New Chinese restrictions on rare earth metal exports could severely impact Europe’s automotive industry, warned Roberto Vavassori, chairman of Italy’s auto parts association ANFIA, during the ForumAutoMotive conference in Milan on Tuesday.
Despite a July agreement intended to streamline shipments to Europe, China has continued to maintain tight control over rare earth exports, recently expanding its export curbs even further. The country currently refines and processes the majority of the world’s rare earths, materials essential to key sectors including automotive manufacturing, semiconductors, and defence.
Vavassori noted that while European manufacturers had so far managed to sustain production despite previous supply cuts, reserves of rare earth metals are now nearly exhausted.
“That reserves’ buffer is not there anymore,” he said, warning that further disruptions could quickly ripple through Europe’s automotive supply chain.
Rare earth elements are critical for producing electric motors and other advanced vehicle components, making them indispensable to Europe’s electric vehicle ambitions.
Although the global rare earth industry is relatively small — valued at less than $5 billion — Vavassori emphasized that its strategic importance far outweighs its market size.
“This small industry is capable of slowing down the entire global auto sector,” he cautioned.
European Lithium (ASX: EUR) has generated an additional $50 million (A$76 million) through the sale of 3.85 million shares in Nasdaq-listed Critical Metals Corp (CRML) to a single U.S. institutional investor.
The off-market transaction was executed at $13 per share, representing a 12% discount to CRML’s Friday closing price of $14.98. The sale follows a notable surge in CRML’s share price and trading activity on the Nasdaq, reflecting strong investor confidence in the company’s strategic position within the global critical minerals market.
Executive chairperson Tony Sage said the deal underscored the robust demand for CRML stock.
“The recent price increase and the large trading volumes on the Nasdaq show the demand for CRML shares is huge,” Sage commented.
Following the sale, European Lithium retains 56 million CRML shares, valued at approximately $854 million (A$1.29 billion) based on the latest closing price.
“The company’s holding in CRML equates to A$0.89 per EUR share,” Sage added. “EUR also holds a direct 7.5% interest in the Tanbreez project, and given CRML’s current market valuation of A$2.3 billion, this equity interest is very strategic.”
European Lithium continues to advance its exploration and development portfolio across Austria, Ireland, Ukraine, and Australia, focusing on lithium and rare earth elements critical to the clean energy transition.
Meanwhile, Critical Metals Corp (CRML) is strengthening its position as a major supplier of critical minerals to Western markets. Its flagship Tanbreez rare earth project in Greenland ranks among the world’s largest deposits, while its Wolfsberg lithium project in Austria—the first fully permitted lithium mine in Europe—is expected to play a key role in supporting the region’s battery and electric vehicle industries.
CRML also holds a 20% interest in several Austrian mineral projects previously owned by European Lithium, building what it describes as a “strategic asset portfolio” supporting next-generation technologies and the global energy transition.
Turkey is in talks with the United States to jointly develop rare earth reserves in western Anatolia, signaling a potential pivot toward its NATO ally after similar negotiations with China and Russia stalled over disagreements on technology transfer and refining rights.
According to people familiar with the discussions, Ankara and Washington are exploring a partnership to develop the Beylikova deposit, located near Eskisehir in central Anatolia. The site is believed to contain cerium, praseodymium, and neodymium—key elements used in magnets, electronics, and defense applications—though the exact quality of the reserves remains under assessment.
The discussions come as the two countries seek to deepen cooperation in energy and defense, following a meeting between Presidents Donald Trump and Recep Tayyip Erdogan at the White House last month. If finalized, a joint refining agreement could replace a provisional deal with China, which faltered after Beijing insisted on processing the materials in China rather than transferring refining technology to Turkey.
Talks with Russia also failed to produce results, sources said. Turkey’s Energy and Natural Resources Ministry declined to comment.
Ankara plans to construct a local refinery in Beylikova, where ore samples have shown a rare earth oxide content exceeding 1% by weight, indicating commercial viability. Turkey is also engaging with Canada and Switzerland for potential cooperation on feasibility studies to advance the project.
To attract investors and ensure transparency, the government intends to apply to the Australian Institute of Geoscientists for JORC Code certification, which establishes international standards for reporting exploration results and resource estimates.
The move aligns with broader Western efforts to reduce reliance on China, which currently dominates more than 80% of global rare earth production and processing. Both the US and EU have intensified efforts to secure alternative sources of critical minerals essential for defense, renewable energy, and high-tech manufacturing.
Turkey, which has long balanced relations between the West and China, joined a US-EU-led initiative in 2024 to diversify critical mineral supply chains. However, it has also attracted Chinese investment in electric vehicle production and has been offered partner-country status in the BRICS bloc.
