“There isn’t yet an industrial-scale facility for heavy rare earth production outside China,” Motte said. The Louisiana facility could cover “a very large portion of Western demand today,” he added.
Establishing near-term separation capacity for heavy rare earths is a priority, Motte said, especially with “the truce between US and China [ending] in November.”
China export controls increase urgency for Western supply chains China possesses 60% of mining capacity globally and 90% of rare earths refining capacity, according to documents published by the US Congressional Research Service (CRS). Currently, China has export controls on samarium, terbium, gadolinium, scandium, yttrium and lutetium.
China and the US have a trade truce in place that suspends “heightened reciprocal tariffs,” which US President Donald Trump and Chinese President Xi Jinping agreed to November 4, 2025, but the agreement will expire November 10. Market participants are concerned the end of the truce could further disrupt supply availability for rare earths.
Supply of heavy rare earths outside China remains an unresolved challenge, Motte added, and EXIM’s support could help Aclara address that gap.
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