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ASX Rare Earths Stocks: 5 Biggest Companies
China is known for its dominance of the rare earths market, but Australian companies are making moves in the sector. Here's a look at the five biggest rare earths stocks on the ASX by market cap.
Prices and demand for rare earths took a hit in 2023, but the long-term outlook remains positive.
Rare earth elements (REEs) are key metals for high-tech applications, including permanent magnets, which have widespread potential, especially in the technology and electric vehicle sectors.
With future demand looking strong, countries around the world are keen to secure rare earths from sources outside of China — which is good news for rare earths companies in Australia. Indeed, looking at the next couple of decades, the International Energy Agency notes that rare earths demand could increase by up to seven times by 2040.
For investors interested in getting a foot in the market, below is a list of the largest ASX-listed rare earths stocks by market cap. Data for this stocks list was collected using TradingView's stock screener on November 24, 2023.
1. Lynas Rare Earths (ASX:LYC)
Market cap: AU$6.26 billion; current share price: AU$6.62
Lynas Rare Earths is Australia's largest rare earths miner, as well as the only significant rare earth materials producer in the world outside of China. Focused on integrated delivery, Lynas is a miner and supplier of high-grade rare earths. According to the company, its Mount Weld asset in Western Australia is one of the highest-grade rare earths mines in the world.
During its 2023 fiscal year, the company reported record production of neodymium and praseodymium (NdPr) at 6,142 tonnes. Its total rare earth oxide production reached 16,780 tonnes during the same period.
2. Iluka Resources (ASX:ILU)
Market cap: AU$2.97 billion; current share price: AU$6.90
Iluka Resources has decades of experience in the mining industry, mostly in the production of zircon and high-grade titanium-dioxide-derived rutile and synthetic rutile. However, in recent years, it has developed a rare earths portfolio.
At its Eneabba operation in Western Australia, Iluka has a strategic monazite-rich mineral stockpile that it plans to extract and process. The company is currently working on a feasibility study for a fully integrated rare earths refinery at Eneabba, which would produce separated rare earth oxides from its own feedstock and potentially from third-party feedstock as well. Construction will start once earthworks have been completed, with first production at the refinery expected in 2025.
Iluka’s Wimmera project in Victoria, Australia, also has the potential to be a long-term supplier of zircon and rare earths. Following a preliminary feasibility study conducted at Wimmera, the company's board approved AU$30 million in funding for a definitive feasibility study. Iluka expects to complete the study by the end of 2025.
3. Arafura Rare Earths (ASX:ARU)
Market cap: AU$401.53 million; current share price: AU$0.19
Arafura Rare Earths is advancing its Nolans NdPr project in Australia's Northern Territory, and is currently in the midst of construction. Arafura has plans for Nolans to be a vertically integrated NdPr operation with processing facilities on site. According to the company, the Nolans project will supply around 4 percent of global NdPr oxide demand once complete.
In April, the company signed an offtake agreement with Siemens Gamesa Renewable Energy that commences in 2026. The deal guarantees a five year contract under which Arafura will supply Siemens Gamesa with NdPr from Nolans. The supply deal will kick off at 200 tonnes for the first year, before increasing over time as the project reaches nameplate production. According to Arafura's latest quarterly report, early construction work at the Nolans project is complete, paving the way for full-scale construction, which it expects to commence in March 2024.
4. Northern Minerals (ASX:NTU)
Market cap: AU$177.32 million; current share price: AU$0.03
Northern Minerals is a rare earths company based in Australia. It is focused on developing its Browns Range dysprosium-terbium project in Western Australia and bringing the project's Wolverine deposit into production.
Northern Minerals is developing Browns Range through a three stage system, and the project has already been producing heavy rare earth carbonate since 2018. The company is now working on a definitive feasibility study for a commercial-scale mining operation and beneficiation plant at Browns Range that will respectively extract and process ore from Wolverine.
In November, the company received assays from a drilling program completed in March. Northern Minerals has begun directional drilling to upgrade its Wolverine resource from the inferred to indicated category, with partial funding from the federal government's Critical Minerals Development Program.
5. Hastings Technology Metals (ASX:HAS)
Market cap: AU$99.61 million; current share price: AU$0.76
Hastings Technology Metals is an Australian exploration and development company whose goal is to become a leading rare earths supplier. It plans to hone in on NdPr for the permanent magnets sector, and is currently focused on its two rare earths projects in Western Australia: the Yangibana project and the Brockman project. The Yangibana project is looking to produce a mixed rare earth carbonate that will be processed off site.
In an announcement from early May, Hastings finalized a binding term sheet with GR Engineering, which is set to design and construct the Yangibana beneficiation plant to ensure successful, on-time delivery of the first concentrate by Q1 2025. Yangibana is anticipated to produce around 3,400 tonnes of NdPr annually over a 17 year lifespan.
FAQs for ASX rare earths stocks
What are rare earths?
Rare earths are a category of elements that share many chemical properties. In fact, all but two — yttrium and scandium — are also called lanthanides. These elements are commonly found in the same deposits and are necessary for diverse technological applications such as rare earth magnets.
In total there are 17 rare earth elements, and they are split into light and heavy rare earths, with each segment being grouped together on the periodic table. On the light side, there are cerium, lanthanum, praseodymium, neodymium, promethium, europium, gadolinium and samarium, and on the heavy side there are dysprosium, yttrium, terbium, holmium, erbium, thulium, ytterbium, yttrium and lutetium.
Which countries have the most rare earths?
In terms of both rare earths reserves and rare earths production, China is the frontrunner by a long shot, with 44 million tonnes of reserves and 210,000 tonnes of production in 2022. However, Vietnam, Brazil and Russia all also have reserves above 20 million tonnes. With regards to production, the US is in second place at 43,000 tonnes due to the Mountain Pass mine in California, and Australia is in third place with 18,000 tonnes.
What makes rare earths rare?
Rare earths are actually relatively abundant in the Earth's crust, contrary to what their name suggests. However, they're quite dispersed instead of being found concentrated in specific areas, which means locating economic deposits to mine is difficult.
As China controls much of global rare earths production, many countries have deemed them critical minerals and are prioritizing supply chain security.
Article by Matthew Flood; FAQs by Lauren Kelly.
This is an updated version of an article originally published by the Investing News Network in 2018.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Matthew Flood, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. Now nearing five years as part of the INN team, she is passionate about delivering accurate and informative content to investors.
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Matthew Flood is a writer and editor from Montreal, Canada. He's been writing professionally for four years on a wide array of topics ranging from investments and real estate to cookware and home improvement. Matt also enjoys creative writing and has written two novels and a novella.
Learn about our editorial policies.
Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. Now nearing five years as part of the INN team, she is passionate about delivering accurate and informative content to investors.
Learn about our editorial policies.