Rare earth elements (REEs) have emerged as some of the most strategically important resources of the 21st century. Comprising 17 elements—including neodymium, praseodymium, dysprosium, and terbium—REEs are essential to a broad range of advanced technologies, from electric vehicles and wind turbines to fighter jets and smartphones. With China currently controlling more than 80% of global supply, Western governments and industries are racing to secure and diversify these critical mineral supply chains.
At the forefront of North America's rare earths resurgence is MP Materials Corp. (MP), owner and operator of the Mountain Pass mine in California—the only fully integrated rare earth mining and processing facility on the continent. In July 2025, MP secured a landmark agreement with the U.S. Department of Defense, which included a US$400 million equity investment and a ten-year agreement establishing a price floor commitment for neodymium-praseodymium (NdPr) oxide. This support ensures financial stability and incentivizes domestic expansion. Just days later, Apple announced a US$500 million partnership to source U.S.-produced rare earth magnets from MP. The announcement coincided with a US$650 million public equity offering led by JPMorgan Securities and Goldman Sachs & Co., attracting strong institutional interest and pushing the company's valuation above US$10 billion.
Although Mountain Pass hosts a large light rare earth elements (LREEs) resource, it contains limited heavy rare earths (HREEs)—which are often considered even more strategically vital due to their rarity, specialized use in high-performance magnets, and highly concentrated global supply chain, primarily dominated by China. Elements like dysprosium, terbium, and yttrium are critical for magnets that must operate reliably under extreme heat or stress, as in electric vehicles, wind turbines, and defense systems. These HREEs are harder to source and more expensive to process, making their secure supply a top priority for Western governments.
Since 2020, the U.S. Department of Defense has been actively funding HREE initiatives, particularly those focused on developing separation and refining capabilities. However, the most significant bottleneck remains upstream: securing reliable, domestic sources of HREE feedstock. While there are promising deposits in Greenland and Africa, the most advanced and strategically aligned project is the Strange Lake deposit in northern Quebec, owned by Torngat Metals. Located in a politically stable and mining-friendly jurisdiction, Strange Lake is widely regarded as the top HREE development opportunity in North America. Backed by C$165 million in combined support from Export Development Canada and the Canada Infrastructure Bank, Strange Lake is poised to play a central role in reshaping North America's rare earth ecosystem.
New legislative efforts, such as Canada's Bill C-5, aimed at fast-tracking permitting for critical mineral projects, could further accelerate development timelines for projects like Strange Lake. Torngat also plans to construct a rare earths processing plant in Sept-Îles, Quebec, a major industrial hub offering hydroelectric power, deepwater port access, and a well-established rail network. The development of this HREE facility would mark a major milestone in establishing an integrated Canadian rare earth supply chain—and could serve as a springboard for regional exploration and development.
One junior explorer poised to benefit is NeoTerrex Minerals Inc. (TSXV: NTX). The company controls two rare earth projects in Quebec, including one adjacent to the Strange Lake deposit. Most notably, NeoTerrex Minerals' Galactic project—located just 40 kilometres from the proposed Torngat processing facility—has already yielded HREE discoveries. Following early exploration success in 2024, NeoTerrex significantly expanded its land package over an area with similar geological features to those hosting Strange Lake, pointing to strong potential for further discoveries.
As private capital, public funding, and geopolitical urgency converge, North America's rare earths sector is undergoing a generational shift. MP Materials is rapidly becoming the backbone of the U.S. supply chain, while Strange Lake is emerging as the continent's top HREE production candidate. These developments create powerful downstream opportunities for explorers like NeoTerrex Minerals, which is strategically positioned to capitalize on the rising demand for heavy rare earths. Together, these companies represent a coordinated industrial and exploration response to the global push for clean energy, supply chain security, and independence from China in critical materials.
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