Rare Earths MMI: U.S. Rare Earth Strategy: What’s Behind the Latest Moves?

The Rare Earths MMI (Monthly Metals Index) moved sideways from September to October, rising by 2.13%. Over the last two weeks, U.S. officials have signaled a decisive shift in how they secure critical minerals. Analysts have taken note of large global rare earths projects aimed at diversifying away from Chinese dominance, which currently accounts for approximately 90% of rare earth processing capacity. 

How is USA Rare Earth Reshaping the Supply Chain?

U.S.-listed USA Rare Earth (USAR) is currently pursuing its own mine-to-magnet strategy. On September 29, the company announced a $100 million cash acquisition of British alloy maker Less Common Metals (LCM). Also included in the purchase price were 6.74 million USAR shares. The deal aims to create the first integrated producer of rare earth metals and magnets outside China while generating immediate revenue for USAR. 

The company’s expansion also includes leadership changes, with former Siemens USA CEO Barbara Humpton taking over as USAR’s chief executive on October 1. According to the company, Humpton will help guide USAR’s transition from exploration to full-scale manufacturing.

USAR’s executives have also been in discussions with White House officials. In a CNBC interview, CEO Humpton said the company is in talks with the Trump administration about potential government support. This follows U.S. investments in other mineral projects and underscores growing political momentum to secure domestic supply chains.

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Why Are China and Malaysia Discussing a Refinery Joint Venture?

China and Malaysia are in early talks to build a rare earths processing facility in Malaysia. Sources told Reuters that Malaysian sovereign wealth fund Khazanah Nasional could partner with a Chinese state‑owned firm. In exchange for access to Malaysia’s estimated 16.1 million metric tons of rare earth reserves, Beijing may offer valuable processing technology, even though China has long banned exports of such technology to protect its dominance.

The talks highlight strategic shifts in the Asian market. This comes as China seeks to limit competition from Australian producer Lynas, which already operates a processing plant in Malaysia. A successful joint venture could position Malaysia as one of the few countries with both Chinese and non‑Chinese processing technology.

How Are Rare‑Earth Prices Behaving, and What Does it Mean for Buyers?

The rare earths market is splitting up into two distinct segments: light elements (such as neodymium and praseodymium) and medium‑to‑heavy elements (including dysprosium and terbium). According to Shanghai Metal Market assessments reported by Discovery Alert, light rare‑earth oxides have remained stable as suppliers hold firm due to production costs. SMM notes that producers are unwilling to cut prices due to raw material costs creating a price floor.

In contrast, demand for medium-heavy elements remains weak. The same SMM report observes that buyers are deferring purchases, volumes are low and suppliers are cutting prices to stimulate sales. This divergence underscores the need for procurement teams to differentiate between these segments when negotiating contracts.

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What Should C‑Suite Leaders Do Now?

For U.S. procurement and finance executives, the implications are clear. For starters, they should closely monitor government equity moves, as Washington’s willingness to take direct stakes in projects like Tanbreez suggests future deals are likely. Staying informed of the latest moves regarding rare earths can ultimately help companies anticipate supply shifts.

Diversifying sourcing strategies is equally important. For instance, the potential China-Malaysia joint venture shows that Asia’s supply landscape is evolving. U.S. buyers should cultivate relationships with non-Chinese suppliers and explore partnerships with domestic projects such as USAR’s Texas mining operation.

Executives should also segment their procurement approaches. Light rare-earths exhibit stable pricing thanks to production cost floors, while medium-heavy elements face demand-driven volatility. Negotiation strategies should reflect these differences.

Finally, investing in market intelligence is essential. Tracking price movements and policy changes provides a vital edge. As Trading Economics notes, neodymium prices were flat in September but 45.6% higher than a year earlier. Understanding trends like these can lead to better-informed budgeting and hedging decisions.

Rare Earths MMI: Noteworthy Price Shifts

Read the 5 golden rules on how to save money when sourcing metals.

• Cerium oxide prices rose 7.46% to $1,572.59 per metric ton.
• Neodymium prices moved sideways, dropping a slight 0.66% to $106,882.99 per metric ton.
• Praseodymium oxide prices increased 7.34% to $95,006.45.
• Lastly, terbium metal prices rose 3.55% to $1,310.05 per kilogram.