Australian rare earths producer Lynas Rare Earths and US-based Noveon Magnetics have signed a memorandum of understanding (MoU) to establish a fully domestic, scalable supply chain for rare earth permanent magnets in the US.

The non-binding MoU sets the framework for collaboration across the entire rare earth value chain, from the supply of light and heavy rare earth oxides to the production of alloys and finished magnets. The companies intend to serve key US defence, automotive, and industrial customers, while ensuring the supply chain remains transparent, traceable, and aligned with national security interests.

“Partnering with Lynas Rare Earths will allow our two companies to build on our proven capabilities to accelerate the development of a secure and sustainable domestic magnet supply chain,” said Noveon Magnetics CEO Scott Dunn. “Together, we can offer a total solution today, not five years from now, that meets immediate US economic and national security needs while building greater capacity and ensuring long-term supply chain resilience for the US.”

The agreement comes amid intensifying global competition for rare earths. The US relies heavily on China for rare earth processing and magnet manufacturing, a dependence government and industry are seeking to reduce.

Lynas Rare Earths CEO and MD Amanda Lacaze said the partnership aligned with the company’s “Towards 2030” growth strategy and reinforced its commitment to building manufacturing supply chains outside China.

“By combining our world-class rare earths mining and processing expertise with Noveon’s proven downstream manufacturing capabilities, we can provide immediate and practical support to US manufacturers with a secure and traceable supply of high-performance magnets,” she said.

Under the agreement, both companies will work toward finalising a definitive partnership and engage closely with US government agencies and customers to ensure continuity of supply for critical applications. The collaboration will prioritise magnets used in national defence systems and critical infrastructure, while also supporting broader electrification and automation initiatives.

“This collaboration reflects our shared belief that sector-wide alignment and bold, coordinated action and leadership are essential to achieving supply independence,” said Dunn. “The time to act is now, and this partnership delivers what the market and the US government need most: capacity, certainty, and speed.”

Lynas, which operates the Mt Weld mine and processing facilities in Western Australia, remains the world’s only commercial producer of both separated light and heavy rare earths outside China. Noveon Magnetics, based in San Marcos, Texas, is currently the only operational US manufacturer of sintered rare earth magnets, with its proprietary EcoFlux process allowing the use of recycled materials to produce high-performance magnets.

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