market confidence strengthened notably. On Thursday, however, renewed bearish speculation rattled the market, triggering a sharp drop in futures prices. Spot market prices for Pr-Nd oxide followed suit and pulled back. As of today, Pr-Nd oxide prices have undergone volatile adjustments to 743,000-747,000 yuan/mt.

[SMM Rare Earth Flash] Aclara Resources, listed in Toronto, announced that its Penco rare earth project in the Biobío Region of Chile has obtained the final environmental permit, clearing a key hurdle for the project's advancement. The project, being developed by Aclara in partnership with Chile's Steel and Mining Group (CAP), is an ion-adsorption type rare earth deposit with an expected investment of $130 million, and is expected to create nearly 700 construction jobs and 400 operational jobs. The company plans to integrate the Penco project into its mine-to-magnet supply chain strategy and build a rare earth separation facility in Louisiana, US, while jointly constructing a downstream alloy facility with CAP.

[SMM Rare Earth Flash] US critical minerals producer Energy Fuels (NYSE American: UUUU) recently announced that it has signed a definitive agreement with private equity firm Ara Partners to acquire Vacuumschmelze (VAC), a century-old German magnetic material enterprise, for approximately $1.9 billion. The transaction is expected to close in early 2027. VAC’s existing Sumter plant in South Carolina, US, has a permanent magnet capacity of 2,000 mt per year, expandable to 12,000 mt per year. The acquisition combines VAC’s downstream magnetic material manufacturing with Energy Fuels’ upstream rare earth mining and separation assets, as well as the metal capacity from the planned acquisition of Australian Strategic Materials (ASM), creating the first rare earth platform in the West that spans the entire supply chain from mining to finished magnets. VAC will retain its German headquarters and brand.

[SMM Analysis: Impact on Solid-state Batteries of the Ministry of Commerce Adding 10 US Entities to the Export Control List] On June 22, 2026, the Ministry of Commerce issued an announcement and, effective immediately, formally implemented the "Export Control List (June 22, 2026)," which includes 10 US entities. This export control measure has almost no direct impact on China's solid-state battery industry, but attention should be paid to the indirect link of the rare earth supply chain. (1) China already has export controls on high-end batteries with an energy density exceeding 300 Wh/kg (including semi-solid and all-solid-state), and this measure targeting specific entities is an extension of the existing control framework rather than a new restriction specifically aimed at the solid-state battery industry. (2) The solid-state battery industry is still in the development stage and has not yet generated a significant export demand.

On June 22, China’s MOFCOM imposed export controls on 10 US entities, including rare earth giants MP Materials and USA Rare Earth, retaliating against the US expansion of its "Chinese Military Companies List" on June 8. While largely symbolic for China's magnet exports, the move targets the Achilles' heel of US supply chain autonomy, threatening higher costs and delays for American defense and rare earth projects.

US Rare Earths (USAR) has started operating its heavy rare earth hydrometallurgy demonstration plant in Wheat Ridge, Colorado, and plans to produce separated oxides for the first time in Q3 2026. USAR said the plant will produce separated heavy rare earth oxides, including dysprosium, terbium and yttrium. Quantity details were not disclosed. The company said the Wheat Ridge facility is fully automated and equipped with instruments for real-time process monitoring in all production operations. The plant processes three raw materials simultaneously, including ore from USAR's Round Top project in Texas, ore from the Serra Verde Pela Ema mine in Brazil, and magnet scrap.

US rare earth developer Ucore Rare Metals and Sumitomo Corporation of Americas (SCOA) established a strategic partnership to develop a diversified rare earth supply chain. Sumitomo stated that under the agreement, the two companies will collaborate to source rare earth raw materials for Ucore's Louisiana Strategic Metals Complex and for the offtake development of separated rare earth products. The partnership will focus on selected medium-heavy rare earth elements for high performance magnets and advanced material applications in Japan, while reserving additionally processed raw materials for the North American and allied country markets. SCOA will serve as Ucore's distribution partner to sell designated separated rare earth products to selected client groups in Japan and for other industrial applications. In 2023, Sumitomo agreed to act as the exclusive distributor of Pr-Nd oxides produced by US rare earth producer MP Materials.

[SMM Rare Earth Weekly Review: Rare Earth Prices Overall Raised, Limited Pre-Holiday Transaction Follow-Through] Recently, affected by news of production cuts at scrap recycling enterprises, some industry participants expected Pr-Nd oxide supply to tighten. Suppliers raised their quotes, and low-priced supplies rapidly tightened. As of today, the Pr-Nd oxide price was raised to 717,000-720,000 yuan/mt.

[SMM Magnesium Survey: Overseas Brine Magnesium Smelting Projects Accelerate, Bringing Incremental Local Magnesium Supply to Europe and the US] The Canada Greenland Malm bjerg project is advancing preliminary works, conducting tests on magnesium extraction from brine and rare earth recovery. The European Innovation Council's due diligence on a €50 million investment will be completed by the end of June, which can supplement the EU's local magnesium supply. In the US, Magrathea, in collaboration with TETRA, has achieved commercial production of high-purity magnesium through brine-based smelting, marking the only new magnesium smelting capacity built in the US in recent years. Phase one has commenced, filling the gap in domestic high-end magnesium raw material supply.