Despite the Trump administration pushing to build a domestic supply chain, U.S.
demand for rare earths has yet to materialize and output from MP Materials,
Energy Fuels and Phoenix Tailings is being sold to Japanese and South Korean
buyers. The three firms, backed by billions of dollars in U.S. government
support, are supplying Asian magnet makers whose production scale is still far
exceeds the nascent U.S. industry. Phoenix Tailings CEO Nick Myers said Chinese
rare-earth metal exports have fallen sharply this year and Japanese customers
are scrambling to buy the company’s metals. He warned that unless major U.S.
defense contractors act quickly, the company’s product will be sold out, with
other buyers paying higher prices and moving faster. Industry sources say U.S.
companies have announced plans to mine rare earths and make magnets
domestically, but it will take time for a scaled U.S. rare-earth supply chain to
form.
