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World Rare Earths Outlook 2025
Rare Earths Market Update: H1 2024 in Review
The rare earths market was punctuated by significant fluctuations during the first half of 2024.
Global supply continued to struggle to meet rising demand, particularly outside of China. Early stage projects in countries like the US, Korea and India are showing promise, but have so far been insufficient to close the growing supply gap.
Conversely, while rare earths demand across key end-use segments — electric vehicles (EVs) and renewable energy technologies — started the year strong, some demand eroded during Q2, which was reflected in lower prices.
Geopolitical tensions also intensified toward the end of the quarter, and are likely to impact the market through H2.
China driving global rare earths supply with rising quotas
Global rare earths supply has been increasing annually since 2020, when total production topped 240,000 metric tons (MT). In 2023, global mine supply grew to 350,000 MT, with the majority of this fresh supply coming out of China.
In 2020, the Asian nation produced 140,000 MT of rare earths, with output ballooning to 240,000 MT in 2023.
“China’s Ministry of Industry and Information Technology raised 2023 quotas for rare-earth mining and separation to 240,000 tons and 230,000 tons of REO equivalent, respectively,” as per the US Geological Survey. “In 2023, mine production quotas were allocated to 220,850 tons of light rare earths and 19,150 tons of ion-adsorption clays.”
China accounts for 68.57 percent of all mined supply, and is likely to add to that number this year.
In February, the country issued its first round of 2024 quotas.
“A rare earth mining quota of 135,000 tonnes and a smelting and separation quota of 127,000 tonnes were unveiled for the first round of 2024, up by 12.50 percent from 120,000 and 10.43 percent from 115,000 tonnes respectively from 2023’s first round quotas,” a Fastmarkets report published that month states.
The quotas were targeted at China’s two major rare earths companies. “China North Rare Earth Corp has been allocated a mining quota for light rare earth of 94,580 tonnes and a smelting quota of 88,010 tonnes, China Rare Earth Group received a total mining quota of 40,420 tonnes including 30,280 tonnes for light rare earth, and 10,140 for ion-absorbed rare earth (medium and heavy rare earth), and a total smelting quota of 38,990 tonnes,” Fastmarkets explains.
In terms of top-producing mines, China’s Bayan Obo mines in Inner Mongolia make up the majority of market supply, followed by Mount Weld in Australia and Mountain Pass in the US.
According to the International Energy Agency (IEA), since 2015, Myanmar's share of global rare earths production has surged from 0.2 percent to 14 percent, and the US has increased its share from 1 percent to 9 percent.
Looking ahead to 2030, China is expected to remain the top producer of magnet rare earths, while Australia's share of global production is projected to rise to 18 percent, and the US is anticipated to maintain a 7 percent share.
As noted in the IEA’s Global Critical Minerals Outlook, the primary issue for the rare earths sector is supply concentration.
“The major concern for magnet rare earths is not a huge gap between demand and supply like in the case of copper or lithium, but rather an extremely important level of geographical concentration of today’s as well as future mining and refining projects that expose this market significantly to supply disruptions,” it reads.
Geopolitical tensions impacting rare earths supply and trade policies
Such rare earths supply disruptions could come from China implementing export bans similar to those issued in 2019, when the US and China engaged in a tit-for-tat trade war.
Limited rare earths exports from China were also the catalyst behind Australia-listed Lynas (ASX:LYC,OTC Pink:LYSCF), which was born when China limited rare earths exports to Japan in the early 2000s.
Now Lynas controls 15 percent of the rare earths market and is planning on expanding its presence in the space.
Currently Lynas operates the Mount Weld rare earths mine in Western Australia, and is a major global producer of neodymium-praseodymium (NdPr) oxide, a key material for neodymium iron boron (NdFeB) magnets.
In late June, Lynas announced plans to begin producing separated heavy rare earths products at its Kuantan refinery in Malaysia, with commissioning and ramp-up expected by mid-2025. The facility will have an estimated annual throughput of 1,500 MT of a mixed heavy rare earths compound, which includes samarium, europium, gadolinium and holmium. Initial estimates for dysprosium and terbium production capacity haven't been provided.
“This circuit reconfiguration at Lynas Malaysia provides a pathway to accelerate our commitment to processing all of the elements in the Mt Weld ore body,” said Amanda Lacaze, CEO and managing director of Lynas.
