Brent Berg / January 23, 2024

Leaders from key federal governmental agencies as well as the private sector came together last week in Bethesda, Maryland, to discuss how to address the challenges and opportunities that exist within the domestic rare earth (RE) supply chain. The participants were diverse, and the panel subjects were broad, as the group worked to define ways to develop a secure domestic supply while addressing legislative requirements that rare earths used in military and governmental applications be sourced outside of certain designated countries, including China.

This workshop was an effort by the National Defense Industrial Association (NDIA) to create a partnership between government and industry to accomplish change in the RE supply chain. As I sat with the stalwarts of the military sector and officials from the Departments of Defense, Energy and Commerce, I realized that we are starting to see development of the framework we have been seeking – a critical, nascent industry that can prosper through partnership, which will allow a resurgence of domestic capabilities while ensuring independence through security of supply. 

Statistics were shared about how U.S. defense applications account for appropriately 9% of worldwide RE supply. Further, the U.S. is nearly 100% dependent on NdFeB magnet imports, with approximately 75% coming from China and a majority of the other sources relying on China for raw materials. Members of academia noted the need for mine permitting reform as a key component to support domestic mine development. There was also discussion of the advantages Chinese firms have in terms of tax, trade and environmental policies as well as low-cost labor and energy, making it an uneven playing field and even more difficult for others to enter into and compete in the RE supply chain.

Magnet makers noted that extraction and separation were the pinch points in the supply chain. They talked about the investments they have made to develop these capabilities and suggested mechanisms like short-term government support through stockpile purchases at subsided prices, government assisted brokering, and tax credits. Most importantly, there was recognition that development of this industry within the defined domestic area, which includes the US, Canada, the UK, and Australia, would require upfront investment by both the government and the private sector along with longer term off-take agreements.

I was humbled to participate on a panel entitled Emerging Miners. I am pleased to say that it was clear that our relationship with General Atomics, our proprietary processing and separation technology, and the Bear Lodge Project have positioned us well. While there are many companies out there with rare earth deposits, they are still in the early-stage development or working to overcome the complexities of RE recovery technology. As we advance our technology with the demonstration plant, which is currently under construction, and continue to advance the Bear Lodge Project, with its significant, already well-understood mineral resource, we are poised to become a critical supplier of the domestic separated rare earths necessary for high-strength permanent magnet manufacturing.

Outside of the general conference and panel sessions, the majority of my conversations centered around possible synergies, interest in our progress, and how we can partner on government policy assistance. This workshop was a great event and should stand as a foundation for government agencies, academia, and the private sector to work together to advance a secure, domestic rare earth supply chain in the near term.