U.S. Trade Proclamation Bolsters American Rare Earths' Halleck Creek Momentum

American Rare Earths Limited (ASX: ARR), a key player in the U.S. rare earths sector, has seen significant developments aligning with national supply chain security goals. On January 14, 2026, a U.S. trade proclamation under Section 232 of the Trade Expansion Act was issued, aiming to adjust imports of processed critical minerals like rare earths. This move addresses vulnerabilities in defense and advanced manufacturing by promoting domestic processing and reducing reliance on foreign sources, primarily China.

The proclamation directly supports ARR's flagship Halleck Creek project in Wyoming. In December 2025, the company achieved a major technical milestone by producing mixed rare earth oxide (MREO) from Halleck Creek ore. This process, involving precipitation of mixed rare earth oxalate and calcination at 1,000°C, demonstrated impressive recoveries: around 97% for rare earth elements and 98% for magnet-grade rare earths like neodymium and praseodymium. Uranium levels in the pregnant leach solution dropped dramatically from 1.27 ppm to 0.04 ppm through ion exchange, showcasing an efficient flowsheet for downstream separation into high-value products essential for permanent magnets in robotics, electronics, and clean tech.

ARR's resource base at Halleck Creek is massive, with a JORC-compliant estimate of 2.63 billion tonnes at 3,292 ppm total rare earth oxides (TREO), including both light and heavy varieties for multi-generational supply. Recent upgrades at the Cowboy State Mine area boosted the resource to 547.5 million tonnes at 1,000 ppm TREO cut-off, reclassifying 63.9 million tonnes to indicated category and incorporating high-grade channel samples up to 13,816 ppm TREO. Test mining of 3,080 tonnes was completed in September 2025, supporting beneficiation optimization and plans for a demonstration plant.

Leadership changes reinforce ARR's transition from explorer to producer. Effective January 5, 2026, Mark Wall was appointed CEO, bringing over 30 years of mining experience to drive the prefeasibility study (PFS) targeted for 2026, U.S. government funding pursuits, and potential U.S. listing. The company expanded its partnership with Tetra Tech in November 2025 to explore federal funding, leveraging Wyoming's mining-friendly regulations and state matching grants worth about A$8.8 million.

Another January 2026 highlight is ARR's collaboration with the University of Wyoming's School of Energy Resources. They secured a Seed Translational Acceleration of Research (STAR) award under an NSF-funded program to evaluate byproducts and tailings from Halleck Creek. This research will create a database of material properties, assess end-uses, and validate economic viability, potentially unlocking additional revenue streams and enhancing project sustainability.

These developments position ARR favorably amid rising demand for secure rare earth supplies. While stock reactions have been mixed—often flat or negative post-good news—the policy tailwinds, technical de-risking, and strategic partnerships signal strong progress. Investors eye the PFS, demonstration plant, and funding outcomes as next catalysts for Halleck Creek, which promises cost-efficient open-pit mining on state land to bolster America's mineral independence.