In 2025, significant developments in the realm of rare earth elements, magnets, and electric motors reshaped global supply chains and highlighted geopolitical tensions. Notably, the resumption of industrial production at the Mountain Pass mine in California’s Mojave Desert marked a pivotal moment in the ongoing struggle for control over critical resources. Once the source of up to 70 percent of the world’s rare earths, the mine had fallen into decline in the late 20th century as Chinese producers dominated the market, controlling between 85 and 99 percent of global supply.
The resurgence of the Mountain Pass mine, which began producing neodymium and praseodymium oxides again in 2025, signals a renewed interest in domestic rare earth production. This development is crucial as these elements are essential for technologies ranging from electric motors to military systems, including aircraft and night-vision devices. The United States and its allies, heavily reliant on Chinese supplies, face significant national security concerns.
Geopolitical Maneuvers and Domestic Strategies
Throughout 2025, the Trump administration actively sought to diversify rare earth supply chains, moving away from dependence on China. Initial efforts, including high-profile discussions with Ukraine regarding its rare-earth deposits, raised eyebrows among experts due to Ukraine’s ongoing conflict and the lack of viable processing technology for its ores. Subsequent strategies mirrored those of the Biden administration, focusing on boosting domestic production and collaborating with allies like Australia.
While Canada has large reserves of rare earth elements and operates one of only four significant refining plants outside Asia, it has remained largely overlooked by U.S. policy makers. The Toronto-based company Neo Performance Materials operates a critical facility in Sillamäe, Estonia, contributing to the global supply chain.
In July 2025, news emerged that the U.S. Department of Defense was investing $400 million in MP Materials, securing a 15 percent stake and establishing a price floor of US $110 per kilogram for certain rare earth oxides. This price is approximately double that of Chinese competitors, indicating a significant investment in domestic resources.
Innovations in Magnet and Motor Technology
2025 also witnessed a surge in advancements related to magnet manufacturing and electric propulsion systems. Early in the year, MP Materials announced the beginning of production for neodymium-iron-boron magnets in Texas, with plans to scale output to between 2,000 and 3,000 tonnes annually. A groundbreaking agreement with Apple, worth $500 million, set the stage for supplying magnets integral to the tech giant’s devices by 2027.
In the realm of electric propulsion, research teams at Victoria University in Wellington, New Zealand, tested innovative magnetoplasmadynamic thrusters, utilizing superconducting materials to significantly reduce energy needs for space travel. The Hēki technology demonstration launched to the International Space Station in September 2025 successfully showcased the potential for more efficient propulsion systems for future space missions.
Additionally, startups like Hinetics are focusing on high-temperature superconducting motors for electric aircraft. Funded by the Advanced Research Projects Agency–Energy, Hinetics aims for a specific power of 40 kW/kg, a figure that could revolutionize passenger aviation.
Airbus continues to explore ambitious projects, including the development of a zero-emission passenger airliner powered by hydrogen fuel cells. The company’s ZEROe initiative aims to incorporate superconducting motors, setting itself apart from competitors like Boeing. In March 2025, Airbus CEO Guillaume Faury reiterated the company’s commitment to this groundbreaking project, although he cautioned that substantial market entry would likely not occur until the 2040s.
In the electric vehicle sector, innovations have also emerged. Donut Lab’s latest motor design for in-wheel hub applications claims a weight of just 40 kg while achieving a power rating of 650 kW. This advancement addresses the longstanding challenges of unsprung weight in electric vehicles, potentially transforming electric vehicle performance.
As the year progressed, discussions surrounding Greenland’s mineral wealth intensified, particularly in relation to its rare earth deposits. The Trump administration’s interest in Greenland, linked to its critical minerals, raised questions about the feasibility of large-scale mining in the region. Experts caution that significant challenges remain, necessitating careful consideration of environmental impacts and local governance.
In summary, 2025 was a year of pivotal advancements in the fields of rare earths, magnets, and electric motors. As nations grapple with resource dependencies and the need for innovative technologies, the developments at the Mountain Pass mine and beyond signal both challenges and opportunities for the future.
