You’ve probably heard the name “Rare Earth Metals” or “Rare Earth Elements” dropped a lot in the recent year or two. But what are they exactly, and how can you tap into investing in this market?
Rare earth elements (REEs) comprise a group of 17 metallic elements essential to the tech sector. They are used in microchips, smartphones, electric vehicles, optics and have many military applications. Their rarity is derived the difficulty of economically extracting and refining them, rather than actual geological rarity.
Former President Donald Trump has frequently referenced rare earths in 2025. In February, he proposed that Ukraine supply the U.S. with rare earth minerals as compensation for nearly $300 billion in aid, stating:
“We’re telling Ukraine they have very valuable rare earths … we’re looking to do a deal with Ukraine where they’re going to secure what we’re giving them with their rare earths and other things” –Reuters
In the same vein, he claimed Ukraine had “essentially agreed” to provide $500 billion worth of rare earths in return for support.
However, President Trump was confusing actual rare earth elements with other critical minerals such as lithium or titanium, which are not technically part of the REE family.
Throughout early 2025, Trump expanded his administration’s focus on domestic critical minerals. On July 24, senior advisers announced plans to establish price floors to reduce investor risk and accelerate domestic rare‑earth projects. I will detail the current status below and explain why this may take time until domestic production fulfills the needs of American companies.
Why Is Rare Earth Experiencing a Bull Cycle in 2025?
Rising Demand & Falling Supply
Rare earth metals have entered a structural bull market in 2025, driven by unprecedented demand and tightening supply. These elements are integral to industries such as energy, transportation, defense, and microchip fabrication:
- Terbium plays a key role in efficient lighting and magnets.
- Dysprosium is critical in high‑temperature permanent magnets for electric motors.
- Neodymium and Praseodymium are main components of NdFeB magnets used in EVs and electronics.
- Rhenium, though not a rare earth, is a specialty metal vital to jet engines and catalysts.
Geopolitical instability, especially U.S. tensions with China, which controls roughly 90 % of rare earth refining, has restricted exports, boosting prices and elevating REEs to the center of strategic negotiations.
Price Movements (Jan 1–Aug 1, 2025)
Based on latest market data:
Terbium
- Jan 1, 2025: $1,396.50
- Aug 1, 2025: $1,983.40
- Change: +42.0%
Dysprosium
- Jan 1, 2025: $353.10
- Aug 1, 2025: $453.90
- Change: +28.6%
Neodymium
- Jan 1, 2025: $96.10
- Aug 1, 2025: $116.70
- Change: +21.4%
Praseodymium
- Jan 1, 2025: $96.10
- Aug 1, 2025: $115.40
- Change: +20.1%
Rhenium
- Jan 1, 2025: $2,485.90
- Aug 1, 2025: $3,726.10
- Change: +49.9%
Source: Earth Rarest (Rare Earth Metal Investment Broker)
Rare Earth Mining News
U.S. Development Accelerates, but Lag Remains
Efforts to build domestic REE capacity are underway, but progress will take time. For instance, MP Materials’ Texas facility began producing neodymium‑praseodymium metals in January 2025, marking the first U.S. rare earth refining capability in decades.
In May, MP Materials also joined forces with Saudi Arabia to build a new supply chain during Trump’s Middle East visit; in July, Apple pledged $500 million to support MP Materials under this strategic push.
Further, the U.S. awarded $10 million to develop a domestic scandium supply chain in Nebraska via Elk Creek Resources, under the Defense Production Act, a mineral outside of REEs but part of the broader critical‑minerals strategy initiated under Trump’s executive orders.
Meanwhile, startups like Earth AI and Terra AI are leveraging AI to accelerate exploration, though permitting delays and regulatory hurdles continue to impede faster scaling.