In an effort to increase domestic supply, the US government has announced plans to implement a 25 percent tariff on rare earth magnet imports from China. “The tariff rate on natural graphite and permanent magnets will increase from zero to 25 percent in 2026. The tariff rate for certain other critical minerals will increase from zero to 25 percent in 2024,” as per a May statement from the White House. “Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk.”
The announcement was welcome news to MP Materials (NYSE:MP), which owns and operates Mountain Pass in California, “America’s only scaled and operational rare earth mine and separations facility.”
Jim Litinsky, chief executive of MP Materials, told Fastmarkets in mid-May that the new tariffs will "help to level the playing field for domestic producers," giving the US market time to scale and develop.
Prior to the Biden administration's decision, MP Materials was awarded US$58.5 million by the US Department of Energy “to advance its construction of America’s first fully-integrated rare earth magnet manufacturing facility.”
Similarly, E-Vac, the US subsidiary of German magnet manufacturer VAC Group, was given US$111.9 million in US tax credits to advance the construction of its first US rare earth magnet manufacturing facility in Sumter, South Carolina.
The funding will facilitate the construction of a sintered NdFeB rare earth magnet plant in an American city. It is expected to be operational by late fall 2025.
The project, which began in March, is supported by the US Qualifying Advanced Energy Project Tax Credit (48C) under the Inflation Reduction Act). In its first phase, this initiative allocated US$10 billion in funding, with US$800 million in tax credits, to select projects focused on critical materials recycling, processing and refining.
Rare earths prices hurting as demand slumps
Along with oversupply, 2024 has brought weaker rare earths demand in key end-use segments, like the EV sector, due to lower consumer buying. In turn, that has caused prices to trend lower.
In an April article, Caroline Messecar, Fastmarkets' strategic markets editor for technology metals, points to several factors that she thinks have helped push rare earths prices down close to 70 percent in two years.
She identifies weak EV demand, a global economic downturn, previous volatility and geopolitics as culprits.
Looking ahead, the rare earths market outside of China could face supply disruptions as the Asian nation announced new regulations to protect rare earths supply for national security in early July.
These rules, covering the mining, smelting and trade of these crucial materials, emphasize that rare earth resources belong to the state. The government will oversee the development of China's rare earths industry, where the country has become the leading producer, accounting for nearly 90 percent of global refined output.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Rare Earths Market Forecast: Top Trends for Rare Earths in 2025
Rare earths prices saw some gains in May 2024, fueled by positive sentiment over consumer demand in China.
While both dysprosium (Dy) and neodymium-praseodymium (NdPr) oxides benefited from this positivity, Benchmark Mineral Intelligence notes that Dy oxides registered the largest gain, moving 10 percent high month-on-month.
NdPr oxide, which is a larger market compared to Dy, was up a more moderate 0.6 percent.
However, the increases were not to last, and prices soon reverted to a downtrend.
“This was the first-time rare earths prices had recovered after a continuous decline (in 2023), but after a brief recovery, prices are now falling again,” Benchmark pricing and data analyst George Ingall said in a report that month.
Muted demand has weighed on prices, but year-on-year increases in mine supply have also capped price growth.
Global rare earths output has rapidly risen from 240,000 metric tons in 2020 to 350,000 metric tons in 2023, according to US Geological Survey data. The lion’s share of rare earths production continues to be dominated by China, a factor that remains relevant for the industry as the Asian nation continues to flex its control.
East vs. west divide still key for rare earths
Rare earths, which are essential in various high-tech applications, including electric vehicles (EVs), wind turbines and electronics, have become a political pawn between the east and west.
Currently, China and the US are locked in a geopolitical struggle over rare earths, with tensions mounting.
In late 2023, China imposed bans on exporting technologies for rare earths processing, tightening its grip on the global supply chain. By mid-2024, reports were circulating that the country's State Council would introduce stricter regulations on domestic rare earths mining, smelting and trading, effective October 1, 2024. The rules would declare rare earth resources state-owned and require companies to maintain detailed records in a traceability system.
The US responded with tariffs on Chinese EVs and critical minerals, aiming to counter China's dominance while bolstering domestic production. These measures underscore escalating tensions, with both nations prioritizing strategic control over rare earths amid growing demand for green technologies and national security needs.
While each nation grapples for supply chain security, Jon Hykawy, president and director at Stormcrow Capital, told the Investing News Network (INN) that a more diplomatic approach is needed.
