Allied Nations Move to Close Rare Earth Magnet Bottleneck
Following the recent G7 Critical Minerals Action Plan, member states are turning rare earth permanent magnets into a top-tier strategic priority. While rare earth mining capacity is expanding in North America and Australia, the midstream processing and magnet manufacturing stages remain overwhelmingly concentrated in China. The G7 push is aimed at funding separation plants, alloy production, and final magnet manufacturing inside allied jurisdictions—often in partnership with private refiners like Korea Zinc that have multi-metal processing expertise.
Key Points:
G7 communique calls for coordinated investment in magnet supply chains, including NdPr separation and sintered/bonded magnet production.
https://www.g7hiroshima.go.jp/en/topics/2025-08-12-critical-minerals-joint-statement/Korea Zinc evaluating partnerships to expand rare earth separation and alloying capacity, potentially integrating with its planned nickel and cobalt refining hubs.
https://www.koreanzinc.co.kr/eng/USA Rare Earth advancing its Round Top project with magnet manufacturing plans in Texas, aiming to serve EV, defense, and wind turbine sectors.
https://www.usarareearth.com/news/Vital Metals continues rare earth concentrate output at Nechalacho, Canada, with a focus on finding allied midstream partners.
https://www.vitalmetals.com.au/
Why It Matters:
Defense and EV Overlap – Permanent magnets are essential in both military systems and EV drivetrains, making secure supply a dual-priority.
Midstream Choke Point – Without allied separation and alloying capacity, even domestically mined rare earths must be shipped to China for processing.
Strategic Partnerships – Firms with existing metallurgical and refining infrastructure (like Korea Zinc) can accelerate buildouts faster than greenfield projects.
Watchlist Companies:
Korea Zinc – Potential swing refiner in allied rare earth midstream strategy.
https://www.koreanzinc.co.kr/eng/USA Rare Earth – Developing mine-to-magnet capacity in Texas with federal and private funding.
https://www.usarareearth.com/news/
Critical Minerals Spotlight:
Neodymium (Nd) & Praseodymium (Pr) – Core to high-strength NdFeB magnets for EVs, wind turbines, and defense.
Dysprosium (Dy) – Improves magnet performance at high temperatures; supply is heavily concentrated in southern China.
Action Points:
Track funding announcements tied to the G7 Action Plan for rare earth midstream capacity.
Monitor Korea Zinc’s public statements for concrete project commitments in separation/alloying.
Watch for OEM and defense prime contracts linked to mine-to-magnet supply chains in the U.S., Canada, and Australia.
Evaluate exposure to NdPr producers that lack downstream integration—these will be under pressure to partner or sell.
https://444Critical.com
This update is for informational purposes only and is not financial or legal advice. Information is believed accurate but not guaranteed.