But, does this mean the US will be closing the gap soon? That is very unlikely. Below you can find all REE projects in the USA right now
- MP Materials – Mountain Pass, CA (Stage II/III)
- Product: NdPr oxide
- Nameplate Capacity: 5,000 t/yr by late 2026 (up from 1,300 t in 2024)
- MP Materials – “Independence”, Fort Worth, TX
- Product: Finished magnets
- Nameplate Capacity: 1,000 t/yr (ramp-up beginning Q4 2025)
- MP Materials – “10X Facility” (site to be determined)
- Product: Finished magnets
- Nameplate Capacity: 10,000 t/yr
- Note: Commissioning in 2028; projected to cover ~34% of expected U.S. magnet demand that year
- Noveon Magnetics – San Marcos, TX
- Product: Finished magnets
- Nameplate Capacity: “Low four-figure” t/yr line currently operational
- Note: First deliveries to GM in July 2025; GM & Nidec offtakes total ≈1,000 t over five years
- Lynas USA – Hondo & Seadrift, TX
- Product: Light-REE & Heavy-REE separation
- Nameplate Capacity: 5,000 t/yr LREE + 2,000 t/yr HREE oxide streams
- Note: Mechanical completion targeted for FY 2026
- Other DoD-funded projects (e.g., USA Rare Earth – Round Top, Energy Fuels – White Mesa, several recyclers)
- Product: Mixed oxides / concentrates
- Nameplate Capacity: Collectively less than 3,000 t/yr by 2027 (subject to permitting and financing)
As you can see, while tech demand for these materials is rising, the mining and refining capabilities in the US are unlikely to meet those demands domestically for at least 5 years.
Why does China control the prices?
China’s grip on rare earths is not merely a matter of mine output; it is an ecosystem of technology, policy, and geopolitics that is unlikely to loosen before the mid‑2030s.
Scale and vertical integration
- Mining: ~60 % of global REE mine production in 2024.
- Mid‑stream processing: 90 % of oxide separation and 99 % of heavy‑REE refining in 2025.
- Magnets: ~92 % of sintered NdFeB magnet manufacture, the highest‑margin stage.
Two state‑owned giants, namely China Rare Earth Group and China Northern Rare Earth Group, now control most quotas, R&D institutes, and export licenses after a decade‑long consolidation that cut hundreds of firms to a handful.
Knowledge & intellectual property moats
Beijing banned the export of extraction, separation and magnet‑making technology in December 2023, legally locking in its know‑how. Reuters
At the patent level, Chinese entities filed 47 % of all global applications in 2023, giving them a dominant share of process recipes, equipment designs, and alloy chemistries. WIPO
Policy levers that sway the market
- Production quotas: Annual growth capped at 5.9 % in 2024, tightening supply even as demand soars. Reuters
- Export licensing: New 2024 rules slowed approvals, temporarily halting shipments and triggering price spikes abroad.
- Strategic stockpile: The State Reserve Bureau routinely buys oxides when prices sag, putting a floor under domestic producers and a ceiling on foreign competition.
Control of heavy‑REE feedstock via Myanmar
China imports up to 50 % of global heavy‑REE ore from Myanmar’s Kachin state. When rebels seized the mines in late‑2024, Chinese terbium and dysprosium imports fell 89 % and prices jumped >20 %. Negotiations are ongoing, but Beijing’s technical expertise and offtake financing remain indispensable to restarting the sites.
Outlook: a decade of dominance
Even if every Western project now on the books starts on time, the International Energy Agency still sees China holding >70 % of refining and >80 % of magnet output in 2040.
Even with sustained multi‑billion‑dollar investments across mining, separation, metal, and magnet stages, China will remain the price‑setter for the next decade.
How to Invest Directly
Investors interested in gaining direct exposure to rare earth metals can turn to physical holdings through platforms that enable theme to buy Earth Rare Metals. Through such platforms which offer physical sales of metals such as neodymium, terbium, dysprosium, and praseodymium. These tangible assets track underlying price movements and offer a store of value apart from financial markets.
You can buy rare earth metals from $10,000 per investment here.
Be sure to account for purity, delivery logistics, storage costs, and premiums when purchasing; also consider regulatory reporting and the liquidity of resale markets. Physical investment may suit long‑term holds tied to industrial demand rather than quick trades. Interest in such holdings has surged amid bullish sentiment throughout 2025.
Disclaimer:
This content has been provided by Earth Rarest and is published as received. Earth Rarest is solely responsible for the information contained herein, including its accuracy and completeness.
This press release is for informational purposes only and does not constitute financial advice or an endorsement of any product or service. Readers should conduct their own research and consult a licensed financial advisor before making investment decisions.