Rare earths power the technology that every country wants, things like electric motors, wind turbines, smartphones and missiles. However, China controls most of the world’s processing, about 90%, which is why the West is scrambling to build alternatives.
Rare earths are a group of 17 elements used to make powerful magnets, bright screens, and precise electronics, which is the stuff that makes EV motors spin, fighter jets fly, and wind turbines turn.
Australia’s sitting on world-class deposits, and after the 2025 White House deal between Trump and Albanese, the viability of projects in Australia became a lot more present. It’s not only Australia though that has rare earths, Brazil, Malawi and even parts of the USA itself have rich deposits.
Rare earths have become the most strategic commodity in the world over the past couple years, and expect this narrative to remain for quite some time yet.
The Latest Rare Earths ASX News
Investing in Rare Earths on the ASX
Why Rare Earths Matter
They’re in everything that makes modern life work. Rare earths create the permanent magnets in EVs and wind turbines, they make phone screens bright and missile guidance systems accurate. No rare earths means no energy transition and a lot of broken defence equipment.
Currently a US$13 billion a year market and growing fast, the importance of this group of metals cannot be underestimated.
Where the Market's Moving
The market for rare earths is growing, and fast, the average estimate is around 8-9% compounded annual growth rate out to 2033. Which is faster than nearly all other commodities.
China refines about 90% of the world’s rare earths, but the US and Australia are trying hard to change that with new processing plants and supply chains. It’s not just about finding more rare earths deposits – it’s about who can turn ore into the separated oxides that industry actually uses.
At the moment US and Australia lack the expertise to process large amounts of rare earths, but this is a changing dynamic that is seeing both governments throw billions of dollars in upskilling our workforces to ensure surety of processing and supply. The demand is picking up, so the necessity for the US and Australia to develop these
How Rare Earths Are Priced
It can be tricky, but each element trades separately. Neodymium, dysprosium, praseodymium – different markets, different prices. Most deals happen through contracts, not exchanges. However the price is still determined by demand vs supply metrics for each metal.
When China tightens exports (as they often do, look at Antimony in 2025) or EV demand spikes, prices move fast. The market for rare earths is volatile and slightly opaque, making it a difficult commodity to predict future pricing.
What to Watch
The most important thing to watch is the export controls from China, one Chinese government announcement can change the market instantly.
Follow the projects moving into pilot production and those backed by US or Australian funding, the bigger the backer, the more likely the project will proceed. Arafura Rare Earths (ASX: ARU) has the backing of mining billionaire Gina Rinehart, and with that the project is likely to continue to progress into production.
Mining and processing capacity is the bottleneck in Australia, hence why we are seeing our government prop up projects like the Eneabba rare earth refinery in Western Australia. The explorers that can get through to production will likely feed these new government backed plants, a huge benefit to any explorer..
How to Research Rare Earth Stocks on the ASX
Look for explorers and developers moving beyond the drill phase, building processing capacity or locking in offtakes with Western buyers.
Experience in metallurgy is needed, these are often complex deposits that require great skill in mining and through to production, and those companies with government-linked partnerships are worth more than raw tonnage.
Big backers with deep pockets are crucial in this segment, nothing is cheap and expect over runs.
Where to Next?
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