Rare earths from producers backed by Trump sold to Japan and South Korea

By the Editorial Team · Friday, July 10, 2026

U.S. rare earth producers funded by the government are primarily exporting critical minerals to Japan and South Korea due to stronger demand abroad and limited domestic procurement. Despite efforts to build a self-sufficient supply chain, the U.S. industry remains in early stages, with Asian markets continuing to dominate large-scale rare earth magnet manufacturing.

Rare earth elements produced by U.S. companies supported by government initiatives are being exported primarily to Japan and South Korea, reflecting the current state of the global supply chain despite efforts to build a domestic industry. Although former President Donald Trump’s administration prioritized establishing a national rare earth supply chain, demand within the United States has yet to reach significant levels.

The companies involved—including MP Materials, Energy Fuels, and Phoenix Tailings—have collectively received billions of dollars in funding and contracts from the U.S. government to boost production of rare earth metals. These critical minerals are essential to modern technologies, including electric vehicle batteries, semiconductor manufacturing, and defense systems, and have become a strategic focus for many Western countries due to China’s dominance in the sector and recent export restrictions imposed by Beijing.

Phoenix Tailings CEO Nick Myers reported strong interest from Japanese customers for the company’s rare earth metals, attributing this surge to China’s reduction in export volumes this year. His firm’s clientele is primarily based in Japan and South Korea. Myers warned that without faster procurement from U.S. defense contractors, his company risks selling its limited supply to foreign buyers willing to pay premium prices.

Industry experts noted that large-scale production of neodymium iron boron (NdFeB) magnets—key components in electronics and military equipment—is currently concentrated in Japan and China, while the United States is still in the early stages of scaling up manufacturing capabilities. Thomas Kruemmer, author of the Rare Earth Observer blog, emphasized the gap by pointing out that Japan remains a leader in magnet production alongside China.

MP Materials, based in Nevada and the largest U.S. rare earth producer, reported that most of its sales of neodymium-praseodymium (NdPr) oxide and metal—its primary revenue source—have been made through an agreement with Sumitomo Corporation of Americas, which distributes these materials to Japanese customers. The company’s recent financial filings also revealed sales to an unnamed U.S. technology and industrial firm. MP Materials has existing agreements with General Motors and Apple to supply magnets and anticipates beginning shipments of finished magnets to GM later this year.

Energy Fuels, which recently secured $725 million in conditional government funding, announced plans to ramp up rare earth production and similarly intends to export oxides to South Korea in the near term. CEO Ross Bhappu indicated that the company sees ongoing opportunities in Asian markets despite domestic ambitions.

While U.S. companies are actively developing rare earth mining and magnet production capabilities to reduce reliance on China, establishing a fully integrated domestic supply chain remains a work in progress. Meanwhile, producers continue to meet strong demand from established manufacturers in Asia.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.