The global rare earths market is facing a bottleneck, with only two operating refineries outside of China struggling to meet demand. However, the tide is turning as new refineries are set to come online, providing a lifeline to ASX mining stocks with projects in Australia.
China currently refines a whopping 87% of the world’s rare earth elements (REEs), but other countries are now looking to diversify their supply chains. Australia, in particular, is positioning itself as a major producer and refiner of REEs.
Iluka Resources is constructing a $1.7 billion Eneabba refinery in Western Australia, set to begin production in 2026. Additionally, Hastings Technology Metals is advancing towards the construction of its Yangibana deposit, aiming to feed into Iluka’s refinery in the future.
Meanwhile, companies like Ucore Rare Metals and Rainbow Rare Earths are exploring innovative, cleaner ways to produce rare earths to meet increasing demand. Ucore aims to process rare earths using its RapidSX technology by mid-2025, while Rainbow Rare Earths has partnered with K-Technologies to employ a new continuous ion exchange technology.
In Australia, a wealth of rare earth projects are in development, such as Arafura Rare Earths’ Nolans project in the Northern Territory and OD6 Metals’ Splinter Rock and Grass Patch projects in Western Australia.
While challenges remain in the rare earths market, the potential for growth and innovation in the sector is undeniable. As new refineries come online and technology evolves, ASX mining stocks could capitalize on the changing landscape and meet the rising demand for rare earth elements.
