[SMM Rare Earth News Flash] USA Rare Earth announced on June 2 that it will invest $1.2 billion to build a new magnet manufacturing and rare earth metal refining plant in Cherokee County, South Carolina, located at the Bailey Industrial Park in Blacksburg. Once operational, the plant is expected to produce 6,400 mt of sintered NdFeB permanent magnets and 5,000 mt of rare earth metals and alloys annually. Combined with the expansion plan for the Stillwater plant in Oklahoma, the company's total domestic capacity will reach 10,000 mt of NdFeB magnets and 10,000 mt of rare earth metals and alloys per year. The project is the company's third plant in the US, following the separation plant in Colorado and the magnet plant in Oklahoma, and is expected to begin commissioning in 2028.

[SMM Rare Earth Weekly Review: Rare Earth Prices Fluctuated, Upstream and Downstream Remained in Stalemate] Affected by futures price fluctuations combined with periodic restocking by some major producers, Pr-Nd oxide prices fluctuated relatively frequently. Upstream and downstream continued to remain in a stalemate, with suppliers maintaining relatively firm offers overall, while downstream metal producers maintained a strong wait-and-see sentiment. As of today, Pr-Nd oxide prices fluctuated downward to 682,000-688,000 yuan/mt.

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.

[SMM Rare Earth News Flash] Advanced Magnet Lab (AML) announced it was awarded a $2 million contract by the US Defense Logistics Agency (DLA) to qualify high-grade sintered NdFeB permanent magnets for national defense. The two-year contract covers supply chain management, alloy manufacturing, and permanent magnet production, aiming to strengthen domestic critical material supply capability. AML will collaborate with US rare earth metal supplier Phoenix Tailings (supplying Pr-Nd alloy and metallic dysprosium), Australia's Ionic Rare Earths (supplying Pr-Nd oxide and dysprosium oxide), and Texas-based Momentum (a potential Pr-Nd oxide supplier) to build raw material sources.

[SMM Rare Earth Weekly Review: Rare Earth Prices Continued to Decline, Stopping Falling Near Weekend] The Pr-Nd oxide market remained in the doldrums overall this week. Affected by the continuous decline in futures prices, downstream metal plants were relatively cautious in procurement, and market trading remained sluggish. However, mid-week, driven by concentrated procurement from major downstream plants, market procurement volume recovered slightly, and suppliers raised their quotes again. As of today, Pr-Nd oxide prices fluctuated downward to 700,000-705,000 yuan/mt.

[SMM Rare Earth Weekly Review: Overall Decline in Rare Earth Prices Driven by Futures Disruptions] The Pr-Nd oxide market was in the doldrums overall this week. Affected by price fluctuations in futures, traders made shipments at low prices. Meanwhile, the "rush to buy amid continuous price rise and hold back amid price downturn" sentiment intensified the wait-and-see sentiment among downstream metal plants, with poor purchase willingness. Market trading activity was very sluggish. As of today, Pr-Nd oxide prices had fluctuated downward to 745,000-750,000 yuan/mt.

