U.S.-Sourced Rare Earths to Skip China in Supply Deal With Japan

(Bloomberg) — America’s only rare-earths producer agreed a deal to ship output from its new processing plant to Japan, part of a broader move by the U.S. and allies to reduce China’s role in their critical supply chains.

MP Materials Corp., owner of the Mountain Pass mine in California, will sell material from its separation unit directly to trading giant Sumitomo Corp. for distribution in Japan. The mine’s output has typically gone to China for processing, with Japanese companies purchasing from there.