In 2025, significant advancements in rare earth elements, magnets, and electric motors shaped global industries and geopolitics. The Mountain Pass mine in California resumed mass production of rare-earth oxides, particularly neodymium and praseodymium, marking a pivotal moment for U.S. independence from foreign sources. Historically, this mine produced up to 70 percent of the world’s rare earths until environmental issues led to its decline in the late 20th century. Today, the mine’s revival is critical as the U.S. and its allies grapple with reliance on China, which currently controls up to 99 percent of the global market for these essential materials.
The increased focus on domestic production stems from the critical role rare earths play in various technologies, including motors, semiconductors, and military systems. The U.S. Department of Defense, now referred to as the Department of War, invested heavily in the Mountain Pass operation, committing $400 million to secure a 15 percent stake in MP Materials and setting a price floor of US $110 per kilogram for certain rare earth oxides. This investment is roughly double the price charged by Chinese suppliers, emphasizing the strategic importance of U.S. production.
Global Race for Rare Earths
Throughout the year, the Trump administration sought to establish alternative supply chains for rare earths, aiming to reduce dependence on Chinese sources. Initial efforts included a controversial deal with Ukraine that raised eyebrows among experts due to the country’s ongoing conflict with Russia and the lack of viable processing technologies for its deposits. As discussions evolved, the administration shifted its strategy towards investing in allied nations, notably Australia, while largely overlooking Canada. Canada possesses significant reserves and operates one of the few rare-earth refineries outside Asia, presenting a vital opportunity for North American collaboration.
As the geopolitical landscape shifted, so did the focus on rare earths in technological innovation. Companies like MP Materials announced plans for domestic magnet production, highlighting a burgeoning industry that could reshape supply dynamics. In early 2025, MP Materials began trial production of neodymium-iron-boron magnets at a Texas facility, aiming to produce 2,000 to 3,000 tonnes annually. A pivotal agreement with Apple was also established, ensuring a supply of magnets for the tech giant’s devices by 2027.
Innovations in Electric Motors and Space Travel
The year also saw remarkable innovations in electric propulsion technologies. Researchers at Victoria University in Wellington, New Zealand, developed a new propulsion system using high-temperature superconducting tape. This technology significantly reduces the power needed to generate required magnetic fields, with a demonstration unit, known as Hēki, launched to the International Space Station in September 2025.
Additionally, the electric aviation sector is gaining momentum. Startup Hinetics, spun out of the University of Illinois Urbana-Champaign, is developing motors using high-temperature superconducting materials. These motors aim to achieve a specific power of 40 kW/kg, outperforming current commercial motors. Similarly, Airbus is pursuing a groundbreaking project to create a zero-emission passenger aircraft powered by hydrogen fuel cells, with its high-efficiency motor design leading the way.
Other notable advancements include Donut Lab’s innovative in-wheel hub motor, which promises to revolutionize electric vehicles by allowing precise torque control at individual wheels. Despite challenges related to unsprung weight, Donut Lab claims its latest model achieves a weight of just 40 kg with a power rating of 650 kW.
As discussions around resource management and international relations continue, Greenland emerged as a focal point due to its rare earth deposits. The Trump administration expressed interest in the region, but experts caution that industrial-scale mining in Greenland would face significant challenges.
The developments in 2025 highlight not only the technological advancements in rare earths and electric motors but also the intricate geopolitical dynamics that influence global supply chains and energy strategies. As nations vie for control over these essential materials, the landscape of technology and energy is set for significant transformation.
