China's 90% Rare Earth Refining Monopoly Threatens NioCorp's Elk Creek Supply
NioCorp Developments Ltd. is cited among firms reliant on rare earth processing as China controls roughly 90% of global refining capacity. U.S. defense rules banning Chinese-origin materials by January 2027 threaten supply for NioCorp's Elk Creek critical mineral project unless domestic processing scales up.
1. Impact of China's Rare Earth Monopoly on NioCorp
China's long-term strategy has built control of roughly 90% of global rare earth refining, covering mining, separation and metal-making stages. NioCorp's Elk Creek project, slated to produce critical oxides like neodymium and praseodymium, faces supply risks under updated DFARS rules effective January 1, 2027, which bar Chinese-origin materials at all processing stages. Without scaled domestic refining capacity, NioCorp must secure alternative non-Chinese sources or partner with U.S. processors to meet defense contract requirements.