“There is a potential fork in the path regarding critical materials, more broadly, and rare earths, in particular, when it comes to overall trade strategy between western nations and China,” he said via email.
“By my calculations, if we maintain an integrated trade structure, then, together, we will probably be able to provide sufficient quantities of both NdPr and DyTb (dysprosium-terbium) to achieve our goals in both the automotive and clean energy sectors; NdPr is easy, DyTb is harder, but it can be done.”
However, if western nations decide they want to exclude China, they will face shortfalls.
“If we decide to go our own way in the west, then we can likely deliver enough NdPr to do what we need to do. (But) we are unlikely to make enough DyTb to enable the intended use of all that NdPr," he noted.
Hykawy also took aim at governments not recognizing the increasing importance of DyTb.
“At present, there is some noise and support for ‘rare earths,’ but no one in government seems to understand that the critical materials out of the lanthanide elements is shifting from NdPr to DyTb. Without that realization, the steps that are being taken are not mitigating the correct risks,” he said.
Ex-China rare earths supply in the works
To combat China’s hold on the rare earths sector, the US is heavily investing in the space.
In April 2024, the US Department of Energy earmarked US$17.5 million for four rare earths and critical minerals and materials processing technologies using coal and coal by-products as feedstocks.
“The US has looked to support the development of a domestic rare earth supply chain by financing upstream development of rare earth mining from primary and secondary sources, along with recycling of rare earth-containing products," David Merriman, research director at Project Blue, explained to INN.
“In addition, the US government has provided financing for rare earth processing facilities under development by existing rare earth producers to be located in the US, along with NdFeB (neodymium-iron-boron) magnet production facilities.”
To bolster domestic magnet production against Chinese competition, the US government plans to impose a 25 percent tariff on NdFeB magnet imports from China starting in 2026.
However, since most NdFeB magnets are already embedded in components imported by US manufacturers, the tariff is expected to affect only a small fraction of the country's overall NdFeB magnet consumption, Merriman said.
As the US looks to build out a domestic rare earths supply chain, China has sought to fortify its own.
“China has also taken action to reduce supply chain risk for rare earths, both at the sourcing of feedstocks and the downstream finished product stage,” he said. “China via state-owned companies has invested in several foreign rare earth operations to diversify the origin of rare earth feedstocks, particularly for heavy rare earth-rich feeds.”
As Merriman pointed out, the diversification has been propelled by sourcing issues in 2024.
“The risk of China’s current feedstock sources has been highlighted in 2024 with disruption to feedstock supplies from Myanmar, which accounted for >40 percent of global mine supply of Dy and Tb,” he said.
In October, rare earths supply was interrupted when Myanmar’s Kachin Independence Army seized Panwa, a key rare earths mining hub, following the earlier capture of Chipwe.
The two towns in Kachin state, near China’s Yunnan province, are critical suppliers of rare earth oxides to China.
“Chinese imports of raw materials from Myanmar were 40,000 tonnes during the first nine months of 2024. If that production drops out, there will be a big impact on (heavy) rare earth prices,” Thomas Kruemmer, founder of the Rare Earths Observer, told Fastmarkets.
Rare earths project pipeline facing fragility
Depressed prices through 2023 have weighed on explorers and developers as new projects are financially unviable.
“There are several projects which are at advanced stages of development, though few are able to compete on a cost basis with fully integrated and state-owned operators in China,” said Merriman.
“Financing, metallurgical test work and the development of a sizable terminal market outside of China for semi-refined rare earth products are all barriers to the development of several rare earth projects.”
Weak markets are often fertile ground for M&A and other deals, and 2024 saw some notable examples.
In June, Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands project.
Since the agreement was penned, development activities at Donald have progressed, including work related to process plant engineering, auxiliary infrastructure, contract tendering and permitting and approvals.
In September, Defense Metals (TSXV:DEFN,OTCQB:DFMTF) signed a memorandum of understanding with the Saskatchewan Research Council (SRC) to support the development of a domestic rare earths supply chain.
Defense Metals and the SRC will explore collaborations on rare earths processing and supply, including using the SRC’s proprietary separation technology for Defense Metals’ products. They aim to negotiate a long-term supply agreement as Defense Metals advances its Wicheeda rare earths project in BC, Canada.
As the year drew to a close, Ucore Rare Metals (TSXV:UCU,OTCQX:UURAF) received a US$1.8 million payment from the US Department of Defense on December 13. The funding will support Ucore’s subsidiary, Innovation Metals, in demonstrating its RapidSX rare earths separation technology at a commercial demonstration facility in Kingston, Ontario.
