Despite the Trump administration's push to establish a national supply chain, domestic demand in the United States has yet to materialize, leading to a flow of rare earths produced by Washington-backed U.S. companies to Japan and South Korea. Rare earth products from MP Materials, Energy Fuels, and Phoenix Tailings are currently being sold to Asian companies. These three companies have collectively received billions of dollars in government support, while the Asian market for magnet manufacturing is still far larger than the nascent U.S. domestic industry. Phoenix Tailings CEO Nick Myers stated that Japanese customers are "scrambling to buy" the company's rare earth metals, given the significant decline in Chinese rare earth metal exports this year. He said, "Unless major contractors (of the U.S. defense industry) act quickly, our products will be sold out…other companies are buying at higher prices and faster speeds." Industry insiders indicate that several U.S. companies have announced plans to mine rare earths and produce magnets domestically, but it will still take time for the U.S. rare earth industry to truly scale up. (Financial Times)
