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 industry — neodymium and praseodymium are used in permanent magnet synchronous motors used in EV drive trains.
China’s dominance in rare earth 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.
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.
Ahead of the Chinese tariffs, the US is striving to secure a 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 earth 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.
Market cap: US$2.44 billion; share price: US$14.75
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.
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.
Market cap: US$967.2 million; share price: US$8.07
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.
According to the company, it is the first US company in decades to achieve commercial-scale, on-spec REE separation from monazite. The Phase 1 REE separation circuit was completed under budget and is now operating at full capacity. Energy Fuels anticipates commercial production of 850 to 1,000 metric tons of NdPr per year.
Market cap: US$77.42 million; current share price: US$2.10
Recent metallurgical testing has demonstrated the 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, expected in 2024, incorporating rare earth elements into the project’s mineral reserves.
The initial phase of this investigation will involve bench-scale testing, with potential progression to demonstration-scale testing based on results. Notably, this initiative will be conducted independently of NioCorp’s ongoing efforts to update its Elk Creek Project Feasibility Study.
Learn more about Aclara Resources, Ucore Rare Metals and Mkango Resources, the three largest Canada-listed rare earths stocks focused stocks by market cap.
Market cap: C$89.86 million; share price: C$0.54
Aclara Resources is advancing its Penco Module project in Chile, characterized by ionic clays abundant in heavy rare earths. Their objective is to generate rare earths concentrate utilizing an environmentally friendly extraction process. This approach aims to eliminate the need for a tailings facility, minimize water consumption and ensure the absence of radioactivity in the final product.
Market cap: C$40.18 million; share price: C$0.67
Market cap: C$30.87 million; share price: C$0.11
Mkango is positioning itself to be a leader in the production of recycled rare earth magnets, alloys and oxides. The company holds a 79.4 percent stake in Maginito, which owns HyProMag, a firm focusing on rare earth magnet recycling in the UK. Additionally, Maginito and CoTec are expanding HyProMag’s recycling technology to the US through their joint venture, HyProMag USA.
Mkango’s mineral assets include the advanced Songwe Hill rare earths project and its Pulawy rare earths separation project in Poland. It also holds a diverse exploration portfolio in Malawi that host resources such as rare earths, uranium, tantalum and niobium. Negotiations with the government of Malawi regarding the mining development agreement for Songwe Hill are ongoing, and Mkango is performing a strategic review based on the asset’s definitive feasibility study to potentially lower costs.
“ We see Japan as a major growth opportunity for Mkango and HyProMag, given its substantial and longstanding rare earth market presence and strategic alignment with the development of more robust rare earth supply chains and the objectives of the Minerals Security Partnership, of which Japan is a member,” Will Dawes, CEO of Mkango, said in the release.
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, which also holds the highest market capitalization among Australian rare earths companies.
Learn more about Lynas Rare Earths, Iluka Resources and Arafura Resources, the three largest ASX-listed rare earths stocks by market cap.
Market cap: AU$6.13 billion; share price: AU$6.54
Lynas Rare Earths is the leading separated rare earths producer outside of China, operating the Mount Weld mine and concentrator in Western Australia. The company processes mined material at its separation facility in Malaysia. Lynas is also ramping up processing at its Kalgoorlie rare earth processing facility in Australia.
Additionally, Lynas is working to establish a light rare earths processing facility and a heavy rare earths separation facility in Texas, US. These initiatives not only bolster Lynas’s position but also strengthen the rare earths industry in both Australia and the US.
The quarterly report also noted that progress on the Mount Weld expansion project is proceeding as scheduled. Stage One, focusing on concentrate dewatering, is well advanced with structural, mechanical, piping and electrical work underway. Simultaneously, Stage Two construction is accelerating with all essential equipment on site and concrete activities progressing.
Market cap: AU$2.99 billion; share price: AU$6.89
Iluka Resources is advancing its Eneabba rare earths refinery in Western Australia with significant 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.
Under the AU$2 billion Critical Minerals Facility, administered by Export Finance Australia, Iluka secured an AU$1.25 billion non-recourse loan. 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.
Market cap: AU$415.85 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 towards a final investment decision for Nolans, which is shovel ready.
Gas supply agreements were also finalized for the Nolans project, and operational readiness continued with safety case preparations under WorkSafe legislation. A share purchase plan raised AU$6.5 million to support interim funding for debt and larger-scale activities.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels and Aclara Resources are clients of the Investing News Network. This article is not paid-for content.
Leave a Reply