American Rare Earths Signed Partnership With Novex

The companies have partnered to build a U.S.-based supply chain for rare earth metals used in permanent magnets.

Updated on Sept. 28, 2026 in Manufacturing

Bold flat-color editorial illustration showing a monolithic metal ingot block on a stone pedestal, representing domestic mineral processing. — American Rare Earths and Novex have entered a partnership to build a domestic U.S. facility for processing rare earth metals into magnet precursors. AI Illustration. Upload story photo >

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Should the United States prioritize domestic sourcing for critical materials used in permanent magnets?

American Rare Earths has signed a memorandum of understanding with Novex to develop a metal production facility. This agreement focuses on converting rare earth oxides from the Halleck Creek project in Wyoming into magnet precursor metals.

Why it matters

The partnership aims to establish a fully domestic U.S. mine-to-magnet supply chain. By localizing processing, the companies seek to create a secure source for critical materials used in permanent magnets.

The agreement focuses on processing five specific rare earth elements, including NdPr, Tb, Dy, Sm, and Y. Novex has committed to improving current recovery and purity rates for these materials.

The players

American Rare Earths

An exploration and development company currently focused on its Halleck Creek project in Wyoming.

Novex

A company specializing in metal processing technology and the refinement of rare earth elements.

The details

Novex will receive oxides from the Halleck Creek demonstration plant to convert into magnet-grade metals. The two companies will collaborate on the design of a dedicated metal production facility to scale this process.

September 28, 2026: The memorandum of understanding was announced.

Market Landscape

This move represents a strategic effort to consolidate the domestic supply chain amid rising competition for critical materials. It positions the firms to capture market share by reducing dependence on foreign processing infrastructure.

The development of a domestic supply chain may eventually influence the price and availability of permanent magnets for U.S. manufacturers. For the average consumer, this project serves as a long-term investment in the security of the components used in modern electronics and clean energy.

The takeaway

Securing a domestic source for rare earth metals is essential for modern manufacturing independence. Companies that successfully integrate their own processing facilities can mitigate the risks associated with global supply chain volatility.