What factors will affect rare earths in 2025?
In 2025, Merriman sees China’s continued rare earths dominance as a key driver for the sector.
“China maintains a strong influence over rare earth pricing, with most international prices for rare earth trades being based in some way upon Chinese domestic pricing. China has long sought price stability for key rare earths, allowing downstream value-add industries to benefit from reliable and often lower feedstock prices," he said.
“Maintained lower pricing in 2025 will likely help support demand growth for key earth products within the Chinese market, though the concentration of supply originating from China continues to make rest-of-world consumers nervous over becoming reliant on rare earth materials," Merriman also told INN.
For Hykawy, precarious supply outside of China and weak prices will be a focal point in 2025.
"Obviously, we’ve seen significant price drops for Nd, for example," he said.
"That helps the auto sector, but only by the slightest amount. Let’s say there is 2 kilograms of magnet in a main motor in an EV, and I’m likely overestimating. Only 27 percent of that is neodymium metal. The impact of the price change on 500 grams of rare earth is not moving the needle on an EV’s cost," Hykawy added.
He also expressed concern about the supply chain for heavy rare earths. “The bigger, long-term impact I am thinking about is, as Dy and Tb production becomes a bottleneck, how does the industry adjust to a world where the projects that can produce enough Dy and Tb are also making Nd and Pr as a by-product?” Hykawy said.
"To meet the growing demand for heavy rare earths, do the major NdPr producers, like Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF), MP Materials (NYSE:MP) and the Bayan Obo mine, drop their NdPr output to maintain reasonable prices, or do they keep going and flood the market and drop their own prices to unsustainable levels?" he questioned.
“For some time, NdPr have been the materials in demand. Soon, they might be valuable but overproduced commodities, with everyone scrambling to get the right amount of DyTb for their automotive or wind application.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Aclara Resources and Energy Fuels are clients of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Rare Earths Stocks: 9 Biggest Companies
Rare earth elements (REEs) are crucial for technologies like smartphone cameras and defense systems.
A select few from the group of 17 are also vital to the expanding electric vehicle (EV) industry — neodymium and praseodymium are found in the permanent magnet synchronous motors used in EV drive trains.
China's dominance in rare earths production and reserves has prompted countries like the US, Canada and Australia to boost their own mining and processing efforts to secure their supply chains. The pressure on these nations to establish strong supply chains is likely to grow when a US tariff on imports of Chinese rare earth magnets begins in 2026.
The 25 percent tariff, announced by the US government in May, aims to both protect American industries from China's trade practices and support domestic production of rare earths. One form of magnet that the tariffs will affect is sintered neodymium-iron-boron (NdFeB) magnets, crucial for EV motors and wind turbines.
This marks the first time rare earth magnets are included in Section 301 tariffs, signaling a significant move in the US-China trade conflict. The initiative is part of broader efforts to bolster US energy and national security.
Meanwhile, the EU is also seeking to reduce its reliance on Chinese rare earths through a new law enacted in May, which aims to significantly boost domestic production of critical minerals, including rare earths, by 2030.
In early July, China's State Council introduced regulations to tighten control over the country's rare earth resources. Taking effect on October 1, these new rules impose strict oversight on REE mining, smelting and trading. They also ban the export of technology for extracting and separating rare earths, and for making rare earth magnets.
These recent escalations could be a boon to rare earth minerals and rare earth magnet stocks operating in the space outside of China. To help paint a better picture of the REE landscape, the Investing News Network has compiled a list of the biggest rare earths stocks by market cap on US, Canadian and Australian stock exchanges.
Data was gathered on October 2, 2024, using TradingView’s stock screener.
US rare earths stocks
To circumvent Chinese tariffs, the US is striving to secure stable domestic supply of REEs outside China.
The US has vast rare earths reserves and is the second largest global REE producer thanks to its sole operating mine, Mountain Pass. However, it currently lacks sufficient processing facilities.
American rare earths companies are working to address this imbalance, presenting investment opportunities for those looking to capitalize on the market's growth potential. Learn more about MP Materials, Energy Fuels and NioCorp Developments, the three largest US rare earths stocks by market cap, below.
Company Profile
Market cap: US$2.9 billion
Share price: US$17.54
MP Materials, the largest producer of rare earths outside China, focuses on high-purity separated neodymium and praseodymium (NdPr) oxide, heavy rare earths concentrate, lanthanum and cerium oxides and carbonates.
