Forging Independence: A New Alliance Aims to Break America's Rare Earth Chains

DENVER, CO – August 17, 2026

A pivotal agreement announced today marks a significant step in America’s high-stakes race to build a secure domestic supply of critical minerals. American Rare Earths (ARR) has signed a Memorandum of Understanding with Novex, LLC, a specialist in rare earth metallurgy, to bridge a glaring gap in the U.S. industrial base: the conversion of rare earth oxides into the high-purity metals required for permanent magnets.

This partnership is more than a standard corporate tie-up; it is a direct response to a strategic vulnerability that has vexed U.S. policymakers and defense planners for years. By pairing the vast mineral wealth of ARR’s Halleck Creek project in Wyoming with Novex’s federally-backed technical expertise, the collaboration aims to establish a capability that is almost entirely monopolized by China, creating a potential cornerstone for a fully American “mine-to-magnet” supply chain.

The Geopolitical Crucible: Why Metal Matters

For decades, the conversation around rare earths has been dominated by China's control over the global supply. This dominance is most acute not in mining, but in the complex, multi-stage processing that follows. The most critical bottleneck, or “chokepoint,” is the conversion of separated oxides into metals and alloys. Magnet manufacturers, the primary consumers of these elements for everything from F-35 fighter jets to electric vehicle motors, cannot simply use the refined oxide powder; they need metal.

Beijing has not been shy about leveraging this dominance. In April 2025, it imposed export licensing on key heavy rare earths like terbium and dysprosium, essential for defense-grade, high-temperature magnets. This move sent a clear signal to the world about the fragility of relying on a single source.

Washington’s response has been to transform policy preference into hard-coded procurement law. A mandate from the Department of Defense, set to take effect on January 1, 2027, will bar defense contractors from using magnets containing rare earths mined, refined, or separated in China. This was reinforced by Executive Order 14415 in July 2026, which further tightened waiver provisions. Suddenly, a secure, non-Chinese source of rare earth metal is not just a strategic goal but a commercial necessity. As one industry analyst recently noted, “press releases are not supply chains. Until we can mine, separate, refine and manufacture qualified products at commercial scale, Beijing will retain the ability to decide who receives critical minerals.” The ARR-Novex pact is a direct attempt to build that qualified, commercial-scale capability on U.S. soil.

Wyoming's Ace: The Scale of the Halleck Creek Deposit

The foundation of this ambitious plan is geological. The Halleck Creek Project is the largest known rare earth deposit in the United States, with a JORC-compliant resource of 2.63 billion tonnes. This colossal scale provides the potential for a multi-generational supply, anchoring the entire proposed value chain. Sited entirely on Wyoming State land, the project also benefits from a potentially streamlined permitting pathway in a mining-friendly jurisdiction and has already attracted a non-binding letter of interest for up to US$456 million in funding from the U.S. Export-Import Bank.

However, the project is not without its challenges. While vast, the deposit's ore grades are considered low by global standards. Furthermore, the project is still at an early stage, with a definitive feasibility study yet to be completed. An updated scoping study from February 2025 outlined a base case requiring US$456 million in capital—a significant sum for a company of ARR’s size. The success of the venture will depend not only on technical execution but on securing substantial, long-term financing in a capital-intensive industry.

A Cleaner Path Forward: The Promise of Molten Salt

Addressing the processing challenge, ARR’s internal review identified high-temperature molten salt electrolysis as its preferred technology for metallization. This method stands out for its environmental advantages, reducing dependence on hazardous anhydrous hydrogen fluoride used in more traditional calciothermic reduction processes. It represents a move toward a cleaner, more sustainable production path.

This is where Novex enters the picture. The Bellingham, Washington-based firm is not a newcomer; it has spent years developing oxide-to-metal technologies, with its work supported by grants from the U.S. Department of Energy and Department of War. “Novex has spent years developing one of the most technically challenging and strategically important capabilities in the rare-earth supply chain,” said Ilija Mišković, CEO of Novex, underscoring the deep expertise his company brings to the table.

Under the MoU, Novex will take neodymium-praseodymium (NdPr) oxide from ARR’s demonstration plant and convert it into metal suitable for magnet production. This initial work will serve as a proof-of-concept and a foundation for the joint design of a full-scale metal production facility to be built by American Rare Earths.

Building the Chain: From Wyoming Dirt to Defense-Grade Magnets

The agreement lays out a clear, multi-faceted collaboration. The partners will work to optimize recovery and purity for a suite of magnet metals—NdPr, terbium, dysprosium, samarium, and yttrium—from Halleck Creek ore. The ultimate goal is a fully integrated U.S. supply chain, from the Cowboy State Mine through a domestic metal production facility and onto magnet manufacturers.

For American Rare Earths, this move is the logical and necessary next step. “This MoU is a critical step in advancing our stated intention of building the only fully U.S. domestic vertically integrated mine-to-magnet supply chain,” said ARR CEO Mark Wall. “Putting our massive Wyoming resource alongside their technical capability is an important step in developing the cornerstone of U.S. domestic rare earth and magnet production.”

The parties aim to finalize a definitive long-term agreement within twelve months. While the MoU is non-binding, it establishes a formal framework and a shared ambition. For a nation seeking to rebuild its industrial commons and secure its technological future, this alliance represents a tangible move from strategic aspiration to industrial action. The path from a Wyoming mountainside to a finished high-performance magnet is long and complex, but a critical link in that chain may have just been forged.