US Rare Earths Flow to Asia Amid Slow Domestic Demand
Original: US rare earths flow to Asia as domestic demand is slow to emerge
Why This Matters
Rare earth supply chain development is central to US national security and advanced manufacturing competitiveness.
Despite billions in US government backing, rare earth producers MP Materials, Energy Fuels, and Phoenix Tailings are selling primarily to Japanese and South Korean customers, as American domestic magnet manufacturing capacity remains too limited to absorb supply.
US rare earth companies backed by the Trump administration—including MP Materials, Energy Fuels, and Phoenix Tailings—are selling the bulk of their output to buyers in Japan and South Korea, as domestic US demand has yet to materialize at scale. China's ongoing export restrictions on rare earths and critical minerals have intensified global competition for alternative supplies, but the US magnet manufacturing industry remains nascent. Phoenix Tailings CEO Nick Myers stated that Japanese customers are 'clamoring' for rare earth metals and that his firm's customers are 'primarily in Korea and Japan,' warning that US defense contractors must act quickly or lose access. Phoenix is backed by IQT, a CIA-funded venture capital firm. MP Materials, the leading US rare earths producer, reported that sales of neodymium-praseodymium (NdPr) oxide and metal were 'primarily generated' via its agreement with Sumitomo Corporation of Americas for distribution to Japanese customers. MP has ceased sales to China's Shenghe Resources as part of its US government deal. The company has signed magnet supply agreements with General Motors and Apple, and expects to begin shipping finished magnets to GM in 2025. Industry expert Thomas Kruemmer noted that NdFeB magnets are currently only produced at scale in Japan and China, underscoring the gap the US supply chain must close.