American Rare Earths (ARR) has entered into a memorandum of understanding (MoU) with Novex, a US-based company, for rare earth oxides (REOs).
The agreement establishes a framework for converting REOs produced at the Halleck Creek Project in Wyoming into metals used in permanent magnets.
The MoU was signed through ARR’s fully owned subsidiary, Wyoming Rare (USA).
Under the terms of the MoU, Novex will receive neodymium-praseodymium oxide from ARR’s demonstration plant for conversion into rare earth metal.
Both companies intend to work together on process optimisation and develop the design for a domestic rare earth metal production facility.
The collaboration aims to create a US-based mine-to-magnet supply chain.
The conversion of REOs to metal is considered a bottleneck in the magnet manufacturing process, with most supply currently controlled by China.
In April 2025, China introduced export licensing requirements for samarium, gadolinium, terbium, dysprosium and yttrium, which are used in high-temperature and defence-grade magnets.
From January 2027, US defence contractors will be prohibited from using magnets containing rare earth elements mined, refined or separated in China, increasing the focus on developing domestic metal production capabilities.
The agreement follows ARR’s review of various metallisation technologies including fluoride conversion with calciothermic, lanthanothermic reduction and high-temperature molten salt electrolysis.
The review identified molten salt electrolysis as the most suitable primary candidate for development, while lanthanothermic reduction will be kept in reserve for certain metals.
Novex has previously developed similar oxide-to-metal processes and operates a technology centre in Bellingham, Washington.
Both parties plan to finalise the commercial structure and terms of a long-term supply and collaboration agreement within 12 months.
The Halleck Creek Project has an estimated mineral resource of 2.63 billion tonnes.
The site is located entirely on state land, and has received federal and state support including a non-binding letter of interest for up to $456m in potential funding from the US Export-Import Bank.
ARR CEO Mark Wall said: “This MoU is a critical step in advancing our stated intention of building the only fully US domestic vertically integrated mine-to-magnet supply chain.
“Our technology review demonstrated that molten salt electrolysis is the cleanest path from oxide to metal, and Novex has been developing that capability in the US for years while working with various areas of the US Government and leading consulting companies.”