Ankara continues to emphasize technology transfer and local value creation in its foreign partnerships, including existing cooperation with Boeing and Lockheed Martin.
The Trump administration is in talks to acquire an equity stake in Critical Metals Corp, giving Washington a direct interest in Greenland’s Tanbreez rare earth project — one of the world’s largest undeveloped deposits, four people familiar with the matter told Reuters.
If completed, the deal would mark a significant political and strategic move for the United States, deepening its role in Greenland’s mineral sector — the same Arctic territory former President Donald Trump once proposed purchasing outright.
Critical Metals, a New York–based company, acquired the Tanbreez project in 2024 for $5 million in cash and $211 million in stock, after the Biden administration successfully pushed for the sale to a Western buyer rather than a Chinese firm.
The company has since applied for a $50 million grant under the Defense Production Act, a Cold War-era program that supports domestic production of materials essential for national security. According to three sources, the administration has begun discussions about converting that grant into an equity stake worth roughly 8%, although negotiations remain preliminary.
A senior Trump administration official told Reuters that “hundreds of companies” had approached Washington seeking investment, and that “there is absolutely nothing close with this company at this time.”
Critical Metals did not respond to requests for comment. Greenland, while self-governing, remains part of Denmark, whose embassy in Washington also declined to comment.
The Tanbreez deposit, located in southern Greenland, is considered a cornerstone for Western efforts to diversify rare earth supply chains away from China, which currently dominates more than 80% of global production and processing. The project also hosts valuable gallium and tantalum, both of which are under Chinese export restrictions.
Bringing the mine to commercial operation is expected to cost $290 million, with production forecast at 85,000 tonnes of rare earth concentrate per year by 2026. The U.S. Export-Import Bank (EXIM) is separately considering a $120 million loan to support mine development, according to sources.
The potential U.S. investment follows other government-backed moves in the sector, including stakes in Lithium Americas and MP Materials, underscoring Washington’s strategy to secure critical minerals for electric vehicles, defense systems, and renewable technologies.
Even before Trump’s renewed engagement with Greenland, the U.S. had maintained a longstanding presence on the island — including one of its largest Air Force bases — and successive administrations have sought to increase economic and strategic cooperation.
Analysts note that the harsh Arctic environment and Greenland’s slow regulatory processes remain challenges to large-scale mining. However, the project could play a central role in the West’s efforts to counter China’s dominance in the rare earth supply chain.
USA Rare Earth (Nasdaq: USAR) announced it will acquire Less Common Metals (LCM), a UK-based producer of rare earth metals and alloys, in a $100 million cash-and-stock deal designed to accelerate its vertically integrated mine-to-magnet strategy.
Under the terms of the agreement, USAR will pay $100 million in cash and issue 6.74 million common shares to complete the transaction. At the time of the announcement, USAR shares traded at $18.70, but have since climbed nearly 30% to $23.36, giving the company a market capitalization of $2.61 billion.
LCM operates a 67,000-square-foot facility in Cheshire, England, and is one of the only companies outside China capable of producing both light and heavy rare earth permanent magnet metals and alloys at scale. Its product portfolio includes samarium, samarium cobalt, neodymium-praseodymium, dysprosium, terbium, yttrium, and gadolinium — all critical materials for defense, automotive, and renewable energy technologies.
“The acquisition of LCM is a bold and transformative leap forward for our company and the domestic rare earth industry,” said Michael Blitzer, chairman of USA Rare Earth. “Midstream metal making is the linchpin of the global supply chain, and LCM is the only proven ex-China producer of rare earth metal, alloys, and strip casting at scale.”
The acquisition comes as USA Rare Earth continues to develop a sintered neodymium magnet manufacturing facility in Stillwater, Oklahoma. The plant is expected to begin commercial production in the first half of 2026, with an annual capacity of 5,000 metric tons, or hundreds of millions of magnets.
The facility will be supported by feedstock from the company’s Round Top deposit in West Texas, where USAR recently produced its first sample of dysprosium oxide, a heavy rare earth used in semiconductors, EV motors, wind turbines, and defense applications.
Blitzer added that the USAR-LCM combination will re-establish rare earth metal production in the United States for the first time in decades, while also expanding LCM’s capabilities across the UK and Europe to strengthen the global supply chain outside China.
Britain is preparing to sign a landmark critical minerals partnership with Greenland, a move aimed at securing access to the Arctic island’s vast reserves of rare earths and reducing reliance on Chinese supply chains. Sources familiar with the talks told POLITICO that the agreement could be announced during Prime Minister Keir Starmer’s visit to Copenhagen this week for the European Political Community summit.
Greenland, a self-ruling Danish territory, hosts 40 of the 50 minerals the United States deems essential to national security, including uranium and graphite. These resources are increasingly vital for global supply chains powering electric vehicles, renewable energy, and advanced technologies.