The company went public in mid-2020 after acquiring the Mountain Pass mine in California, the only operational US-based rare earths mine and processing facility. In Q3 2023, MP Materials began producing separated NdPr, marking a significant milestone. The company plans to increase rare earth oxide production by 50 percent within four years.
In April, MP Materials was awarded US$58.5 million to support construction of the first fully integrated rare earth magnet manufacturing facility in the US. This funding, part of the Section 48C Advanced Energy Project tax credit, was granted by the Internal Revenue Service and US Department of the Treasury after the evaluation of around 250 projects based on their technical and commercial viability, as well as their environmental and community impact.
Located in Fort Worth, Texas, the facility will produce the NdFeB magnets crucial for EVs, wind turbines and defense systems. The company is targeting commercial production by late 2025. MP Materials will source raw materials from its Mountain Pass mine, creating an end-to-end supply chain with integrated recycling.
During the second quarter of 2024, MP reported that its NdPr production more than doubled quarter-on-quarter to 272 metric tons (MT). The company expects that output will increase a further 50 percent in the third quarter.
Press ReleasesCompany Profile
Market cap: US$914.91 million
Share price: US$5.59
Energy Fuels is a leading US uranium and rare earths company that operates key uranium production centers, including the White Mesa mill in Utah and the Nichols Ranch and Alta Mesa projects in Wyoming and Texas.
The company finished construction of Phase 1 REE separation infrastructure at White Mesa in early 2024, and in June reported successful commercial production of separated NdPr that meets the specifications required for REE-based alloy manufacturing. The company believes it is the first US company in decades to achieve commercial-scale, on-spec rare earths separation from monazite. The Phase 1 REE separation circuit is now operating at full capacity.
Energy Fuels anticipates commercial production of 850 to 1,000 MT of NdPr per year, making it one of the largest producers outside of China. Additionally, the mill will produce a heavy REE concentrate for pilot-scale tests to potentially develop commercial dysprosium and terbium separation facilities in the future.
Energy Fuels has also made moves to secure monazite sand to process at White Mesa. In 2023, the company acquired the Bahia project in Brazil to potentially supply 3,000 to 10,000 MT of REE-bearing monazite sand annually.
In early June, Energy Fuels executed a joint venture with Astron (ASX:ATR) for Astron's Donald rare earths and mineral sands project in Victoria, Australia. Energy Fuels now has the option to earn a 49 percent stake.
After garnering shareholder approval, the joint venture was finalized in late September. Donald is expected to begin production as early as 2026; it will supply the White Mesa mill with 7,000 to 8,000 MT of monazite sand in rare earths concentrate annually in Phase 1, with plans to expand output in subsequent phases.
Energy Fuels announced plans to acquire Australian mineral sands company Base Resources (ASX:BSE) in September. Commenting on the deal and the new assets, CEO Mark Chalmers highlighted their potential.
"The Toliara, Bahia and Donald projects are expected to become large-scale, world-class, and low-cost heavy mineral sand projects in the coming years, producing titanium, zirconium and rare earth minerals,” he said.
Press ReleasesCompany Profile
Market cap: US$77.32 million
Share price: US$2
NioCorp Developments is advancing its Elk Creek project in Nebraska, which features North America's highest-grade niobium deposit under development, with significant scandium production capacity. An updated 2022 feasibility study highlights an extended mine life, improved ore grades and enhanced economics for niobium, scandium and titanium.
Recent metallurgical testing has demonstrated the asset's ability to produce high-purity magnetic rare earth oxides at a recovery rate of 92 percent or higher. These results will inform an updated feasibility study for Elk Creek — expected in 2024, it will incorporate REEs into the project’s mineral reserves.
In April, the company delisted from the TSX due to significantly lower trading volumes than its NASDAQ listing.
A day later, NioCorp announced plans to explore the feasibility of integrating the recycling of permanent rare earth magnets into its proposed Elk Creek critical minerals project in Southeast Nebraska. An assessment will be undertaken to better understand the technical and commercial viability of recycling post-consumer NdFeB magnets back into separated rare earth oxides, which could then be utilized in the production of new NdFeB magnets.
The initial phase of this investigation will involve bench-scale testing, with potential progression to demonstration-scale testing based on results. This initiative is independent of the Elk Cree feasibility study update.
