Investment in critical minerals is increasingly extending beyond mining projects into separation, refining, alloy production and recycling, particularly in the rare-earth supply chain. In France, Carester is developing the Caremag plant at Lacq, which is designed to process approximately 2,000 tonnes per year of recycled permanent magnets and around 5,000 tonnes per year of mineral concentrates.
The planned facility is expected to produce about 800 tonnes per year of NdPr oxide, 500 tonnes per year of dysprosium oxide and 100 tonnes per year of terbium oxide. In Germany, Mkango Resources’ Remloy operation at Bitterfeld is targeting at least 500 tonnes per year of NdFeB alloy powder from recycled magnets. Mkango’s €8 million acquisition also included approximately 345 tonnes of magnet, alloy and other feedstock inventory.
Rare-Earth Processing Moves Closer to End Users
These projects address supply-chain requirements beyond the availability of mineral deposits. Rare-earth oxides, alloys and magnet materials must meet precise specifications before entering automotive, defence and electronics supply chains. Processing facilities capable of producing materials to those specifications can therefore play an important role despite having smaller physical scales than mining operations.
Recycling provides additional sources of feedstock. Permanent magnets can be processed through several recycling routes, depending on the material and required product.
Recycling Routes and Feedstock Flexibility
A short-loop process retains as much existing magnet material as possible, while a medium-loop route remelts material into new alloy. A long-loop process chemically separates magnets into individual rare-earth compounds. The economic objective is to use the shortest processing route compatible with the available feedstock and customer specifications.
Downstream facilities can also obtain material from multiple sources, including different mines, rather than depending on a single deposit. The risks consequently differ from those associated with mining. Feedstock availability, commissioning, utilisation rates and customer qualification become key considerations alongside processing performance.
Supply-Chain Dependence and Processing Capacity
Western countries can possess substantial mineral resources while remaining dependent on external processing if concentrates or intermediate materials must be shipped elsewhere for separation, refining or alloy production. The growing focus on downstream assets reflects the importance of converting mined or recycled material into products that industrial customers can directly use. For critical minerals, investment is therefore increasingly extending along the supply chain from raw feedstock to qualified end-use material.
