Latest news with #neodymium
Yahoo
08-07-2025
- Business
- Yahoo
Jefferies downgrades MP Materials as China eases rare earth restrictions
-- Jefferies has downgraded MP Materials to Hold, saying that a recent policy shift in China takes away the scarcity premium that has supported the US-listed rare earths producer's valuation. China's move to issue short-term export licences for rare earth magnets reduces the risk of near-term supply disruption and is likely to have a global policy response focused on expanding production capacity rather than constraining exports. China move makes it less likely that rare earth prices will spike sharply, weakening the case for re-rating MP shares in the absence of new demand catalysts. 'Even on generous assumptions -- a fly-up scenario, rapid expansion, elevated ROICs longer-term, and a lower equity risk premium -- we view the risk/reward as neutral, at best,' the analysts wrote. MP Materials operates the Mountain Pass mine in California and has ambitions to become a fully integrated producer of neodymium-praseodymium (NdPr) magnets used in electric vehicles, wind turbines, robotics and defence systems. MP could significantly expand earnings if it builds out downstream magnet production. Analysts estimate that scaling internal consumption of rare earth oxide could raise mid-cycle earnings to $650 million, and potentially $1.5 billion under a more ambitious build-out. But the capital required, up to $4 billion, and the risks around returns make the expansion case less compelling at current share levels. The analysts estimate the current valuation implies the market is already pricing in returns of 25 to 30 per cent on future magnet investments and applying a lower discount rate to MP's projected cash flows. The broker also cautioned against relying on another sharp price rally, or 'fear trade,' driven by policy risk or a demand spike from sectors such as robotics. While a tight market could trigger price gains, Jefferies said such spikes would likely prove temporary, with higher prices inviting new entrants and suppressing demand. Related articles Jefferies downgrades MP Materials as China eases rare earth restrictions Wells Fargo hit with downgrade, U.S. Bancorp rating bumped on profit rebound hopes RBC bullish on J. M. Smucker, says downside risks are 'baked in'
New York Times
08-07-2025
- Business
- New York Times
Europe Needs Rare Earth Metals. Can a Factory in Seaside France Supply Them?
In a squat warehouse not far from the Atlantic shoreline in La Rochelle, France, sits a cluster of giant metal tanks topped by gently whirring motors. They are a gamble on the future of European industry. Since April, the tanks have been purifying two rare earth minerals: a hot pink solution called neodymium and lime-green praseodymium. Both are turned into powder and then sold for use in permanent magnets — crucial materials in producing modern cars, wind turbines and military equipment. For now, the quantities being produced are experimental and tiny. Solvay, the Belgium-based company that owns the plant, will increase production only if it can find customers. 'We are just here signaling that we are available to Europe,' said Philippe Kehren, Solvay's chief executive officer. The company is an example of an unfolding trend. Europe is trying to get back into the rare earths business, but the barriers are towering, and whether it will succeed is uncertain. Rare earth minerals are critical components to advanced technologies in industries including energy and transportation. Most of these 17 important elements — difficult and often dirty to mine and refine at scale — come from China, which has spent decades becoming the dominant producer. Want all of The Times? Subscribe.
Daily Mail
04-07-2025
- Business
- Daily Mail
SMALL CAP MOVERS: A global rare earths champion emerges from AIM
Rare earth elements are not rare in the Earth's crust, but they are seldom found in concentrated forms, making them expensive and environmentally challenging to extract. This group of 17 metals, with names like neodymium, dysprosium and lanthanum, might sound obscure, but they underpin much of modern life. Their best-known use is in the magnets that power electric vehicles and wind turbines. Neodymium, for example, drives the tiny but powerful magnets found in everything from Tesla motors to iPhone speakers. Lanthanum is used in camera lenses and hybrid batteries. Others are essential for polishing glass, refining oil and even colouring TV screens. In the age of artificial intelligence, rare earths are increasingly strategic. Data centres and advanced computing systems rely on efficient cooling and high-performance hardware, both of which often use rare earth materials. But the global supply chain is lopsided. China controls over 80 per cent of processing, giving it enormous geopolitical leverage. Against this backdrop, a new international rare earths champion has emerged from AIM, though it won't remain on the junior market for long. Mkango, which recycles rather than mines these elements, saw its shares jump 77 per cent this week after announcing a merger that will create a dedicated global rare earths company listed on Nasdaq, with a valuation of $400million. In a flat week for blue-chip stocks, the AIM All-Share outperformed again, rising 1 per cent to 775.57. Risk appetite can be gauged by the buoyancy of the small-cap index, but another measure is fundraisings, with investors showing confidence by putting up cold, hard cash. It