How to Invest in Rare Earths in Australia

Where are rare earths found in Australia?

Australia is one of the world's top producers of rare earths, accounting for 22,000 tonnes of the world's 2020 total of 280,000 tonnes in 2021. The year before, the country had produced 21,000 tonnes.

Australia is behind the king of rare earths, China (168,000 tonnes); the US, which has long sought to lock down its own rare earths supply (43,000 tonnes); and Myanmar (26,000 tonnes).

Australia's relationship with the US and key allied partners is a major component of its attraction as a rare earths mining jurisdiction. Rare earths are vital in the production of high-tech defense materials — something the US excels in and wishes to safeguard. Rare earths are also important in the production of electric vehicles, navigation equipment, computers, chips, mobile phones and more.

Australia and the US signed a critical minerals agreement in 2019. Rare earths are a focus of the deal, which binds the two countries together at a high level and paves the way for the geological research departments of the two countries (and Canada) to cooperate in exploration and research, and attempt to reduce the sector's vulnerabilities to trade disruption.

Public companies in Australia list on the Australian Securities Exchange (ASX). The Sydney-based stock exchange has 2,035 companies listed, of which nearly half play in the basic material and energy sectors.

It's easy to invest on the ASX, which has done investors' homework with an explanation on how to get started on its website. But the first step for those who want to jump in is to get set up with a stockbroker (which the ASX has also provided a useful tool for).

The outlook for Australian rare earths production is bright — while Lynas remains the top producer in the country, with a mine in Western Australia and a processing facility in Malaysia, there are multiple "shovel-ready" projects around the country, according to top government sources.