Rare Earth Separation Capacity Outside China
Facts checked against sources on . How we check facts.
Outside China, rare earth separation is dominated by one commercial producer, Lynas Rare Earths, which separated 7,260 tonnes of neodymium-praseodymium oxide and 62 tonnes of dysprosium and terbium in the year to June 2026. MP Materials produced 840 tonnes of NdPr in the June 2026 quarter, and at least five companies are developing commercial-scale heavy rare earth separation, but the US Geological Survey says none produced sustained commercial quantities of heavy rare earths in 2025. How the chemistry works is on the separation and processing page; this page covers who has capacity and how firm the figures are.
13,089 t
total rare earth oxide produced by Lynas in the year to 30 June 2026, including 7,260 t of NdPr
Source: Lynas 2026 Annual Report
840 t
NdPr produced by MP Materials in the June 2026 quarter, up 41% on a year earlier
Source: MP Materials Q2 2026 results
1 : 117
ratio of Lynas's dysprosium and terbium output (62 t, summed from its quarterly figures) to its NdPr output (7,260 t) in the year to June 2026, calculated
Source: Lynas June 2026 quarterly report
$150m
Department of War loan to MP Materials in August 2025 for heavy rare earth separation at Mountain Pass
Source: USGS rare earths (heavy)
Who can separate rare earths outside China?
The table lists the main operators and projects. The last column says what kind of source supports each statement, because company targets and press reports are weaker than filings or the USGS.
| Company and site | What is reported | Source type |
|---|---|---|
| Lynas, Malaysia and Western Australia | Cracking and leaching in Malaysia and mixed carbonate from Kalgoorlie. Year to June 2026: 13,089 t total oxide, 7,260 t NdPr, 62 t Dy and Tb. First samarium oxide in March 2026 (about 400 t a year first-step capacity, per its March 2026 quarterly report). Orders for critical equipment for an expanded heavy rare earth facility have been placed, at an estimated cost of about A$294 million including contingency, with gadolinium expected in early FY28. About US$96 million previously intended for a Texas heavy rare earth facility, which will no longer proceed, was reallocated to a four-year supply of oxides to the US government under a binding March 2026 letter of intent. | Company filings (annual report; March quarterly report) |
| MP Materials, Mountain Pass, California | NdPr output of 840 t in the June 2026 quarter. A $150 million Department of War loan funds heavy rare earth separation. MP also signed an offtake for separated gadolinium with a US aerospace and defense customer. | Company filing and USGS (MP, USGS) |
| ReElement Technologies, Marion, Indiana | The Department of War provided an $80 million loan in 2025 to a recycler in Marion, Indiana, and awarded $5.1 million to another recycler in Houston to recover rare earths including terbium and dysprosium. | USGS (heavy rare earths); company names from press |
| Brazilian ionic clay mine | Produces mixed concentrates with elevated terbium and dysprosium; the US Development Finance Corporation approved a $465 million loan in November 2025 to increase heavy rare earth production. | USGS (heavy rare earths) |
| Energy Fuels, White Mesa, Utah | Reported pilot production of about 1 kg of 99.9% terbium oxide in March 2026 and earlier dysprosium oxide; a heavy rare earth expansion targeting up to about 20 t of terbium and 120 t of dysprosium a year by the end of 2027. | Press reports of company statements; targets, not output |
| Iluka, Eneabba, Western Australia | Refinery reported at 17,500 t a year of rare earth oxide capacity with an A$1.65 billion government loan and commissioning in 2027. | Press reports; not verified against Iluka filings |
| Carester, Lacq, France | Reported as a French-Japanese-funded rare earth and magnet recycling and refining project with completion planned for autumn 2026. | Press report (SMM); plan, not output |
Where the table says press reports, the underlying company filing was not readable by this site's tools. Check the companies' latest quarterly reports before relying on a figure.
Why is heavy rare earth separation the bottleneck?
Heavy rare earths are the bottleneck because they are a tiny share of the ore and nearly all separation of them is done in China. Lynas's 62 tonnes of dysprosium and terbium in the year to June 2026, against 7,260 tonnes of NdPr, shows the scale. Adamas Intelligence says China produced over 99% of refined dysprosium and terbium and that availability outside China "has potential to be a near-term bottleneck" for the Western magnet industry. The USGS reports that US net import reliance for heavy rare earth compounds and metals was 100% in 2025. The balance of the 17 elements is on the light and heavy page.
How are governments supporting new capacity?
- Loans. The Department of War lent $150 million to MP Materials and $80 million to a recycler in Indiana, and the Development Finance Corporation approved $465 million for a Brazilian heavy rare earth producer.
- Floors and offtake. The $110 per kilogram NdPr floor appears in the MP Materials deal and in Lynas's agreements with Japan Australia Rare Earths and the US government. See offtake agreements.
- Tax and trade measures. Allied governments are discussing price floors in a preferential trade zone, according to CSIS, but the design remains to be determined.
What will change in the next two years?
Company schedules point to heavy rare earth output outside China starting in 2026-27, but they are targets. The International Energy Agency's 2026 outlook says planned refining capacity would reach only about two thirds of expected rare earth mine output in 2035 and that the top refiner's share would fall from 85% in 2025 to about 70% by 2035 if projects arrive on time. The dated record of Chinese restrictions that shape these plans is on the export controls page.
Frequently asked questions
Which companies separate rare earths outside China?
Lynas Rare Earths is the only commercial producer of separated light and heavy rare earth oxides outside China by its own account, and MP Materials produces NdPr in California. Energy Fuels, Iluka and others are developing capacity, with the USGS reporting that none produced sustained commercial quantities of heavy rare earths in 2025.
How much dysprosium and terbium is produced outside China?
Very little. Lynas reported 62 tonnes of dysprosium and terbium in the year to June 2026, made up of 9, 26, 8 and 19 tonnes in its four quarters, while Adamas Intelligence says China produced over 99% of refined dysprosium and terbium in recent years.
Is there rare earth separation in the United States?
The US has limited rare earth separation. The USGS reports US production of rare earth compounds and metals of about 8,900 tonnes in 2025, up from 120 tonnes in 2021, and a 2026 European Parliament study puts US separation capacity at about 15,000 tonnes a year against demand of about 45,000 tonnes.
When will heavy rare earth separation start outside China at scale?
Company targets point to 2026 and 2027, but there is no confirmed commercial-scale heavy rare earth separation outside China yet. Energy Fuels targets dysprosium and terbium circuits by the end of 2027, and Lynas has ordered critical equipment for an expanded Malaysian facility.
Sources
Read on October 12, 2026. Figures on this page come from these documents; where a number is an estimate, the source says so.
- Lynas Rare Earths: 2026 Annual Report and Appendix 4E (26 August 2026). Read on 14 October 2026
- Lynas Rare Earths: Quarterly report for the period ended 30 June 2026 (22 July 2026). Read on 14 October 2026
- Lynas Rare Earths: Quarterly report for the period ended 31 March 2026. Still the source for the first-step samarium capacity
- MP Materials: Second quarter 2026 results
- USGS Mineral Commodity Summaries 2026: Rare earths (heavy) and rare earths
- Adamas Intelligence: Rare Earth Magnet Market Outlook, top predictions for 2026
- SMM: Global rare earth recycling surges (31 August 2026). Secondary report
- Bloomsbury Intelligence and Security Institute (30 September 2026)
- CSIS: Critical Minerals Ministerial introduces new international cooperation strategy