The U.K. Department for Business and Trade stressed that securing critical minerals is central to Britain’s industrial strategy, growth, and clean energy transition. Trade Minister Chris Bryant hinted earlier this week that new trade talks were imminent, without naming the country involved.
Analysts caution that while Greenland’s mineral wealth presents an opportunity, the financial and environmental costs of extraction remain high. Environmental standards and indigenous community participation will be key to securing local support. Greenland has previously revoked mining licenses over radioactive waste concerns, underscoring the political and ecological sensitivities.
The deal also carries political implications. Greenland’s revenues from mining could reduce its reliance on Denmark’s annual block grant, potentially strengthening its independence. However, experts warn that London must coordinate with Denmark, Nordic states, and the EU to avoid tensions, particularly as Brussels already signed a minerals partnership with Greenland in 2023.
Even if secured, extraction is only part of the challenge. Most refining of rare earths and critical minerals still occurs in China. Without parallel investment in processing capacity elsewhere, Europe and the U.K. risk remaining tied to Chinese supply chains despite new mining agreements.
Critical Metals Corp (Nasdaq: CRML) will increase its ownership in the Tanbreez rare earth project in southern Greenland from 42% to 92.5%, securing control over one of the world’s largest rare earth deposits, major shareholder European Lithium (ASX: EUR) confirmed on Thursday.
The revised agreement involves Critical Metals issuing 14.5 million shares to Rimbal Pty Ltd, a company controlled by project founder Gregory Barnes, at $8 per share – a 23% premium to the company’s last closing price of $6.49. The transaction is valued at $116 million and is subject to approval by the Greenland government, with completion expected in October or November 2025.
Barnes agreed to waive a previous requirement for Critical Metals to commit $10 million in investment before qualifying for the increased stake. European Lithium will retain its 7.5% interest in Tanbreez, along with a 60% shareholding in Critical Metals, worth about $408 million at current market prices.
The Tanbreez project hosts one of the world’s largest untapped heavy rare earth element (HREE) deposits, with more than 27% HREE content and an estimated 4.7 billion tonnes of host rock. A preliminary economic assessment completed in March valued the project at a pre-tax NPV of $3.04 billion, with an internal rate of return of 180%.
Describing Tanbreez as “a game-changer” for Western rare earth supply chains, founder Gregory Barnes underscored the project’s strategic significance at a time when China dominates global supply, accounting for about 60% of production and 85% of processing.
The move also coincides with discussions between the UK, EU allies, and Greenland over a potential critical minerals partnership, with Greenland’s foreign minister signalling the island’s mineral wealth as central to future cooperation.
European Green Transition PLC (AIM: EGT) has extended the key license for its Olserum Rare Earth project in Sweden until 2029, strengthening its position for partnership and sale discussions. The company noted that the project demonstrated district-scale potential in 2024, underscoring its strategic importance as Europe seeks to reduce dependence on imported critical minerals.
EGT also confirmed a license extension at its Pajala copper project in Sweden until 2028, while the option agreement for the Altan Carbon credit project in northwest Donegal was extended by six months at no cost. The latter comes amid growing momentum in the carbon credit sector, bolstered by €3 million in peatland restoration funding from Meta, Microsoft, and Google.
CEO Jack Kelly highlighted the company’s transition away from being a pure mining player: “This is not a mining company. We have mining and exploration assets which we are looking to partner or sell, but our key focus is on acquiring distressed, revenue-focused businesses.”
The strategic shift is being led by Cathal Friel, EGT’s largest shareholder, who stepped in as executive chairman in June. Friel previously oversaw successful turnarounds at hVIVO and Amryt Pharma and is now guiding the company’s M&A strategy targeting revenue-stage businesses in the green economy.
EGT reported a strong cash position of €2.9 million as of June 30, with no debt and no committed costs, providing flexibility to pursue acquisitions.
On rare earths, Kelly stressed that Olserum remains a strategic asset: “There is no active rare earth mine in Europe today. Olserum could make a significant impact on European supply chains, especially as geopolitical tensions drive up prices and global players like Apple and the US government secure new long-term agreements in the sector.”
Laramide Resources Ltd. (TSX: LAM; ASX: LAM; OTCQX: LMRXF), a uranium development and exploration company with projects in the United States and Australia, has announced plans to drill approximately 15,000 metres at its Chu-Sarysu Project in Kazakhstan, one of the world’s most prolific uranium-producing regions.
Over the past year, the company compiled a comprehensive dataset from Kazakhstan’s National Geological Services, supplemented by local contractors. The data includes historical mapping, drilling, geophysical surveys (seismic, electromagnetic, magnetic and gravity), and geochemical results. The review confirmed that Chu-Sarysu is a target-rich environment prospective for uranium, copper, and rare earth elements.