may be too early to declare AIM's renaissance, but green shoots are appearing in abundance. Last month saw around 50 (modest) investment rounds in the form of share placings, retail offers, direct subscriptions and more exotic structures such as convertible loan notes. The biggest beneficiary was The Smarter Web Company, whose backers got behind its Bitcoin treasury strategy with more than £70million of new investment. July began with a bang, and Thursday, in particular was a big day with fewer than seven companies top up their coffers. While crypto was inevitably a theme, the action spread across sectors. Miner Rockfire Resources and media tech firm Blackbird raised £2million each. Other beneficiaries were in oil and gas and gold. Among the risers was something of a mystery (at least to this grizzled market reporter) as shares in 4GLOBAL soared 150 per cent. The rally came despite the sports data firm confirming in June it would de-list from AIM on 7 July, citing rising costs, regulatory burdens and limited access to fresh capital. The company, which helps plan large-scale sporting events using data analytics, has issued no updates to explain the spike. Thruvision Group, the walk-through security specialist, ended the week a third higher. The catalyst was a fundraiser set to bring in at least £2.5million, extending its cash runway from year-end to 2027 and giving it room to scale up commercial plans. Now to this week's booby prize winners. Versarien, the graphene materials specialist, is nearing the end of its cash runway. It warned that without new financing it would be unable to pay its debts by August without taking 'additional restructuring action and raising further funds'. The shares tumbled 55 per cent. Crism Therapeutics is bringing in fresh funding, but at a cost. Shares were heavily discounted to 12p, down from 21p a week earlier. The resulting dilution from the £870,000 equity raise saw the stock plunge nearly 48 per cent. Finally, Solvonis Therapeutics has more than doubled in value since acquiring Canada-listed Awkn Life Sciences last month. Under CEO Anthony Tennyson, the business has been transformed from a failing polymers firm into a vibrant life sciences group working on cutting-edge treatments for conditions such as post-traumatic stress disorder. Its chief scientific officer is Professor David Nutt, one of the UK's most eminent researchers. There is an argument that the market is only just beginning to recognise Solvonis's true potential. It has a phase III asset developed to treat alcohol use disorder, one of society's most pernicious threats. Watch this space.
Zawya
13-06-2025
- Business
- Zawya
India moves to conserve its rare earths, seeks halt to Japan exports, sources say
India has asked state-run miner IREL to suspend a 13-year-old agreement on rare earth exports to Japan and to safeguard supplies for domestic needs, two sources familiar with the matter told Reuters, aiming to reduce India's dependence on China. IREL also wants to develop India's capacity for rare earth processing, which is dominated globally by China and has become a weapon in escalating trade wars. China has curbed its rare earth materials exports since April, pressuring automakers and high-tech manufacturers worldwide. In a recent meeting with auto and other industry executives, Indian Commerce Minister Piyush Goyal asked IREL to stop its exports of rare earths, mainly neodymium, a key material used in magnets for electric vehicle motors, one of the sources said. The Commerce Ministry, IREL and the Department of Atomic Energy, which oversees IREL, did not immediately respond to requests for comment. The sources declined to be identified because of the sensitivity of the matter. Under a 2012 government agreement, IREL supplies rare earths to Toyotsu Rare Earths India, a unit of Japanese trading house Toyota Tsusho, which processes them for export to Japan where they are used to make magnets. In 2024, Toyotsu shipped more than 1,000 metric tons of rare earth materials to Japan, commercially available customs data showed. That is one-third of the 2,900 tons mined by IREL, although Japan relies mainly on China for its rare earths supply. Toyota Tsusho and Toyotsu did not immediately respond to requests for comment. IREL has been exporting rare earths due to a lack of domestic processing capacity, but following the recent disruptions to supplies of Chinese material it wants to keep its rare earths at home and expand domestic mining and processing, a second source said, adding that IREL is awaiting statutory clearances at four mines. However, India may not immediately be able to stop supplies to Japan because they fall under a bilateral government agreement, the person said. IREL wants this to be "amicably decided and negotiated because Japan is a friendly nation", the person added. Japan's Trade Ministry said in a statement to Reuters: "We would like to refrain from answering questions about bilateral exchanges in general, not just about this matter." EXPANSION PLANS China's recent export controls on rare earth materials have rocked the global auto industry, which has warned of supply chain disruptions and production halts. China also weaponised its supplies in 2010, when it briefly stopped shipments to Japan. That prompted the Japanese to turn to India for rare earths. India has the world's fifth-largest rare earth reserves, at 6.9 million metric tons, but there is no domestic magnet production. India relies on imported magnets, mainly