US-backed rare earth miners sell output to Asia amid slow domestic demand

Miners backed by the Trump administration are exporting rare earth metals to Japan and South Korea, even as Washington pushes to build domestic supply chains.

MP Materials, the largest US rare earth producer by revenue, reported that its sales of neodymium-praseodymium (NdPr) oxide and metal were primarily routed through Sumitomo Corporation of Americas to Japanese customers, according to its latest quarterly earnings. The company also disclosed a first-quarter 2026 deal to supply an unnamed US technology and industrial company, marking a shift away from prior sales to China’s Shenghe Resources.

Energy Fuels, which secured $725 million in conditional government funding in June 2026, said it plans to send rare earth oxides to South Korea in the near term. The company is also acquiring Australian Strategic Materials, which operates a rare earth metal-making plant in South Korea, and announced a $1.9 billion agreement in June 2026 to purchase German magnet maker Vacuumschmelze (VAC), which could redirect more of its output to VAC’s US operations.

Phoenix Tailings, a startup backed by a CIA-funded venture capital firm, reported that its customers are “primarily in Korea and Japan,” with Japanese buyers “clamoring” for alternatives to reduced Chinese exports. Phoenix has not disclosed sales figures and is scaling up production with the help of a $500 million conditional grant from Washington.

Industry observers note that outside China, Japan produces between 10,000 and 15,000 tonnes of neodymium iron boron magnets per year, South Korea produces 2,000–3,000 tonnes, and the US produces 1,000 tonnes or less, underscoring the limited domestic magnet manufacturing capacity.

MP Materials has stated it intends to produce magnets at scale domestically, including supplying General Motors and Apple, and expects to begin shipping finished magnets to GM in 2026.