[SMM Rare Earth Newsflash] US rare earth developer Rare Element Resources (RER) announced that its rare earth separation demonstration plant in Upton, Wyoming, is progressing and plans to begin full operations by late summer 2026. The plant will utilize proprietary technology to produce high-purity neodymium-praseodymium oxide, plans to operate for up to 12 months, providing critical data for future commercial separation facilities. RER wholly owns the Bear Lodge rare earth project, which was designated as a federal FAST-41 covered project in March 2026. The company raised $30.5 million through an oversubscribed rights issue in March to fund plant operations and project licensing, and is expected to complete all licensing requirements by early 2028.

This week, the rare earth market showed a clear divergence, with light and heavy rare earths moving in opposite directions. On the light rare earth side, trading sentiment for praseodymium-neodymium oxide turned subdued again, and metal plants remained reluctant to purchase. As a result, prices fluctuated within a narrow range. Although upstream separation plants still showed some willingness to support prices, downstream magnetic material companies and metal plants had low acceptance of current price levels, and new orders were limited, leading to a stalemate between buyers and sellers. Feedback from across the supply chain indicates that downstream users still lack the capacity to absorb high-priced oxides, and actual transactions were mostly small, just-in-time purchases with few bulk restocking activities. Consequently, neodymium-praseodymium prices are expected to continue their weak and volatile trend in the near term. On the heavy rare earth side, the market for dysprosium oxide and terbium oxide was relatively more active, supported by market rumors and purchasing activity from some large smelters, prompting prices to gradually move higher. However, feedback from metal plants suggests that downstream order books for magnetic material companies have not materially improved, and overall demand remains weak. Although upstream suppliers are clearly trying to push prices higher, the lack of strong support from end-user orders means that actual transaction volumes are low, and high-priced deals remain sporadic. Overall, the rare earth market remains largely in a wait-and-see mode. Both the downward pressure on light rare earths and the passive uptick in heavy rare earths reflect the sluggish recovery in demand. In the short term, the market is likely to continue its subdued trajectory.

[SMM Rare Earth News Brief] Belgium's Solvay has reached a supply agreement with Australia's Viridis Mining & Minerals to receive rare earth raw materials from its Colossus ion-adsorption ore project in Brazil starting in 2028, processing them into high-purity oxides at its La Rochelle plant in France, covering key magnetic material elements including neodymium, praseodymium, dysprosium, and terbium. This move will ensure Solvay meets Europe's growing rare earth demand, helping it achieve its goal of covering 30% of European demand by 2030, while also promoting diversification of the Western rare earth supply chain.

The ex-China rare earth market this week exhibited a trend of "falling prices amid tight supply," with Pr-Nd oxide and metal prices generally marked down by approximately $5-10/kg. However, due to export controls and tightening supply, the premium on Chinese products outside China remained significant. Meanwhile, geopolitical rivalry and supply chain restructuring accelerated, with G7 finance ministers calling for urgent reduction of dependence on China and the establishment of recycling quota systems. On the capital front, Greenland Resources spent $35 million to acquire the high-grade Sarfartoq project to strengthen its magnetic material rare earth portfolio. Australia's Arafura officially finalised the final investment decision for the Nolans project. Combined with Brazil's launch of an antitrust investigation and Germany's Heraeus divesting its recycling business, these developments underscored the urgency of global decoupling and localization efforts.

Arafura Rare Earths, listed on the Australian Securities Exchange, has signed a binding offtake letter of intent with global physical rare earth trader Traxys North America to support the revival and development of domestic manufacturing in the US automotive, national defense, and advanced technology sectors. Traxys plans to supply 500 mt/year of neodymium-praseodymium (NdPr) oxide and 7.5 mt/year of dysprosium-terbium (DyTb) oxide from Arafura's Nolans project in Australia's Northern Territory to US enterprises, including potential supply to "Project Vault" managed by the US Export-Import Bank (Exim). The plan aims to provide a tactical buffer against critical minerals supply shocks.

Brazil's antitrust regulator Cade launched an investigation into US rare earth company USAR's proposed acquisition of Brazilian rare earth producer Serra Verde. Serra Verde is currently Brazil's only operational rare earth mine. The transaction includes a 15-year offtake agreement between Serra Verde and a special purpose vehicle funded by US government agencies including the Department of Commerce and the Department of Energy. The agreement explicitly stipulates lowest prices for rare earth elements such as neodymium, praseodymium, dysprosium, and terbium.

[SMM Rare Earth News Flash] USA Rare Earth agreed to acquire Brazil's Serra Verde Group for $2.8 billion. The deal includes $300 million in cash and stock. After the merger, original USA Rare Earth shareholders will hold 66% and Serra Verde shareholders 34%. Serra Verde owns the Pela Ema ionic clay mine, targeting annual production of 6,400 mt of rare earth oxides by the end of 2027 with plans to double that. It has signed a 15-year offtake agreement with a US government-funded agency, locking in lowest prices for praseodymium, neodymium, dysprosium, and terbium. This acquisition accelerates the company's mine-to-magnet integrated strategy, with combined rare earth oxide capacity reaching 17,100 mt/year after the merger.

This week, the overseas rare earth market was broadly influenced by supply tightening in China, with Pr-Nd and heavy rare earth prices generally rising. On the industry front, Europe and the US accelerated supply chain independence: the Norwegian government took over the development of the Fen deposit, the US acquired Brazil's Serra Verde, and Estonia's Silmet plant commenced production of heavy rare earth separation. In addition, UK magnet recycling and Brazil-Germany cooperation both made substantive progress, as the global ex-China supply chain buildout continued to accelerate.

European Resources has more than doubled the resource at its Korsnäs project to 15.4 million tonnes at 1.0% rare earth oxides, up from about 7.1Mt in 2024. The deposit contains roughly 137.9 million kg of rare earths, including key EV metals like neodymium and praseodymium. The discovery strengthens Europe’s push for critical mineral supply, though the project is still in early (inferred) stage.

[SMM Overseas Rare Earths Update] Driven by rising prices in China and future expectations, mainstream rare earth prices outside China edged up this week. Praseodymium oxide FOB closed at $126-130/kg, neodymium oxide FOB closed at $157-189/kg, up $2/kg WoW, praseodymium metal FOB closed at $171-179/kg, up $5/kg WoW, and neodymium metal FOB closed at $159-179/kg, up $6/kg WoW.