INTERVIEW: Frontier Rare Earth CEO points to separation capacity as critical chokepoint

Rare earth refining and separation capacity remains a critical bottleneck for West-backed projects, despite robust government support and rising commercial interest, Frontier Rare Earth CEO James Kenny told Platts, part of S&P Global Energy, in a recent interview.

Frontier is advancing its flagship Zandkopsdrift project in South Africa's Northern Cape province. The project, comprising an open-pit mine and on-site processing plant, aims to convert rare earth and manganese minerals into high-purity chemicals for the rare earth magnet and lithium-ion battery supply chains. A definitive feasibility study is expected in the third quarter of 2027, with first production targeted for 2030.

Discussing global supply chain developments, Kenny said that while Western governments and investors increasingly support supply chain diversification, most projects still struggle to deliver the separated rare earth oxides required by industries such as EV, wind turbines, and electronics.

"For us, the commercial nexus with offtakers and value chain partners will drive financing, not geography," Kenny said.

He emphasized that many Western rare earth projects are not producing what the market actually needs. "Most companies are not producing separated rare earth oxides -- they're producing mixed rare earth carbonate, which has no industrial or commercial use," Kenny said.

This bottleneck persists despite new mining projects and policy momentum, leaving Western producers largely reliant on Chinese processors or a very small number of Western separators for the critical separation step. According to the International Energy Agency, China controls around 90% of global rare earth processing capacity, making separation technology essential for supply chain independence.

"There's a mismatch between market demand and what most companies produce," Kenny said. "Without separation technology, you're reliant on Chinese processors, which defeats the purpose of supply chain diversification."

Despite these challenges, Kenny believes Western industry is moving from aspiration to tangible supply, thanks to government support, technical partnerships, and growing commercial traction.

Carester partnership

Kenny described Frontier's recently announced partnership with Carester, the French rare earth processor and recycler, as "a game-changer." Announced in February, the agreement provides Frontier with access to Carester's advanced separation technology, enabling Frontier to produce neodymium-praseodymium (Nd-Pr) oxide on-site -- a key feedstock for high-strength permanent magnets used in EVs and renewable energy infrastructure.

This technical breakthrough positions Frontier among the few Western companies able to supply separated oxides directly to manufacturers, bypassing the need to ship mixed carbonates to China or compete for the small market opportunity in other Western separators, Kenny said.

Under the agreement, Frontier will also supply 100% of its mixed heavy rare earth carbonate (1,500 metric tons/year) to Carester for 10 years, while retaining all Nd-Pr oxide output (approximately 3,100 mt/year) for direct global sale.

Frontier's product mix also includes battery-grade manganese sulfate, with projected production of 100,000 mt/year. Kenny said this operation would be the lowest-cost worldwide and could cover up to 80% of the project's rare earth operating costs.

Kenny said this by-product further strengthens Frontier's competitive position and appeals directly to automakers seeking non-Chinese sources of manganese for lithium-manganese-rich battery chemistries, which are becoming increasingly adopted, for example, by Ford and General Motors.

"We will be the lowest cost producer in the world, including China, because we will produce battery-grade manganese sulfate as a by-product of our rare earth circuit," Kenny said.

Looking ahead, Kenny said the project is enjoying strong momentum, with solid government and community support in South Africa, government support from South Korea, which has been a shareholder with Frontier since 2012, and the classification of Zandkopsdrift as an EU strategic project under the Critical Raw Materials Act in 2025. As OEMs and governments push for greater supply chain transparency and independence, Kenny expects Frontier's integrated offering will continue to drive commercial traction and accelerate the availability of project finance.

"Since announcing the investment of $20 million into Frontier by the South African Government through the Industrial Development Corporation and our separation technology partnership with Carester, offtake discussions have definitely accelerated," he said, referencing ongoing talks with OEMs and other partners in South Korea, Japan, Europe, and North America. "The industry is not going backward -- OEMs are increasingly involved in securing supply, and Western supply chains are being built. The key is producing what the market needs: separated oxides, not just mixed rare earth carbonates," Kenny said.

Platts assessed the monthly Nd-Pr oxide at $120/kg CIF North America May 29, unchanged from April 30.