Rare earth elements (REE), essential for high-tech applications such as electric vehicles (EVs), wind turbines and electronics, have become a political pawn between the east and west.
China maintains a dominant position in global rare earth production and supply chains. Asserting its control, in late 2023 the country imposed bans on exporting key technologies for rare earth processing.
China later enforced stricter regulations on rare earth mining, smelting and trading, with measures including the classifying of rare earth resources as state-owned and implementing mandatory traceability systems for companies.
In response, the United States introduced tariffs on Chinese EVs and critical minerals, aiming to counter China’s dominance while fostering US domestic rare earth production.
The rivalry underscores the strategic importance of rare earths in powering green technologies and addressing national security concerns.
Accelerating demand
Rare earths, a group of 17 metallic elements including the lanthanides and yttrium, are relatively plentiful in the earth’s crust. But they are typically quite dispersed and not found in high enough concentrations to be economically viable to mine.
Classified as critical minerals, they are indispensable for clean energy technologies and advanced defence systems.
As such, global demand for rare earths is accelerating. The International Energy Agency’s Global Critical Minerals Outlook 2024 noted that demand for magnet REEs nearly doubled between 2015 and 2023, with projections to double again by 2050.
Australia, holding at least 4% of the world’s REE reserves, is well-placed to benefit from this demand surge, positioning itself as a key player in the evolving rare earths landscape.
Lindian Resources
Lindian Resources Ltd is developing the world-class Kangankunde Rare Earths Project in Malawi.
A July 2024 feasibility study outlined a low-risk and economically robust project.
The feasibility study, on the project’s Stage 1 development, delivered outstanding technical and economic results, including that Kangankunde has one of the lowest capital and operating cost structures of global rare earths projects.
It estimates pre-production capital costs of about US$40 million (A$60 million) including a 12.5% contingency.
The study also predicts a pay-back period of less than two years, a post-tax net present value of (NPV8) of US$555 million (A$831 million), which offers a post-tax NPV to capital expenditure (capex) ratio of more than 10:1, an internal rate of return (IRR) of 80% and an average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$84 million (A$124.5 million).
Since the completion of the feasibility study, the company has been advancing Kangankunde at pace, recently securing US$50 million in funding through a non-binding term sheet with Gerald Group — one of the world's largest independent and employee-owned metals trading houses.
Lindian continues to progress negotiations on the binding terms of the proposed financing and offtake arrangements with Gerald, in parallel with the completion of Gerald’s due diligence process.
LIN is also developing a more optimised processing flowsheet for the project via an extensive review, and expects to finalise the award of a design and contract for its process plant within the next few weeks.
American Rare Earths
American Rare Earths Ltd is developing its 100% owned magnet metals projects, La Paz in Arizona and Halleck Creek in Wyoming.
Both have potential to be among the largest, rare earths deposits in North America.
The company was recently granted a 'License to Explore by Dozing' by the State of Wyoming, which enables it to conduct test mining, trenching and exploratory excavation at the Cowboy State Mine Project area within Halleck Creek.
The test mining will allow the company to procure ore to be processed at a pilot processing facility — a critical step in proceeding with pilot plant testing, refining processing pathways and laying the groundwork for future project development.
Looking ahead to 2025, the company plans to update the JORC resource and complete a pre-feasibility study. Metallurgical testing will play a key role in advancing the project.
CEO Chris Gibbs described Halleck Creek as a rare earth deposit capable of meeting US needs for over a century, emphasising its strategic importance in the current economic climate.
He noted that the company continues to benefit from Wyoming’s strong support as it advances the largest rare earth project in the US.
Ionic Rare Earths
Ionic Rare Earths Ltd (ASX:IXR) is leading the secure supply of magnet rare earths, leveraging its sustainable technology, and pioneering magnet recycling to drive the next generation of wind turbines, electric vehicles, defence and advanced manufacturing.
Makuutu
IXR is a 60% owner of the Makuutu Rare Earths Project in Uganda — one of very few proven Ionic Adsorption Clay (IAC) deposits globally, with scale to move the needle on heavy rare earth oxide (REO) supply for the new economy. The project, which is set to become Uganda’s flagship mine, will be an environmentally and socially sustainable, low-cost development.
Ionic Technologies
IXR subsidiary Ionic Technologies has developed REE separation and refining technology and applied this to the recovery and separation of individual rare earths from spent permanent magnets.
The patented technology offers first mover capability for individual magnet rare earth recycling – separating 99.9% plus magnet rare earth oxides (REO) to enable the energy transition, electric vehicles, advanced manufacturing, and defence.
Refinery
Having identified a clear opportunity to provide mine-to-market magnet and heavy rare earth oxides (HREO), IXR is developing a standalone commercial-scale rare earth oxide (REO) manufacturing facility in Belfast, UK.
The Belfast demonstration plant is now in operation, where IconicRE continues to develop the intellectual property for the development of both magnet recycling and heavy rare earth separation and refining for its own standalone refinery.
The company is also working to leverage its proprietary magnet rare earth recycling technology already being demonstrated in Belfast, by building a sustainable, traceable and sovereign circular rare earth supply chain in Brazil, alongside JV partner Viridis Mining and Minerals Ltd.
This refinery will leverage Ionic Technologies IP to be an early mover and be a first step towards establishing a greater presence in the emerging Brazilian rare earth market.
Lanthanein Resources
Emerging rare earth elements and lithium explorer, Lanthanein Resources Ltd, is working to support a sustainable, electric future with a focus on the discovery of the critical minerals in the tier 1 mining jurisdictions of Western Australia and South Australia.
The company’s project portfolio features Lady Grey including Mt Holland and Yilgarn, the Gascoyne REE Project including Lyons and Edmund, the Koolya Kaolin Project, all of which are in Western Australia, plus the Murraydium REE Project in South Australia.
The Gascoyne Rare Earth Elements Project is prospective for ironstones and ferrocarbonatite-hosted REEs. Here, LNR is exploring for light rare-earth oxides of Neodymium (Nd2O3) and Praseodymium (Pr6O11) critical to the production of permanent magnets.
The Murraydium Project is prospective for clay-hosted REEs, with Australian Rare Earths Ltd having a REE resource on a neighbouring tenement at Koppamurra. Drilling by AR3 has confirmed clay-hosted REE mineralisation with results demonstrating the potential of additional high-grade rare earth ionic clays of global significance across wide portions of the project area.
LNR’s current primary focus is the Lady Grey Lithium-Tantalum Project, for which it has entered into farm-in agreement to earn up to 70% of the project. The company is now completing its drilling program,and will assess assay results and evaluate the project’s potential before deciding whether to advance to the next stage of the farm-in agreement.