US firms unite to break China's grip on rare earth magnet production by 2027

Ucore Rare Metals and Vulcan Elements have agreed to work together on domestic rare earth magnet production. The partnership aims to cut dependence on China, which currently leads in processing and manufacturing these critical materials. Both firms will now focus on building a fully US-based supply chain by 2027. The two companies signed a memorandum of understanding to secure a steady flow of rare earth oxides for magnet production. Ucore will supply neodymium-praseodymium and dysprosium oxides to Vulcan, with initial samples expected in 2026 and full-scale deliveries by 2027. These materials are vital for electric vehicles, wind turbines, and military applications.

Over the next year, they will refine technical details, purity requirements, and production methods. Challenges include scaling up separation processes at Ucore's Louisiana plant and optimising magnet output at Vulcan's Colorado site. Regulatory hurdles remain, such as securing US Department of Energy funding, environmental permits, and compliance with federal procurement rules by March 2027.

Ucore has already received $18.4 million from the US Department of Defense to upgrade its Louisiana facility. Meanwhile, Vulcan is supported by a $1.4 billion government partnership to construct a major magnet plant in North Carolina. The collaboration connects Ucore's refining operations with Vulcan's manufacturing base, forming a complete US supply chain from raw materials to finished magnets. The deal aligns with a wider push across North America to boost local production of critical minerals. A successful partnership would reduce reliance on foreign suppliers while supporting industries like clean energy and defence. Full commercial production is set to begin in 2027, provided technical and regulatory milestones are met.