8-K: Ramaco & Mulberry Partner for US Rare Earth Supply

Ramaco Resources and Mulberry Industries have signed a non-binding MOU to establish a domestic supply chain for rare earth elements and permanent magnets.

Summary

• Ramaco Resources and Mulberry Industries entered a non-binding Memorandum of Understanding (MOU) on December 23, 2025.
• The MOU aims for Ramaco to supply Mulberry with customized oxide blends containing rare earth elements like samarium, NdPr, yttrium, gallium, and Dy/Tb.
• Mulberry Industries will use this domestic feedstock to manufacture advanced permanent magnets at its Georgia facility for customers across the defense, aerospace, automotive, and robotics industries.
• This partnership is intended to strengthen the domestic rare earth and permanent magnet supply chain, reducing reliance on ex-China sources.
• Ramaco's Brook Mine in Wyoming, America's first new rare earth element and critical mineral mine in over 70 years, commenced mining earlier this year (2025) and is currently constructing a pilot plant.
• Mulberry Industries is a Georgia-based, vertically integrated manufacturer of high-performance permanent magnets (NdFeB, SmCo, AlNiCo) and is one of the only end-to-end producers of SmCo magnets in the West.
• Mulberry Industries reports its end-to-end production flow is 60% more streamlined than industry peers and incorporates a proprietary fifth-generation Grain Boundary Diffusion (GBD) technology that uses 30%-80% less heavy rare earths.

Sentiment

Score: 8

Explanation: The announcement of a non-binding MOU for a domestic rare earth supply chain is a significant positive development for both companies and U.S. strategic interests. It addresses critical supply chain vulnerabilities and leverages new domestic mining capabilities. The non-binding nature introduces a slight uncertainty, but the strategic intent is strong and the progress at Brook Mine is encouraging.

Positives

• Establishes a potential domestic supply chain for critical rare earth elements and permanent magnets, significantly reducing reliance on foreign sources, particularly China.
• Diversifies Mulberry Industries' rare earth sourcing, ensuring long-term supply chain freedom and enabling quick scaling for its customers.
• Leverages Ramaco's Brook Mine in Wyoming, which is America's first new rare earth element and critical mineral mine in over seventy years, positioning it as a key domestic supplier.
• Supports U.S. national and economic security by securing essential components for defense, aerospace, automotive, and robotics industries.
• Mulberry Industries' advanced manufacturing capabilities, including a 60% more streamlined production flow and GBD technology, enhance efficiency and reduce consumption of costly, supply-constrained heavy rare earths.
• Ramaco is positioned to deliver reliable, tailored feedstock as full-scale mining and pilot plant construction are underway at the Brook Mine.

Negatives

• The agreement is currently a non-binding Memorandum of Understanding, meaning a definitive, legally binding agreement is not yet in place and its finalization is subject to negotiation.

Risks

• Unexpected delays in current mine development activities at Ramaco's Brook Mine.
• Challenges in successfully increasing production at Ramaco's existing metallurgical coal complexes in accordance with growth initiatives.
• Potential failure of sales commitment counterparties to perform their obligations.
• Increased government regulation of coal in the United States or internationally.
• Impact of tariffs imposed by the United States and foreign governments on relevant materials or products.
• Further decline of demand for coal in export markets and underperformance of railroads affecting Ramaco's operations.
• Ramaco's ability to successfully develop the Brook Mine REE/CM project, including whether exploration targets and estimates for such mine are realized.
• Uncertainty regarding the timing of the initial production of rare earth concentrates from the Brook Mine.
• Difficulties in the development of a pilot and ultimately a full-scale commercial processing facility for rare earths.
• Mineral resources are not mineral reserves, and there is no certainty that any part of the estimated mineral resources at Brook Mine will be converted into mineral reserves in the future.
• Significant investments are required to build out Ramaco's rare earth capabilities, as it is a new initiative for the company.

Future Outlook

Ramaco Resources aims to deliver reliable feedstock tailored to Mulberry's advanced magnet manufacturing, with full-scale mining and pilot plant construction underway at the Brook Mine. The partnership seeks to build a durable, transparent, ex-China supply chain for permanent magnets for the decade ahead, helping U.S. innovators scale with confidence.

