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.
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.
1. MP Materials (NYSE:MP)
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.
2. Energy Fuels (NYSEAMERICAN:UUUU,TSX:EFR)
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.
3. NioCorp Developments (NASDAQ:NB)
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.
1. Aclara Resources (TSX:ARA)
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.
2. Ucore Rare Metals (TSXV:UCU)
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.
3. Mkango Resources (TSXV:MKA)
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.
1. Lynas Rare Earths (ASX:LYC)
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.
2. Iluka Resources (ASX:ILU)
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.
3. Arafura Resources (ASX:ARU)
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.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
