Domestic Rare Earth Magnets
American Rare Earths and Novex Partner to Establish US Rare Earth Magnet Supply Chain
Key Points
Novex's metal production techniques have been developed under U.S. government-funded programs (DOE and DoW), underscoring its U.S.-based metallisation capabilities.
Halleck Creek holds a JORC-compliant mineral resource of about 2.63 billion tonnes, located entirely on Wyoming state land, with a non-binding U.S. Export-Import Bank letter of interest for up to US$456 million.
From 1 January 2027, U.S. defence contractors will be prohibited from using magnets containing rare earth elements mined, refined or separated in China, increasing urgency for domestic metallisation.
American Rare Earths is aiming to list on NASDAQ, and the MoU with Novex is non-binding apart from confidentiality and governing law provisions, with a 12-month window for a definitive agreement.
Novex is a U.S.-based advanced materials company specializing in critical elements and rare-earth metallurgy, collaborating with ARR to convert NdPr oxide into magnet precursor metal.
American Rare Earths (ARR) has signed a memorandum of understanding with Novex LLC to build a fully domestic US rare earth supply chain — from mine to magnet — using ore from Wyoming's Halleck Creek deposit, according to Financial Content and Yahoo Finance. The deal targets the conversion of neodymium-praseodymium (NdPr) oxide into the metal alloys used in permanent magnets, a critical step the US currently relies on China to perform.
The stakes are high. Starting January 1, 2027, US defence contractors will be banned from using magnets made with rare earths mined, refined, or separated in China, per Investor News. That deadline is pushing companies like ARR to move fast on domestic alternatives.
Halleck Creek: America's Biggest Known Rare Earth Deposit
Halleck Creek sits entirely on Wyoming state land and holds a JORC-compliant mineral resource of about 2.63 billion tonnes, making it the largest known US deposit of total contained rare earth oxides, according to Mining Weekly. ARR has already secured a non-binding letter of interest from the US Export-Import Bank for up to $456 million in potential funding.
ARR is also working toward a NASDAQ listing as it builds out what it calls a mine-to-magnet pipeline, per Yahoo Finance. The company's demonstration plant will produce NdPr oxide — the key ingredient Novex would then turn into metal. That metal feeds directly into permanent magnet manufacturing.
Molten Salt Electrolysis Chosen as Cleanest Conversion Method
ARR conducted a technology review to find the best way to convert rare earth oxide into metal. The winner: high-temperature molten salt electrolysis, which Financial Content describes as the cleanest available route. Two backup methods — fluoride conversion and lanthanothermic reduction — remain on the table as alternatives.
Novex brings real credentials to this process. Its metal production techniques were developed under programs funded by the US Department of Energy and the Department of Defense, according to Investor News. The company operates an advanced technology development centre focused on rare earth metallurgy.
What the MoU Actually Requires — and What Comes Next
The agreement is non-binding, except for confidentiality and governing law clauses, according to Mining Technology. ARR and Novex have roughly 12 months to turn the framework into a full, long-term contract. The MoU covers three things: process optimisation, metallisation of NdPr oxide from ARR's demo plant, and joint design of a US-based metal production facility.
Mining Weekly reports the broader goal is a complete domestic chain — from Halleck Creek feedstock through refining, separation, metallisation, and finally magnet applications — all inside the United States. No single step would depend on foreign processing.
China Dependence Drives Urgency for US Rare Earth Industry
The US currently has almost no domestic capacity to turn rare earth oxides into metals or magnets. China controls the vast majority of that processing globally. The 2027 defence procurement ban is designed to force a change, but building new facilities takes years, making partnerships like the ARR-Novex deal time-sensitive, per Financial Content.
ARR called the MoU a step toward addressing national security risks tied to rare earth dependence. Permanent magnets made from NdPr are essential in fighter jets, electric vehicles, and wind turbines. Without a domestic metal production step, even a US mine cannot deliver a truly independent supply chain, according to Investor News.
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