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American Rare Earths and Novex set MoU to process rare earth oxides
The framework links Wyoming rare earth oxide production to conversion into metals for permanent magnets, targeting a key supply bottleneck dominated by China.
American Rare Earths has entered a memorandum of understanding with US-based Novex to develop a mine-to-magnet supply chain centered on rare earth oxides, with the companies aiming to convert materials from Wyoming into metals used in permanent magnets. Under the MoU, Novex would receive neodymium-praseodymium oxide from American Rare Earths’ demonstration plant for conversion into rare earth metal. The two firms also plan to work on process optimization and the design of a domestic rare earth metal production facility.
The companies said oxide-to-metal conversion remains a bottleneck in magnet manufacturing, with most supply controlled by China. They pointed to China’s April 2025 export licensing requirements for several rare earths used in high-temperature and defense-grade magnets, and to a rule from January 2027 that would bar US defense contractors from using magnets containing rare earth elements mined, refined, or separated in China.
The agreement follows American Rare Earths’ review of multiple metallization technologies, which it said identified molten salt electrolysis as the most suitable primary candidate for development, while lanthanothermic reduction will be held in reserve for certain metals. Novex has previously developed similar oxide-to-metal processes and operates a technology center in Bellingham, Washington, and the parties plan to finalize a long-term supply and collaboration agreement within 12 months.