Management Comments

• "This Ramaco Resources partnership diversifies our rare earth sourcing so we can continue to scale quickly and ensure long-term supply chain freedom for our customers. By working with trusted partners like Ramaco Resources, we can establish a secure, ex-China supply chain for permanent magnets right here at home that strengthens America's economic and national security." Kevin Feng, CEO of Mulberry Industries.
• "Ramaco is proud to pursue a partnership with Mulberry Industries to supply domestically sourced rare earth oxide blends that underpin a resilient, ex China permanent magnet supply chain. With mining at the Brook Mine in Wyoming commencing earlier this year and construction of a pilot plant now underway, we will be positioned to deliver reliable feedstock tailored to Mulberry's advanced magnet manufacturing. Together, we seek to build a durable, transparent supply chain that helps U.S. innovators scale with confidence for the decade ahead." Randall Atkins, Chairman and CEO of Ramaco Resources.

Industry Context

This announcement signifies a crucial step towards strengthening the domestic U.S. rare earth and permanent magnet supply chain, a sector heavily dominated by China. It aligns with broader national security and economic initiatives to reduce reliance on foreign sources for critical minerals and advanced materials essential for defense, aerospace, and high-tech industries. The partnership between a raw material producer (Ramaco) and a vertically integrated manufacturer (Mulberry) exemplifies efforts to build end-to-end domestic capabilities, mirroring global trends towards supply chain resilience and localization.

Comparison to Industry Standards

• Mulberry Industries is noted as one of the only end-to-end producers in the West of SmCo magnets, which are essential for a variety of defense applications (e.g., F-35 fighter jet contains about 50 pounds of SmCo magnets).
• Mulberry Industries' end-to-end production flow is reported to be 60% more streamlined than industry peers, enhancing speed and efficiency.
• Mulberry's proprietary fifth-generation Grain Boundary Diffusion (GBD) technology uses 30%-80% less heavy rare earths, which are costly and supply-constrained, compared to conventional methods.
• Ramaco Resources' Brook Mine in Wyoming is highlighted as America's first new rare earth element and critical mineral mine in over seventy years, positioning it uniquely in the domestic supply landscape.
• The partnership aims to reduce U.S. reliance on China, which currently controls most rare earth mining and over 90% of refining, metallization, and magnet manufacturing.

Stakeholder Impact

• Shareholders (Ramaco & Mulberry): Potential for increased revenue streams, enhanced strategic positioning, and long-term growth from a critical minerals venture and secure supply chain.
• Customers (Mulberry): Assurance of a secure, diversified, and domestic supply of advanced permanent magnets, particularly for defense, aerospace, automotive, and robotics industries.
• U.S. Government/National Security: Strengthens domestic supply chain resilience for critical materials, reducing geopolitical risks associated with foreign reliance.
• Employees (Ramaco & Mulberry): Potential for job creation and stability in mining and advanced manufacturing sectors.

Next Steps

• Negotiate a definitive agreement between Ramaco Resources and Mulberry Industries based on the non-binding MOU.
• Continue full-scale mining operations at Ramaco's Brook Mine in Wyoming.
• Continue construction of the pilot processing facility at Ramaco's Brook Mine.
• Deliver reliable, customized rare earth oxide feedstock tailored to Mulberry's advanced magnet manufacturing needs.

Key Dates

Recommendation

The non-binding MOU between Ramaco Resources and Mulberry Industries represents a highly strategic and potentially transformative development. Ramaco's Brook Mine is positioned as a critical domestic source of rare earth elements, a sector vital for national security and advanced industries. Partnering with Mulberry, a leading domestic manufacturer of permanent magnets, creates a vertically integrated supply chain that significantly de-risks future operations for both companies and the broader U.S. economy. While the MOU is non-binding, the clear strategic alignment, the commencement of mining, and the construction of a pilot plant at Brook Mine indicate strong commitment. This move addresses a critical vulnerability in the U.S. supply chain, offering substantial long-term growth potential and a competitive advantage in a geopolitically sensitive market. The long-term implications for revenue diversification and market positioning for Ramaco are very positive, making it a strong buy for investors focused on critical minerals and national security plays.

Keywords

Rare Earth Elements, Permanent Magnets, Supply Chain, Critical Minerals, Domestic Sourcing, Ramaco Resources, Mulberry Industries, Brook Mine, NdPr, Samarium, Yttrium, Gallium, Dy/Tb, Metallurgical Coal, Mining, Defense Industry, Aerospace, Automotive, Robotics, MOU