China has issued rare earth export licenses to at least four magnet producers, including suppliers to Volkswagen, after imposing restrictions last month, according to Reuters. The move signals that critical materials will continue flowing, mainly to Europe and Vietnam. Volkswagen reportedly sought Beijing’s help to secure the permits. The approvals came ahead of a trade truce with the U.S., raising hopes for eased access for American firms. The New York Times reports that China dominates the rare earth magnet industry, producing about 90% of the global supply through full control of the value chain, from mining to manufacturing, leaving global industries heavily reliant on its exports. Reuters writes:
China dominates the processing of the 17 rare earth elements used across clean energy, defence and automaking and companies have few, if any, alternative suppliers.
That dependence is demonstrated by Volkswagen’s intervention as well as lobbying from other big Western users. Elon Musk said last month Tesla was in talks with Beijing over licenses for its Optimus robots.[…]
In January, MP Materials began trial production of neodymium magnets in Texas, a rare step for the U.S. in a market dominated by China. The plant will supply General Motors and aims to scale up to 3,000 tonnes per year. Other U.S. projects are underway, but collectively remain small compared to China’s overwhelming control of both magnet and rare earth metal production. MP’s mine-to-magnet model is unique, but experts say high costs and China’s overcapacity will make U.S. competition difficult without sustained government support. MP writes:
MP Materials (NYSE: MP) has reached a pivotal milestone in restoring the U.S. rare earth magnet supply chain. The company’s flagship Independence facility in Fort Worth, Texas, has commenced commercial production of neodymium-praseodymium (NdPr) metal and trial production of automotive-grade, sintered neodymium-iron-boron (NdFeB) magnets. These achievements bring the U.S. closer to reestablishing a fully integrated, domestic supply chain for these critical components for the first time in decades.
“This milestone marks a major step forward in restoring a fully integrated rare earth magnet supply chain in the United States,” said James Litinsky, Founder, Chairman, and CEO of MP Materials. “With record-setting upstream and midstream production at Mountain Pass and both metal and magnet production underway at Independence, we have reached a significant turning point for MP and U.S. competitiveness in a vital sector.”
Maaden and MP Materials Collaborate to Establish Full Value Chain for Rare Earth Magnetics
Saudi Arabian Mining Company (Maaden) has signed an agreement with U.S.-based MP Materials to explore developing a fully integrated rare earth supply chain in Saudi Arabia. The partnership, announced at the U.S.-Saudi Investment Forum 2025, aims to jointly build capabilities in mining, separation, refining, and magnet production to support high-tech industries and diversify global supply chains. Leveraging Saudi Arabia’s resources and infrastructure, the collaboration seeks to position the Kingdom as a global hub for critical minerals and strengthen U.S.-Saudi strategic ties in advanced manufacturing. MP writes:
A Memorandum of Understanding (MoU) was signed on the sideline of the U.S.-Saudi Investment Forum 2025, taking place in Riyadh.
This agreement combines world-class exploration and processing expertise to advance and de-risk the development of potential Rare Earth Element (REE) deposits across Saudi Arabia as it continues to position itself as a world-leading player in the critical minerals sector. Maaden and MP Materials aim to explore opportunities to jointly develop a vertically integrated rare earth supply chain in Saudi Arabia, including mining, separation, refining, and magnet production, to drive industrial depth and create value for downstream sectors.
Rare earth magnets are essential components in critical technologies spanning transportation, energy, robotics, and aerospace. Leveraging Saudi Arabia’s competitive energy base, world-class infrastructure, and strategic location, this collaboration will diversify and expand the global rare earth supply chain, supporting rising demand from fast-growing industries.
