West Scrambles for Heavy Rare Earths Supply

Western governments and manufacturers are racing to secure heavy rare earths after Chinese export curbs disrupted supplies of dysprosium and terbium, crucial for high-temperature performance in EV motors, defence systems and some wind turbines.

MP Materials, backed by large US support, is moving from mining to magnet production and reported a 51% rise in processed light rare earth output this quarter, but its Mountain Pass deposit contains scant heavy elements (less than 1.8% medium and heavy REEs). The company plans a heavy separation facility next year targeting about 200 tonnes a year of dysprosium and terbium and aims ultimately for 10,000 tonnes a year of magnets, while also using recycled feedstock from suppliers such as Apple under a $500m deal.

Analysts warn Western supply remains heavily China-dependent — Benchmark projects 91% reliance for heavy rare earths by 2030 — and prices and processing costs outside China are much higher (dysprosium oxide at about $900/kg in Rotterdam versus $255/kg in China).

Companies including Lynas, VAC, Iluka and a range of miners are announcing projects and supply deals, but most face long lead times, higher costs and environmental challenges from certain extraction methods. Consultancies forecast significant deficits in dysprosium and terbium without faster development of mines and processing capacity.