The minutes of Tianhe Magnetics' investor briefing held on May 7 showed: 1. What is the trend in the revenue share of the NEV business, and how is the recovery in wind power, consumer electronics, and other segments? Tianhe Magnetics responded: Hello, thank you for your attention! The company's products are widely used in NEVs and parts, wind power, energy-efficient home appliances, consumer electronics, and other fields. Its clients are all industry leaders, and the company has been deeply integrated into the core supply chains of top-tier players in and outside China. During the reporting period, NEVs and parts remained the downstream segment with the highest share; wind power and consumer electronics segments recovered and grew YoY. The company adheres to a diversified strategy, deepens strategic cooperation with clients, strengthens client loyalty, and continues to expand downstream applications to support steady business growth. 2. What is the specific progress of "small-batch delivery" of dedicated magnets for humanoid robots, and what is the expected revenue contribution? Tianhe Magnetics responded: Hello, thank you for your attention! In the humanoid robot field, the company works closely with relevant clients to jointly conduct R&D and trial production of related projects. The specific revenue contribution is directly linked to the promotion and application progress of humanoid robots. 3. Against the backdrop of tightening rare earth export controls, how can the sustainability of the 44% ex-China business be ensured? Tianhe Magnetics responded: Hello, thank you for your attention! The company coordinates and obtains export licenses from the Ministry of Commerce in an orderly manner based on client orders to ensure the smooth and sustained operation of its export business. At the same time, the company actively expands markets outside China, deepens engagement with existing clients and develops new clients, increases efforts in developing zero-heavy-rare-earth products, and scales up product exports to ensure steady growth in ex-China performance. Tianhe Magnetics' Q1 2026 report disclosed on April 28 showed: the company achieved total operating revenue of 594 million yuan, up 13.12% YoY; net profit attributable to the parent company was 47.873 million yuan, up 33.41% YoY. Tianhe Magnetics' Q1 report showed: raw material prices remained at high levels, and selling prices of some sales orders were raised, which in turn affected related profit indicators. Tianhe Magnetics' annual report showed: 2025 was the inaugural year of Tianhe Magnetics' entry into the capital market, and the company embarked on a new phase of high-quality development. Positioned at the forefront of the industry, amid the trend of high-end, intelligent, and green development in the rare earth industry, the company anchored on technological innovation and intelligent management as its core, deepened collaborative partnerships with clients, continuously optimized its supply chain layout, steadily released capacity from IPO-funded projects, and progressively implemented automated production line upgrades and green process improvements. Meanwhile, the company actively expanded its product portfolio and industrial reach into injection-molded magnets, bonded magnets, and magnetic assemblies to provide clients with comprehensive rare earth permanent magnet solutions. In addition, the company accelerated its positioning in emerging sectors such as humanoid robots and the low-altitude economy to build momentum for long-term growth. In 2025, the company achieved operating revenue of 2.346 billion yuan, down 9.47% YoY, total profit of 170.908 million yuan, up 18.81% YoY, and net profit of 161.161 million yuan, up 18.43% YoY. In its annual report, when introducing its main business, products, and application fields, Tianhe Magnetics stated: The company is a leading high performance rare earth permanent magnet material provider in China. With the corporate vision of "being a leader in permanent magnet material innovation," the company is primarily engaged in the R&D, production, and sales of high performance rare earth permanent magnet materials such as sintered NdFeB and sintered SmCo, while extending its industrial reach into injection-molded magnets, bonded magnets, and magnetic assemblies to provide clients with comprehensive rare earth permanent magnet solutions. With independent R&D and technological innovation at its core, and guided by the application scenarios and development needs of downstream cutting-edge fields such as NEVs and auto parts, wind power generation, intelligent manufacturing, and 3C consumer electronics, as well as emerging industries such as humanoid robots and the low-altitude economy, the company effectively leverages the fundamental and pioneering role of rare earth permanent magnets as key strategic materials, continuously advancing the innovation and application of high performance, resource-efficient rare earth permanent magnet materials to drive downstream technological innovation, product upgrades, and industrial transformation. Regarding the company's business plan, Tianhe Magnetics stated in its annual report: 2026 is the second year since Tianhe Magnetics' listing and the opening year of the 15th Five-Year Plan. Standing at a new starting point, the company adopts "innovation" as its annual development theme, upholds the philosophy of "breaking conventions and embracing change," and continues to deepen its presence in the high performance rare earth permanent magnet material field. Leveraging its two rare earth bases in Baotou, the company plans to focus on core technology upgrades and high-end market expansion both in and outside China, seize the strategic opportunities of the global energy transition and intelligent development, and drive "development" through "innovation." Under the leadership of the board of directors, the company plans to further integrate resources, leverage its strengths, and systematically advance various initiatives around its business objectives to ensure high-quality and sustainable development. In 2026, the company plans to focus on the following initiatives: 1. With "innovation" at the core, continuously strengthen R&D investment and drive product and technology upgrades. 2. Pursue new frontiers: focus on expanding new products, new clients, and new markets. 3. Continuously strengthen production and quality management to improve yield and turnover efficiency. 4. Deepen the construction of digital smart factories to continuously enhance production efficiency. 5. Steadily advance IPO-funded and new project construction to expand capacity and support performance growth. (1) Continue to advance IPO-funded project construction. In 2026, the company plans to continue advancing the implementation of IPO-funded projects as planned. Upon full production, the company will reach an annual capacity of 12,300 mt. The company plans to continuously improve manufacturing efficiency through automated production line upgrades, digital management system deployment, and green production process transformation, ensuring capacity alignment across all stages from blank production to finished product inspection, and laying a solid foundation for performance growth. (2) Advance the Tianhe New Materials project construction. The Phase I of the "Tianhe New Materials Rare Earth Zero-Carbon Industrial Park (High Performance Rare Earth Permanent Magnets and Assemblies, Equipment Manufacturing and R&D Project)" invested and constructed by the company's subsidiary Tianhe New Materials has been launched. Upon completion, the project will further expand the business scale and enhance the company's overall profitability, market competitiveness, and risk resilience. 6. Enhance intelligent equipment manufacturing capabilities and cultivate new growth drivers. 7. Management empowerment: continuously strengthen organizational and talent development. 8. Continue to improve ESG efforts and promote sustainable development. 9. Strengthen investor relations and market capitalization management to drive sustained enhancement of company value. When disclosing the risk of raw material price fluctuations, Tianhe Magnetics stated: The main raw materials required for the company's production are rare earth metals, which are relatively expensive and subject to notable fluctuations due to multiple factors including macro economy, trade environment, industrial policies, and market supply and demand. Although rare earth permanent magnet material enterprises can dynamically adjust product selling prices based on factors such as raw material price changes, some existing order prices are locked in, and price adjustments for new orders also involve negotiation cycles, so product price adjustments typically lag behind raw material price fluctuations. If raw material prices continue to swing wildly in the future and the company fails to respond in a timely and effective manner, it may adversely affect business performance. Countermeasures: To address this risk, the company continuously strengthens supply chain management, signs long-term agreements with major suppliers to establish stable partnerships, and implements a scientific raw material reserve strategy to smooth out the impact of price fluctuations. A review of the 2025 price performance of Pr-Nd alloy, a key raw material for NdFeB, showed: the average price of Pr-Nd alloy on December 31, 2025 was 735,000 yuan/mt, up 50.31% compared with its average price of 489,000 yuan/mt on December 31, 2024. The annual daily average price of Pr-Nd alloy in 2025 was 602,181.07 yuan/mt, up 117,476.52 yuan/mt or 24.24% YoY compared with the annual daily average price of 484,704.55 yuan/mt in 2024. A review of the price trend of Pr-Nd alloy in Q1 this year showed: the average price of Pr-Nd alloy on March 31 this year was 880,000 yuan/mt, up 145,000 yuan/mt or 19.73% compared with its average price of 735,000 yuan/mt on December 31, 2025. The daily average price of Pr-Nd alloy in Q1 this year was 913,035.71 yuan/mt, up 385,018.17 yuan/mt or 72.92% compared with the Q1 2025 daily average price of 528,017.54 yuan/mt. On May 8, the price of Pr-Nd alloy was 925,000–930,000 yuan/mt, with an average price of 927,500 yuan/mt, down 0.8% from the previous trading day. Currently, rare earth market prices continue to weaken. Pr-Nd market, downstream purchasing inquiries showed no improvement, and suppliers of oxides maintained a low-price selling strategy to facilitate shipments. However, Pr-Nd oxide futures prices recovered somewhat on the morning of May 8, narrowing the price decline of Pr-Nd oxide. Metal market, constrained by sluggish downstream inquiries, factories showed limited willingness to actively quote, and some suppliers chose to continue lowering their offers. However, as the decline in spot oxide prices narrowed, the actual decline in Pr-Nd alloy prices also narrowed. Nevertheless, downstream wait-and-see sentiment remained strong, and the market trading atmosphere did not see effective improvement. In the short term, Pr-Nd product prices are expected to move sideways amid the tug-of-war between upstream and downstream players.