In May, the company shared the results of a scoping study focused on using a Railveyor system to electrify the Elk Creek mine. The study found this could cut costs, shorten the timeline to full commercial production and lower the mine's carbon footprint. The system would deliver ore to processing facilities using a narrow-gauge light rail system.
In its preliminary financial results for the fiscal year ended on June 30, NioCorp reported a net loss of US$11.4 million, or US$0.30 per share. The results for the period marked a year-on-year improvement compared to the previous fiscal year’s loss of US$40.08 million, or US$1.34 per share.
Canadian rare earths stocks
As part of Canada's Critical Minerals Strategy, the government has allocated C$3.8 billion in federal funding for opportunities across the critical minerals value chain, from exploration to recycling.
REEs are among the minerals listed as critical.
Additionally, the government has designated C$7.5 million to support the establishment of a rare earths processing facility in Saskatoon, Saskatchewan. In mid-September, the Saskatchewan Research Council (SRC) announced that the facility reached commercial-scale production, making it the first in North America to achieve this milestone.
Currently, the facility produces 10 MT of NdPr metals per month. The SRC plans to increase monthly production to 40 MT by December, with an annual goal of 400 MT by early 2025.
Learn about Aclara Resources, Ucore Rare Metals and Mkango Resources, the three largest Canada-listed rare earths stocks by market cap, below.
Press ReleasesCompany Profile
Market cap: C$83.2 million
Share price: C$0.49
Aclara Resources is advancing its Penco Module project in Chile, characterized by ionic clays abundant in heavy rare earths. Its objective is to generate rare earths concentrate via an environmentally friendly extraction process. This approach aims to eliminate the need for a tailings facility, minimize water use and ensure the absence of radioactivity in the final product.
Additionally, the company discovered its Carina Module project in 2023. In December of that year, it disclosed an initial inferred resource for the project, saying it encompasses approximately 168 million MT grading 1,510 parts per million total rare earth oxides and 477 parts per million desorbable rare earth oxides.
Aclara successfully concluded a semi-industrial pilot plant program for Penco Module in September 2023, yielding 107 kilograms of wet high-purity heavy rare earths concentrate from 120 MT of ionic clays.
Full-scale production at Penco Module is slated to commence in the second quarter of 2027.
On March 1, Aclara received its second patent for a process to extract heavy rare earths from ionic clays in an environmentally friendly manner. The patent, granted in Chile and valid for 20 years, focuses on the circular mineral harvesting process and establishes a fully enclosed flowsheet. The company submitted a new environmental impact assessment for Penco Module in June that features an improved design addressing environmental and social concerns.
Aclara and Vacuumschmelze, also known as VAC, penned a memorandum of understanding in early July to jointly pursue a "mine-to-magnets" solution for ESG-compliant permanent magnets. The non-binding agreement aims to meet rising demand for EVs and clean technologies, addressing the limited and Asia-centric supply of rare earth minerals. The partnership seeks to develop a resilient, ESG-focused supply chain for these critical components.
Aclara said in August that the environmental impact assessment for Penco Module was moving to the next stage.
Later in the month, Aclara signed a memorandum of understanding with the State of Goiás and Nova Roma to expedite the Carina Module project, emphasizing its importance for local development and Brazil's critical minerals supply. This was followed by the release of an updated preliminary economic assessment for Carina Module featuring initial capital costs of US$593 million and sustaining capital costs of US$86 million.
Company Profile
Market cap: C$37.11 million
Share price: C$0.60
Ucore Rare Metals is focused on the exploration and separation of rare earths in Canada and the US. The company owns the Bokan-Dotson Ridge rare earths project in Alaska and is developing a strategic metals complex for processing heavy and light rare earths in Louisiana. Ucore acquired an 80,800 square foot brownfields facility in Alexandria, Louisiana, for developing its first commercial REE processing facility in January.
In Canada, Ucore's Ontario-based RapidSX demonstration plant, operated by Kingston Process Metallurgy, was commissioned to evaluate the techno-economic advantages, scalability and commercial viability of the RapidSX technology platform for separating and producing REEs like praseodymium, neodymium, terbium and dysprosium. This initiative was supported by a US$4 million award from the US Department of Defense, granted to Ucore's subsidiary, Innovation Metals.
