Highlights

• The U.S. has rare earth deposits but faces complex challenges in mineralogy, economics, and processing infrastructure.
• Key projects like Mountain Pass and Energy Fuels are making incremental progress in rare earth production and separation.
• Achieving rare earth independence requires coordinated policy across mining, processing, magnet production, and R&D.

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America has rare earths in the ground, but the mineralogy largely dictates economics, environmental hurdles, and whether deposits move beyond the exploration stage. Claims that “none are viable” or “all are decades away” oversimplify a complex reality: some deposits are advancing, but the U.S. still lacks scale in midstream separation and downstream magnet production.

A recent entry by Michael Thomsen, CEO (opens in a new tab) of American Terbium Corp via LinkedIn raises some questions, including some challenges associated with existing U.S geology.  But does this represent insurmountable challenges?

According to the entry, there are four familiar hosts

Bastnäsite (Mountain Pass/carbonatites):

Rich in Nd-Pr, low in Dy-Tb. Mountain Pass (MP Materials) is producing LREE concentrate today, with plans for separation and magnet output by 2027–2028. The old adage still applies: “Carbonatites are Heavy in Lights but Light in Heavies.”

Allanite:

True that allanite is abundant but low-grade and metallurgically challenging. No commercial U.S. projects have reached production using allanite. However, there are niche, small-scale examples globally. To date, no major allanite-based U.S. project has advanced because of economics.

Monazite (HMS sands):

Correct on high REE grades and associated U/Th issues. But it is outdated to suggest the U.S. cannot handle monazite. Energy Fuels’ White Mesa Mill in Utah is already processing imported monazite sands into NdPr and piloting Dy/Tb separation. By 2026–2027, it could provide a modest but real HREE stream. The political toxicity is fading as radiological waste pathways are clarified.

Yttrofluorite (Round Top, Texas):

Leach chemistry is straightforward, but grades are very low (~0.05% TREO). The economics depend on large tonnage, coproduct credits (lithium, beryllium, gallium), and federal support. Interesting technically, but not a near-term heavy-REE fix.

Eudialyte:

Not present in U.S. deposits, which is arguably fortunate. Eudialyte has tripped up developers in Europe and Greenland due to silica-gel processing issues.

What’s Changed Since the “Decades Away” Narrative

• Mountain Pass is already producing and could deliver U.S.-made magnets within 3 years.
• Energy Fuels has proven monazite separation at a commercial scale.
• DOE and DoD funding ($1B+ DOE cost-shared programs, $400M DoD equity in MP) are accelerating midstream.
• Recycling partnerships (e.g., Apple-MP magnet recycling) are in motion for 2027+.

So while many legacy projects remain stalled, the blanket claim that none are viable is outdated. The bottleneck is scaling separation and downstream, not discovering new ore, suggests Rare Earth Exchanges (REEx).

Critical Questions for Investors

1. Heavy REE Supply: If Mountain Pass is “light-heavy” and monazite streams remain small, where will Dy/Tb come from at scale?
2. Processing Costs: Can low-grade projects (like Round Top) achieve competitive costs without permanent subsidies?
3. Radiological Permitting: Energy Fuels is breaking ground on monazite, but will state-level permitting and waste management keep pace with expansion?
4. Integration: Will U.S. projects secure downstream magnet buyers—or remain stuck at concentrate/separation?
5. Speculative Discoveries: “American Terbium Corp” and similar claims must be judged by public data. Without assays, flowsheets, and feasibility studies, they remain unverified.

Investor Takeaway

The U.S. does not lack rare earth deposits—it struggles with the host mineralogy mismatch: LREE-heavy bastnäsite, monazite tied up with radiological risk, allanite too lean, yttrofluorite too low-grade.

Progress is real but incremental: Mountain Pass and White Mesa are tangible steps, yet heavy rare earth independence remains elusive. Without a coordinated policy covering mining, processing, magnets, and R&D, America’s rare earth independence will stay more ambitious than executed.

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