REE Refining for Magnets

Rare earth element (REE) refining and processing is the conversion of rare earth ores and concentrates into separated, high-purity oxides and metals used in permanent magnet manufacturing. For electric motors, the most critical outputs are neodymium–praseodymium (NdPr) oxides and heavy rare earths such as dysprosium and terbium, which enable high-power-density, high-temperature permanent magnets. As with batteries, refining — not mining — is the dominant bottleneck in the rare earth supply chain.

Why REE refining matters for electric motors

Permanent magnet motors rely on rare earth magnets to achieve high torque density, efficiency, and compact size. These performance attributes are not achievable at scale without refined rare earth materials that meet strict purity and consistency requirements.

• REE refining converts mixed ores into separated, magnet-grade rare earth oxides.
• Motor performance depends on precise elemental composition and impurity control.
• Refining and separation capacity is more geographically concentrated than mining.

Key rare earth elements for motor magnets

• Neodymium (Nd): primary light rare earth used in NdFeB magnets.
• Praseodymium (Pr): blended with neodymium (NdPr) to improve magnetic properties.
• Dysprosium (Dy): heavy rare earth used to maintain magnet strength at high temperature.
• Terbium (Tb): heavy rare earth used in smaller quantities for thermal stability.

From ore to magnet-grade materials

• Mining produces rare earth ore or concentrate containing mixed REEs.
• Cracking and leaching dissolve REEs into solution.
• Solvent extraction separates individual rare earth elements.
• Precipitation and calcination produce high-purity REE oxides.
• Oxides are converted to metals or alloys for magnet manufacturing.

Magnet-grade vs commodity-grade rare earths

Magnet-grade rare earths are analogous to battery-grade lithium or nickel. Headline purity alone is insufficient; motor magnet performance depends on impurity control, elemental ratios, and lot-to-lot consistency.

• Trace impurities reduce coercivity and magnetic stability.
• Heavy rare earth content is tightly controlled to balance performance and cost.
• Qualification is tied to magnet manufacturer and motor design.

NdFeB alloy: the bridge to magnet manufacturing

NdFeB (neodymium–iron–boron) is the composite alloy used to manufacture high-performance permanent magnets for electric motors. While rare earth refining produces neodymium, praseodymium, and heavy rare earth oxides, these materials must be converted into metallic form and alloyed with iron and boron before magnet fabrication can begin.

• NdFeB is not a rare earth material; it is a multi-element alloy whose dominant magnetic phase is Nd2Fe14B
• Neodymium and praseodymium provide magnetic strength
• Iron provides bulk magnetic moment
• Boron stabilizes the crystal lattice

Small additions of dysprosium or terbium are often introduced through grain-boundary diffusion rather than bulk alloying to preserve magnet strength at elevated operating temperatures while minimizing heavy rare earth usage.

NdFeB alloy production is a distinct industrial step that sits between rare earth separation and magnet manufacturing. Control of alloy composition, oxygen content, and microstructure directly determines final magnet coercivity, remanence, and thermal stability.

As a result, NdFeB alloy capacity represents a critical choke point in permanent magnet supply chains, independent of rare earth mining or magnet factory count.

REE refining and separation facilities

The table below lists representative rare earth refining and separation facilities supplying magnet-grade materials. Status reflects publicly disclosed operating or development position.

Texas REE & magnet supply chain

Texas is emerging as a downstream hub in the U.S. rare earth and permanent magnet supply chain. While the state does not host primary rare earth mining, it is becoming a focal point for magnet manufacturing and advanced refining activities that sit between upstream separation and motor OEMs.

• Permanent magnet manufacturing — NdFeB magnet production capacity is being established in Fort Worth, supplying electric motors for EV, industrial, and defense applications
• Heavy rare earth separation (planned) — proposed projects in Texas target dysprosium and terbium separation, which are critical for high-temperature NdFeB magnets
• Supply-chain integration — Texas links upstream rare earth separation (for example, Mountain Pass–derived NdPr) with downstream magnet fabrication and motor manufacturing

This positioning reflects a strategic shift toward domestic oxide-to-magnet capability rather than reliance on imported finished magnets. While portions of the Texas-based refining and separation footprint remain under development, the state already plays an active role in closing the gap between rare earth refining and end-use motor production.