In late April, Ucore reported that it tested a mixed rare earths carbonate from Defense Metals' (TSXV:DEFN,OTCQB:DFMTF) Wicheeda project and confirmed it was suitable for commercial-scale processing at Ucore's planned facilities. According to the release, "(Wicheeda) is a source of material that can become a fundamental economic and technical component to Ucore’s plan of developing multiple SMC’s across North America."
On July 9, Ucore announced the execution of a non-binding memorandum of understanding with Cyclic Materials that aims to to qualify Cyclic's recycled rare earth oxide product in Ucore's process. This will start with the use of initial trial quantities from Cyclic to support Ucore's rare earths demonstration program at its RapidSX facility. The agreement positions Cyclic Materials as a potential long-term source for Ucore's planned facilities in the US and Canada.
In mid-August, Ucore and Meteoric Resources (ASX:MEI,OTC Pink:METOF) signed a memorandum of understanding for Meteoric to supply 3,000 MT of total rare earth oxides from its Caldeira project in Brazil to Ucore's Louisiana strategic metals complex. A similar deal was established with Australia’s ABx Group (ASX:ABX) in early September. It will see ABx supply Ucore with mixed rare earth carbonates from its ionic adsorption clay rare earths resource in Northern Tasmania.
Press ReleasesCompany Profile
Market cap: C$31.69 million
Share price: C$0.12
Mkango Resources is positioning itself to be a leader in the production of recycled rare earth magnets, alloys and oxides via its 79.4 percent stake in Maginito with partner CoTec Holdings (TSXV:CTH,OTCQB:CTHCF).
Its mineral assets include the Songwe Hill rare earths project in Malawi, which is targeting neodymium, praseodymium, dysprosium and terbium, and its Pulawy rare earths separation project in Poland.
The company also holds a diverse exploration portfolio in Malawi.
At the end of July, Mkango's wholly owned subsidiaries and the government of Malawi signed a mining development agreement for the Songwe rare earths project confirming the fiscal terms for its development, including a 10 percent interest to Malawi's government and exemption from custom and excise duties imports and exports.
Maginito owns HyProMag, a firm focusing on rare earth magnet recycling. HyProMag is the licensee of the Hydrogen Processing of Magnet Scrap (HPMS) process, which demagnetizes and liberates rare earth magnets from scrap.
A pilot plant using a long-loop recycling process underpinned by the HPMS process was commissioned in July, and commercial operations are anticipated to start in Q1 2025. Additionally, Maginito is expanding HyProMag’s recycling technology to the US through the joint venture HyProMag USA, with a feasibility study underway.
In early June, HyProMag entered a non-binding memorandum of understanding with Envipro Holdings, a Japanese recycling and materials trader, to develop rare earth magnet recycling initiatives in Japan and the UK, including marketing and potentially developing of its HyProMag technology in Japan, as well as scrap recycling trials in both countries.
In an August update for investors, Mkango reported that HyProMag will receive 350,125 euros to develop its eco-friendly NeoLeach technology, which will further upgrade metals recovered with HPMS. The funding is part of the 8 million euro GREENE project from the European Commission’s Horizon Europe Programme, which aims to improve the resource efficiency and performance of rare earth permanent magnets.
In early October, Mkango and HyProMag secured 218,932 pounds in government grants for recycling strategies under the Innovate UK initiative to advance its recycling routes.
Australian rare earths stocks
Australia ranks among the globe's top rare earths producers and possesses the fifth largest reserves of these minerals. The nation is notable for hosting the largest supplier of rare earths outside of China.
Learn more about Lynas Rare Earths, Iluka Resources and Arafura Resources, the three largest ASX-listed rare earths stocks focused stocks by market cap.
Company Profile
Market cap: AU$7.37 billion
Share price: AU$7.80
Well-known ASX-listed rare earths stock Lynas Rare Earths is the leading separated rare earths producer outside of China, with operations in Australia, Malaysia and the US. In Western Australia, Lynas operates the Mount Weld mine and concentrator and is ramping up processing at its Kalgoorlie rare earths processing facility.
In mid-2023, Lynas received AU$20 million from the Australian government's Modern Manufacturing Initiative. This funding supports the Apatite leach circuit project at Lynas’ Kalgoorlie facility.
The company marked a pivotal moment in December 2023, when the Kalgoorlie facility achieved its first production milestone, signaling the transition from commissioning to full-scale operations. Additionally, Lynas is establishing a light rare earths processing facility and a heavy rare earths separation facility in Texas, US.