In 2025, Laramide submitted exploration work plans to the Ministry of Industry and Construction and is finalising the remaining permits needed to proceed. Two local drilling contractors have been selected to carry out the Phase 1 program using multiple rigs, with depths ranging from 50 metres to as deep as 550 metres. The program will begin in Q4 and aims to demonstrate the extent of roll-front hosted uranium mineralisation beyond existing ISR operations, while also testing for copper and rare earths.
Kazakhstan currently accounts for nearly 40% of global U₃O₈ output, with the Chu-Sarysu and Syr Darya basins producing more than 75% of the country’s uranium. The Chu-Sarysu Basin also has significant copper potential, highlighted by the Dzhezkazgan deposit and ongoing exploration by global miners including Rio Tinto, Fortescue, First Quantum, and Ivanhoe.
Marc Henderson, Laramide’s President and CEO, described the project as “one of the great greenfield exploration opportunities globally,” noting the supportive investment climate in Kazakhstan. He emphasised that uranium remains the company’s primary focus, with ISR mining offering cost efficiency and environmental benefits, but highlighted the upside potential of copper and rare earths.
“This inaugural exploration program for Laramide in Kazakhstan is targeting high-grade, large-scale uranium deposits in a basin with existing infrastructure and producing operations,” Henderson said. “We look forward to delivering results that demonstrate the significant potential of this world-class district.”
Kazakhstan’s ambition to transform itself into a linchpin of the global critical minerals supply was in sharp focus at the British-Kazakh Society’s (BKS) latest webinar, “Critical Minerals – A Closer Look at Kazakhstan and the Resource Base.”
Hosted online on 16 September, the event brought together government representatives, leading analysts, and industry insiders to scrutinise the nation’s mineral endowment, discuss its strategy for long-term sustainability, and evaluate opportunities for international partnership and investment.
Geological Promise and Policy Drive
In his welcome address, Yerlan Zeineshev, Economic Counsellor at the Kazakhstan Embassy in the UK, underscored the nation’s geological riches—including rare earths, lithium, copper, uranium, titanium, and vanadium—and signalled Kazakhstan’s determination to become “a key supplier for global critical mineral needs.” The country already produces 17 of the 34 critical minerals on the UK’s essential list, with potential to expand further given the right investment and technology.
Mr Zeineshev highlighted March 2024’s UK-Kazakhstan critical minerals roadmap, emphasising mutual aims for research, private investment, and technology transfer. He pledged continued reform to ensure an open, investor-friendly environment—citing adoption of international best practice in mining codes, long-term investment agreements, and digitalisation of geological data.
Supply Chain Resilience and Global Partnerships
Speakers and panellists closely examined how Kazakhstan’s neutral geopolitical stance and its position on the Trans-Caspian International Transport Route position the country as a reliable partner for nations seeking to diversify supply chains. As Enzo Grazella, Senior Analyst at the Critical Minerals Association, noted, this offers both Europe and the UK an alternative source to mitigate risk and reduce overreliance on a handful of global producers.
The UK government’s updated critical minerals strategy and increased focus on supply chain security were cited as drivers for stepped-up bilateral engagement, particularly in mining, refining, recycling, and advanced manufacturing. Initiatives backed by UK export finance, the European Bank for Reconstruction and Development (EBRD), and local reforms are fostering a more attractive investment climate.
Resource Development and Value Addition
Arkhat Kurmanbekov, Deputy Director General of Kazakhstan’s National Center for Technology Foresight, outlined the scale of Kazakhstan’s geological survey initiatives, with record levels of exploration funding and ambitious targets to increase the area surveyed to over 2.2 million km² by 2026. The nation aims not only to expand extraction but also to move up the value chain through domestic processing, production of battery materials, heat-resistant alloys, semiconductor materials, and recycling technologies. Industry success stories—such as providing titanium to Boeing and Airbus, or pioneering full-cycle beryllium plants—underline local expertise.
Market Dynamics, Price Volatility, and Sustainability Challenges
Caroline Messecar, Strategic Markets Editor at Fastmarkets Metals and Mining, discussed acute market vulnerability arising from concentrated global production—particularly for rare earth magnets vital to electric vehicles and wind turbines. China commands up to 89% of global magnet supply, and recent export controls have forced international markets to scramble for alternative sources, underscoring the strategic importance of new suppliers like Kazakhstan.
The panel noted that establishing downstream industries (such as magnet manufacturing) requires more than raw materials: it needs multidisciplinary technical skills, transparent and sustainable production, and robust ESG standards. Both Kazakh and UK speakers reaffirmed their commitments to high environmental and social standards, clarifying that responsible development can coexist with commercial viability.
Whatch the webinar recoding Video provided for the MINEX Forum readers by the British-Kazakh Society
