Titanium pigment maker Tronox and Japan's JX Advanced Metals will each put about $16 million into studies for rare earth processing plants in Australia and the US. The plants would target up to 10,000 tonnes a year of rare earth oxides.
At a glance
- Tronox and JX Advanced Metals will each fund about $16 million of a roughly $32 million programme.
- The money covers a feasibility study for an Australian cracking and leaching plant, a study for a US oxide refinery, and a US pilot plant.
- If the studies work out, the partners plan to explore a joint venture to build and run the plants.
Background
Rare earths are mined as a mixed concentrate that must be "cracked" and leached to dissolve the metals, then separated and refined into individual oxides such as neodymium and dysprosium. China dominates this processing step. Tronox, best known for titanium dioxide pigment, already mines mineral sands that contain rare earths.
What happened
Tronox has signed a cooperation and investment agreement with JX Advanced Metals Corporation to develop rare earth and critical minerals projects in Australia and the United States. Each company will fund about 50% of a planned investment of roughly $32 million.
The funding covers a feasibility study for a rare earth cracking and leaching facility in Australia and a study for a rare earth oxide refinery in the US. It also pays for a US pilot plant to produce first quantities of high-purity oxides. The plants would target up to 10,000 tonnes a year of total rare earth oxides.
Where the plants would go
The Australian plant is planned for the Rockingham Industrial Zone in Western Australia, about 3 kilometres from Tronox's Kwinana titanium dioxide plant. The US refinery would sit on company-owned land next to Tronox's facility in Hamilton, Mississippi.
Tronox's mineral resources contain neodymium, praseodymium, dysprosium, terbium, samarium, gadolinium and yttrium. The partners will also look at niobium, scandium, zirconium and hafnium.
What it means
The deal is a study commitment, not yet a decision to build. If the engineering studies confirm the plants are technically and commercially viable, the partners plan to explore a joint venture to fund, build and run them.
Both companies have held talks with government-backed lenders, including the US Export-Import Bank, Export Finance Australia and Japanese financial institutions. That points to the role state finance is playing in building rare earth processing outside China.
Our read
Outlook: neutral. The agreement funds studies only, so it adds no rare earth supply for years. It strengthens the pipeline of processing capacity outside China.
What to watch
- Results of the Australian and US feasibility studies.
- Any financing from the US Export-Import Bank, Export Finance Australia or Japanese lenders.
- A decision on forming a joint venture to build the plants.
For information only, not investment advice.
Neodymium price in India
metalscost.com India reference price as of 2026-10-03.
Detailed analysis
Timeline
- 2026-09-29: Tronox and JX Advanced Metals sign a $32 million rare earth cooperation and investment agreement.
Supply Drivers
The planned plants target up to 10,000 tonnes a year of rare earth oxides outside China.
Government Policies
The partners have engaged US, Australian and Japanese state-backed lenders on financing.
What could lift prices
- Western buyers want processing outside China, which supports demand for oxides from new plants.
- State-backed lenders are willing to finance rare earth projects.
What could weigh on prices
- The plants are at study stage and may not be built.
- New processing capacity outside China could add supply later this decade.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Australia | Medium | A rare earth cracking and leaching plant is planned for Western Australia. |
| United States | Medium | A rare earth oxide refinery and pilot plant are planned in Mississippi. |
| Japan | Low | JX Advanced Metals gains a share in non-Chinese rare earth supply. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | A new partnership adds to rare earth processing plans outside China. |
Who gains, who loses
- Western magnet makers: More oxide supply outside China would reduce their reliance on Chinese processing.
- Chinese rare earth processors: Their dominance faces more competition if the plants are built.
Other ways this could play out
- If studies confirm viability, a joint venture could move to build the plants with state-backed finance.
- If costs prove too high, the project could stall at study stage.
Price risks
- Rare earth prices depend heavily on Chinese export policy.
- Processing plants outside China often face cost and technical hurdles.
Technical view
Price is trading above both its 20-period and 50-period moving averages, a bullish alignment.
Computed from metalscost.com's own stored price history.
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