The company processes mined material at its separation facility in Malaysia. In the March quarter, Lynas reported strong production rates, including 1,724 MT of NdPr, following successful ramp-up efforts in Malaysia. Despite a challenging market with low NdPr prices averaging US$47 per kilogram, quarterly sales revenue reached AU$101.2 million.
In late June, Lynas announced plans to begin production of separated dysprosium and terbium products at its Malaysian operations in the 2025 calendar year. In August, the firm reported a 92 percent increase in mineral resources and a 63 percent rise in ore reserves at the Mount Weld site. According to the company, mineral resources have expanded from 55.4 million MT to 106.6 million MT at a grade of 4.12 percent total rare earth oxides; meanwhile, ore reserves have grown from 19.7 million MT to 32 million MT at a grade of 6.44 percent total rare earth oxides.
The new estimates include significant increases in contained heavy rare earths and support a mine life of over 20 years at expanded production rates. Additionally, stored tailings were added to the ore reserves as the operations have the ability to reprocess them to recover additional rare earth minerals.
In its 2024 fiscal year results, Lynas reported a AU$226 million decline in net profit after tax. CEO Amanda Lacaze attributed the decrease to a challenging market, lower production tallies and upgrading downtime.
Company Profile
Market cap: AU$2.91 billion
Share price: AU$6.82
Iluka Resources is advancing its Eneabba rare earths refinery in Western Australia with backing from the Australian government, which aims to bolster the country’s footprint in the global rare earths market by tapping into its abundant reserves. The company also owns zircon operations in Australia, including Jacinth-Ambrosia, the world's largest zircon mine.
Iluka secured an AU$1.25 billion non-recourse loan for Eneabba under the AU$2 billion Critical Minerals Facility administered by Export Finance Australia. This funding will support the development of a fully integrated refinery capable of producing both light and heavy separated rare earth oxides. The facility will process material from Iluka’s own feedstocks and third-party suppliers, with initial production expected to commence by 2025.
Additionally, Iluka is progressing its Wimmera project in Victoria, focusing on mining and beneficiation of fine-grained heavy mineral sands in the Murray Basin. This project aims to supply zircon and rare earths over the long term. A definitive feasibility study for Wimmera is scheduled for completion by the end of 2025.
In the company’s Q2 results, Iluka noted that activities at Eneabba included the "progression of major engineering packages, conclusion of camp accommodation works and preparation for commencing the next phase of site works."
On August 21, Iluka released its half-year results, which included a AU$106 million revenue decrease year-on-year. It pointed to global macroeconomics, operational and market discipline and capital investments for the reduction.
Company Profile
Market cap: AU$418.93 million
Share price: AU$0.17
Arafura Resources, an Australian rare earths firm, has secured government funding to advance its Nolans rare earths project in the Northern Territory. Arafura is currently working toward a final investment decision for Nolans, which is shovel ready.
Nolans is envisioned as a vertically integrated operation with on-site processing facilities.
A 2022 mine report updates Nolans' expected lifespan to 38 years, targeting an annual production capacity of 4,440 MT of NdPr concentrate. The project's definitive feasibility study highlights significant concentrations of neodymium and praseodymium, alongside all other rare earths in varying quantities.
Arafura has inked binding offtake agreements with Hyundai Motors (KRX:005380), Kia (KRX:000270) and Siemens Gamesa Renewable Energy. Additionally, the company has a non-binding memorandum of understanding with General Electric Company's (NASDAQ:GE) GE Renewable Energy to collaborate on establishing sustainable rare earths supply chains.
In its update for the June quarter, Arafura said it had secured conditional approval for over US$1 billion in debt funding for the Nolans project. With safety preparations underway, Arafura is nearing a final investment decision.
In late August, Arafura signed a memorandum of understanding with Canada’s SRC to process rare earths from Arafura’s Nolans project into dysprosium and terbium oxides at SRC’s facility in Saskatchewan. The collaboration aims to support global supply chain diversification for energy transition technologies.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Aclara Resources and Energy Fuels are clients of the Investing News Network. This article is not paid-for content.
Table 1 – Mineral Resource Estimate at Halleck Creek (1000ppm TREO cut off)
Table 1: Eclipse’s Grønnedal Classified Mineral Resource(LREO: Light Rare Earth Oxides, HREO: Heavy Rare Earth Oxides, MREO: Magnet Rare Earth Oxides)
Figure 1: Geology of the Grønnedal Carbonatite Complex