from China. In the fiscal year to March 2025, India imported 53,748 metric tons of rare earth magnets, government data showed. These are used in automobiles, wind turbines, medical devices and other manufactured goods. Rare earth mining is restricted to IREL, which supplies India's Atomic Energy Department with materials for nuclear power projects and defence-related applications. India lacks wide-scale technology and infrastructure to mine rare earths, and the development of any commercially viable domestic supply chain is years away, analysts said. IREL has a rare earths extraction plant in the eastern Indian state of Odisha and a refining unit in Kerala, in southern India. The miner, founded in 1950, plans to produce 450 metric tons of extracted neodymium in the fiscal year to March 2026 with a plan to double that by 2030, the second person said. It is also looking for a corporate partner for the production of rare earth magnets for the auto and pharmaceutical industries, the person said. India is firming up plans for incentives to companies to set up rare earth processing and magnet production facilities to meet local demand, people familiar with the matter told Reuters earlier this month. (Reporting by Neha Arora and Aditi Shah in New Delhi; Additional reporting by Jekaterina Golubkova and Maki Shiraki in Tokyo; Editing by Edmund Klamann)
Reuters
13-06-2025
- Business
- Reuters
Exclusive: India moves to conserve its rare earths, seeks halt to Japan exports, sources say
NEW DELHI, June 13 (Reuters) - India has asked state-run miner IREL to suspend a 13-year-old agreement on rare earth exports to Japan and to safeguard supplies for domestic needs, two sources familiar with the matter told Reuters, aiming to reduce India's dependence on China. IREL also wants to develop India's capacity for rare earth processing, which is dominated globally by China and has become a weapon in escalating trade wars. China has curbed its rare earth materials exports since April, pressuring automakers and high-tech manufacturers worldwide. In a recent meeting with auto and other industry executives, Indian Commerce Minister Piyush Goyal asked IREL to stop its exports of rare earths, mainly neodymium, a key material used in magnets for electric vehicle motors, one of the sources said. The Commerce Ministry, IREL and the Department of Atomic Energy, which oversees IREL, did not immediately respond to requests for comment. The sources declined to be identified because of the sensitivity of the matter. Under a 2012 government agreement, IREL supplies rare earths to Toyotsu Rare Earths India, a unit of Japanese trading house Toyota Tsusho (8015.T), opens new tab, which processes them for export to Japan where they are used to make magnets. In 2024, Toyotsu shipped more than 1,000 metric tons of rare earth materials to Japan, commercially available customs data showed. That is one-third of the 2,900 tons mined by IREL, although Japan relies mainly on China for its rare earths supply. Toyota Tsusho and Toyotsu did not immediately respond to requests for comment. IREL has been exporting rare earths due to a lack of domestic processing capacity, but following the recent disruptions to supplies of Chinese material it wants to keep its rare earths at home and expand domestic mining and processing, a second source said, adding that IREL is awaiting statutory clearances at four mines. However, India may not immediately be able to stop supplies to Japan because they fall under a bilateral government agreement, the person said. IREL wants this to be "amicably decided and negotiated because Japan is a friendly nation", the person added. Japan's Trade Ministry said in a statement to Reuters: "We would like to refrain from answering questions about bilateral exchanges in general, not just about this matter." China's recent export controls on rare earth materials have rocked the global auto industry, which has warned of supply chain disruptions and production halts. China also weaponised its supplies in 2010, when it briefly stopped shipments to Japan. That prompted the Japanese to turn to India for rare earths. India has the world's fifth-largest rare earth reserves, at 6.9 million metric tons, but there is no domestic magnet production. India relies on imported magnets, mainly from China. In the fiscal year to March 2025, India imported 53,748 metric tons of rare earth magnets, government data showed. These are used in automobiles, wind turbines, medical devices and other manufactured goods. Rare earth mining is restricted to IREL, which supplies India's Atomic Energy Department with materials for nuclear power projects and defence-related applications. India lacks wide-scale technology and infrastructure to mine rare earths, and the development of any commercially viable domestic supply chain is years away, analysts said. IREL has a rare earths extraction plant in the eastern Indian state of Odisha and a refining unit in Kerala, in southern India. The miner, founded in 1950, plans to produce 450 metric tons of extracted neodymium in the fiscal year to March 2026 with a plan to double that by 2030, the second person said. It is also looking for a corporate partner for the production of rare earth magnets for the auto and pharmaceutical industries, the person said. India is firming up plans for incentives to companies to set up rare earth processing and magnet production facilities to meet local demand, people familiar with the matter told Reuters earlier this month.
