Why the US is becoming a rare earth mine-to-magnet destination

Announcements in the US rare earths space in 2026 shows capital being deployed not only into mining, but also into separation, refining, metallisation, alloy production, magnet manufacturing, and recycling.

This indicates that the US is increasingly targeting the full mine-to-magnet value chain rather than isolated project stages. This is a meaningful shift from the more upstream focused investment of previous years.

The most recent development in this regard is Energy Fuels’ acquisition of magnet maker Vacuumschmelze (VAC) for a total cash-and-stock consideration of ~$1.9 billion. This deal builds on Energy Fuels’ previous deals with magnet producers and the rare earth metals producer Australian Strategic Materials.

A key reason the US has become more attractive for rare earth investment is the scale and structure of public support. Federal and state authorities are using layered financing mechanisms, including grants, loans, tax incentives, milestone-based reimbursements, and strategic offtake arrangements, to reduce project risk and improve bankability.

“Overall, 2026 developments suggest the US is becoming one of the most credible non-China destinations for rare earth value chain investment,” said Neha Mukherjee, Benchmark’s research manager for rare earths. “Support is now extending across the full mine-to-magnet chain, with increasing focus on the most strategically important midstream and downstream segments."

China accounts for 71% of light rare earths processing, 99% of heavy rare earth processing and 94% of magnet production, according to Benchmark’s Rare Earths, Magnets & Motors Service. By developing US-centric supply chains, these companies aim to show that China’s hegemony can be mitigated.

Who is building US-centred rare earth supply chains?

Benchmark has mapped out five sets of mine-to-magnet supply chains in development in the US. MP Materials is the only company to control all stages of the supply chain. The other three are possible through offtake agreements and acquisitions.

USA Rare Earth, for example, combines federal support, state incentives, private capital, and international partnerships to build a multi-site platform linking feedstock, processing, and magnet production.

In addition to the full mine-to-magnet supply chains being built out, several companies are operating mines elsewhere in the world but have refining facilities under development in the US: Lynas Rare Earths, Pensana, Ionic Rare Earths, Aclara Resources, and Realloys.

How is policy impacting US rare earths supply chains?

The strongest policy and investment emphasis is now on the midstream, particularly separation, refining, and metallisation. Department of Energy and Department of War-linked funding signals a growing recognition that these stages represent the main bottlenecks in building an ex-China rare earth supply chain. At the same time, domestic magnet manufacturing is becoming a clearer industrial objective, with new capacity planned in Oklahoma and South Carolina.

Another notable development is the emergence of government-backed price support and offtake mechanisms, such as the NdPr floor price agreed with Lynas. These measures help address one of the sector’s longstanding constraints: weak revenue certainty.

The US is also positioning itself as the centre of a broader allied rare earth system, linking domestic projects with partners in Australia, Brazil, France, Japan, and Canada. Support for unconventional feedstocks and recycling further broadens the domestic investment base.

This insight draws from Benchmark's comprehensive Rare Earths, Magnets & Motors Service, consisting of IOSCO-assured rare earth prices and supply chain data with granular end-use demand analysis. By bringing integrated clarity to these critical markets, this subscription facilitates smarter investment decisions, strategy planning and execution, and successful commercial outcomes. To learn more, submit your details below and our team will be in touch: