Defense and EV Push Spurs Rare Earth Magnet Buildout in U.S. and Canada
Amid intensifying global competition for rare earth supply chains, North American companies are scaling up domestic magnet production. These metals—especially neodymium, praseodymium, and dysprosium—are vital for EV drivetrains, wind turbines, and military guidance systems. The U.S. and Canada are now directly funding magnet facilities, rare earth refineries, and feedstock mining to reduce reliance on China, which still controls over 85% of global capacity.
Key Points:
USA Rare Earth and Noveon Magnetics both announced expansion plans this week to meet U.S. Department of Defense and EV demand.
https://www.usarareearth.com/news/
https://www.noveon.co/Vital Metals (Canada) resumed rare earth extraction from its Nechalacho project in the Northwest Territories, targeting midstream partnerships.
https://www.vitalmetals.com.au/U.S. Department of Energy issued a new $30M call for proposals to build domestic rare earth separation capacity.
https://arpa-e.energy.gov/technologies/programs/remeMP Materials remains the largest North American producer, but several juniors are approaching pilot scale.
Why It Matters:
Military Readiness Risk – Rare earth magnets are essential for everything from fighter jets to missile systems; China’s dominance is now a strategic liability.
EV Supply Chain Squeeze – Neodymium-iron-boron (NdFeB) magnets are standard in permanent-magnet EV motors. As demand soars, so does urgency.
Canada’s Leverage Grows – With Vital Metals back online and Avalon, Search Minerals, and others advancing, Canada’s resource base is a rare strategic advantage.
Watchlist Companies:
Noveon Magnetics – One of the only U.S.-based NdFeB magnet producers with vertically integrated recycling.
https://www.noveon.co/Vital Metals – Operating mine in Canada with plans to supply rare earth concentrate to both U.S. and domestic refiners.
https://www.vitalmetals.com.au/
Critical Minerals Spotlight:
Neodymium (Nd) – Enables high-strength permanent magnets. Crucial for EVs, drones, wind turbines, and guided weapons.
Praseodymium (Pr) – Often paired with neodymium in magnets to improve temperature stability.
Dysprosium (Dy) – Increases magnet performance in high-heat environments; supply is concentrated in southern China.
Action Points:
Monitor permitting progress and funding allocation to U.S. and Canadian magnet plants.
Watch junior miners entering separation and magnet markets—especially those with recycling or refinery partnerships.
Track export control developments on rare earths, particularly from China, as trigger points for price surges.
Review exposure to neodymium-heavy EV and defense investments that lack diversified upstream supply.
https://444Critical.com
This update is for informational purposes only and is not financial or legal advice. Information is believed accurate but not guaranteed.