US rare earth company REalloys received a formal memorandum from the US Department of Defense, emphasizing the urgency of building a domestic heavy rare earth element (HREE) supply chain ahead of the January 2027 ban on procurement of Chinese-sourced rare earth materials. REalloys is actively expanding North American metal supply capability to produce defense-grade dysprosium and terbium at commercial scale. The company has signed a long-term offtake agreement with the Saskatchewan Research Council (SRC) in Canada, securing annual raw material sufficient to produce 530 mt of rare earth metals, and is investing in expanding SRC's processing facilities to provide emergency supply assurance for fully closing the Chinese-sourced gap in the defense supply chain by 2027.

[SMM Rare Earth Weekly Review: Market Sluggish around Holiday, Rare Earth Prices in the Doldrums] The Pr-Nd oxide market saw a poor trading atmosphere recently. Downstream metal plants showed low enthusiasm in inquiries and procurement around the holiday, but upstream suppliers maintained firm offers amid tight spot cargo availability, and low-priced sources remained difficult to find. Overall, Pr-Nd oxide price fluctuations were relatively small. As of today, Pr-Nd oxide prices adjusted slightly downward to 762,000-768,000 yuan/mt.

[SMM Rare Earth Weekly Review: Rare Earth Price Fluctuations Narrowed Ahead of Labour Day Holiday] Pr-Nd oxide market prices pulled back slightly at the beginning of the week due to news-driven factors. However, given that spot supply of Pr-Nd oxide remained tight, upstream suppliers held firm on their offers, and low-priced cargoes remained hard to find. As of today, Pr-Nd oxide prices fluctuated and adjusted to 770,000-775,000 yuan/mt over the week.