America Needs 48,000 Tons of Rare Earth Magnets. It Only Makes 300
Greenpeace Protest Forces Shutdown at Woodside’s $12.5 Billion Gas Project Escalating Iranian attacks on commercial… Josh Owens is the Content Director at Oilprice.com and a veteran energy journalist with over a decade of experience covering global energy markets and geopolitics.… Last year, America needed roughly 48,000 metric tons of the most common rare earth magnet, and domestic sourcessuppliedjust 300 tons.
The rest had to come from somewhere else, and China makesmore than 90%of the world's supply.
To make matters worse, in January, that supply gets cut from both directions.
On January 1, the Pentagon's ban on Chinese magnets in its supply chain takes effect, and just nine days later, China's toughest rare earth rules could snap right back into place.
That’s exactly the problem REalloys (NASDAQ: ALOY) has been working to help solve.
The company isbuildinga heavy rare earth supply chain outside of China, from processing in Saskatchewan to metal-making in Ohio.
To understand why that's such a problem for America's defense contractors, you have to start with what the Pentagon is actually seeking.
For years, the Pentagon has had a rule that keeps Chinese magnets out of the weapons it buys, known as DFARS.
But that rule only covered the last few steps of making a magnet.
Starting January 1, 2027, itcoversthe entire supply chain, from mining the ore all the way to the finished magnet.
That means if any step along the way happens in China, Russia, Iran, or North Korea, a defense contractorcan’t deliverthat magnet to the Pentagon.
So if you’re building missile guidance systems, drone motors, or fighter jets, you now have to know where every magnet came from, all the way back to the ore inside the magnets.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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