Market & policy

Rare earths are now an industrial-security problem.

Permanent magnets account for roughly 95% of rare-earth consumption by value, demand for magnet rare earths has doubled since 2015, and supply remains highly concentrated. Policy and capital are shifting toward the midstream bottleneck.

Current research signals

Magnet rare-earth demand

Doubled since 2015; expected to grow further by 2030.

A real demand tailwind, but it must be tied to specific customer segments.

China concentration

91% of refined output and 94% of sintered magnets in 2024 (IEA).

Non-China supply has strategic value if it is technically qualified.

Canada policy

Permanent magnets are a priority Canadian value chain.

Canadian positioning is structural, not decorative ESG language.

G7 policy

2026 diversification and stockpiling coordination announced.

Potential support for offtake, stockpiling, price floors, joint procurement.

U.S. financing trend

Conditional loan to expand separation / metallization capacity.

Midstream proof may unlock strategic capital.

The numbers, 2024

Rare earths by the market's own data.

A concentrated supply chain feeding fast-growing, magnet-heavy demand. Figures below are drawn from Natural Resources Canada's rare earth elements facts (2024, preliminary).

390,000 t

Global REE mine production in 2024

90%

Of refined REE supply comes from China

47.6%

Of demand is permanent magnets

15.2 Mt

Canada's rare-earth oxide resources

Global demand by end use

Permanent magnets dominate consumption, the segment our recovery targets first.

Permanent magnets47.6%

Catalysts15.7%

Polishing powders10.5%

Other uses8.6%

Metallurgical6.4%

Glass5.9%

Ceramics3.1%

Battery alloys1.6%

Refined supply concentration

Refining, not mining, is the true bottleneck, and it sits almost entirely in one country.

China90.2%

Asia-Pacific (ex-China)7.1%

Europe1.5%

North America0.8%

North America refines under 1% today. Qualified non-China midstream capacity is exactly the gap our process is built to close.

Mine production by country, 2024

390,000 t total. Mining is more distributed than refining, yet China and Myanmar remain almost the only source of heavy REEs.

China

270,000 t · 69%

United States

45,000 t · 12%

Burma (Myanmar)

31,000 t · 8%

Australia

13,000 t · 3%

Thailand

13,000 t · 3%

Other countries

18,000 t · 5%

Source: Natural Resources Canada, Rare earth elements facts (2024, preliminary), compiled from USGS and Wood Mackenzie data.

Customer segments

The first product should be chosen by qualification difficulty and strategic value, not by ambition.

Defence primes

Buys: Qualified magnets or secure upstream material
Cares: Supply assurance, export-control resilience, traceability
Barrier: Long qualification and security requirements

Industrial motor manufacturers

Buys: Magnets or alloy inputs
Cares: Price, reliability, performance consistency
Barrier: Cost competitiveness and volume

EV supply chain

Buys: High-volume qualified magnets
Cares: Scale and long-term contracts
Barrier: Automotive qualification can take 1–3 years

Wind OEMs

Buys: Large magnet volumes
Cares: Supply security and cost
Barrier: Scale, price, heavy rare-earth substitution strategies

Competitive landscape

The field of established producers, recyclers, and substitution paths the venture is measured against.

LynasMP MaterialsEnergy FuelsUcoreNeo Performance MaterialsChinese producersMagnet recyclersSubstitution / ferrite alternatives