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Rare Earths

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from the morning wrap

Lithium and rare earths: Neodymium prices popped 8.6% on Monday, which is driving some upside for local names like Lynas (ASX: LYC), Meteoric Resources (ASX: MEI) and Arafura Rare Earths (ASX: ARU). Chinese lithium carbonate futures have also been trending strongly over the past week, up around 6.6% to 114,150 yuan a tonne. The Global X Rare Earth/Strategic Metals ETF rallied 2.94% overnight to close at the highest level since 10 January.

REMX_2024-04-10_08-09-42.png

VanEck Rare Earth/Strategic Metals ETF daily chart (Source: TradingView)​

 
Good afternoon
The special nature of REE with defense force application is clearly evident within this article:

DOD Looks to Establish 'Mine-to-Magnet' Supply Chain for Rare Earth Materials

DOD is advancing its goal of developing domestic supply chains to ensure continued access to the rare earth materials needed to manufacture the permanent magnets used in important U.S. military
www.defense.gov

LYC gets a mentioned along with MP Materials.

Interestingly, The F-35 Lightning II aircraft requires more than 900 pounds of rare earth elements. Each Arleigh Burke DDG-51 destroyer requires 5,200 pounds, and a Virginia class submarine needs 9,200 pounds. REE involving magnets are used in unmanned aerial vehicles, to generate electricity for electronic systems in aircraft and focus microwave energy in radar systems, they also are a critical part of commercial applications in the United States.

Accordingly to the Department of Defense article, REE are also used in other ways that don't involve magnets. Vehicle-mounted laser range finders, such as those found on Abrams M1A1/2 tanks, make use of rare earth elements, as do their portable counterparts and target designators. Also making use of rare earth elements are; fiber optics communication systems; cerium-polished optical lenses; and sonic transducers used in submarine sonar systems. 

The US of A is not going to want to be reliant on China for REE supply. Unless there is a major change in technologies, sure, could happen ... but demand for mine is a given, REE is here to stay for quite awhile yet. rcw1 opinion.

Kindly conduct your own due diligence.

Kind regards
rcw1
 
rcw1 said:
Good afternoon
The special nature of REE with defense force application is clearly evident within this article:

DOD Looks to Establish 'Mine-to-Magnet' Supply Chain for Rare Earth Materials

DOD is advancing its goal of developing domestic supply chains to ensure continued access to the rare earth materials needed to manufacture the permanent magnets used in important U.S. military
www.defense.gov

LYC gets a mentioned along with MP Materials.

Interestingly, The F-35 Lightning II aircraft requires more than 900 pounds of rare earth elements. Each Arleigh Burke DDG-51 destroyer requires 5,200 pounds, and a Virginia class submarine needs 9,200 pounds. REE involving magnets are used in unmanned aerial vehicles, to generate electricity for electronic systems in aircraft and focus microwave energy in radar systems, they also are a critical part of commercial applications in the United States.

Accordingly to the Department of Defense article, REE are also used in other ways that don't involve magnets. Vehicle-mounted laser range finders, such as those found on Abrams M1A1/2 tanks, make use of rare earth elements, as do their portable counterparts and target designators. Also making use of rare earth elements are; fiber optics communication systems; cerium-polished optical lenses; and sonic transducers used in submarine sonar systems. 

The US of A is not going to want to be reliant on China for REE supply. Unless there is a major change in technologies, sure, could happen ... but demand for mine is a given, REE is here to stay for quite awhile yet. rcw1 opinion.

Kindly conduct your own due diligence.

Kind regards
rcw1
Click to expand...
from the LYC thread, ...

"Lynas and Las Vegas-based MP are the world’s two biggest producers of rare earths outside of China. Both have the backing of the US Department of Defence to build processing plants in Texas to produce rare earth materials essential in modern weapons systems, electronics and in the renewable energy sector..."

In fact, scuttlebutt is that DoD is pushing the deal to create a viable non Chinese player, and Gina, deep pockets and all, would be in there, you bet, networking with the Seppo cousins.
 
Dona Ferentes said:
from the LYC thread, ...

"Lynas and Las Vegas-based MP are the world’s two biggest producers of rare earths outside of China. Both have the backing of the US Department of Defence to build processing plants in Texas to produce rare earth materials essential in modern weapons systems, electronics and in the renewable energy sector..."

In fact, scuttlebutt is that DoD is pushing the deal to create a viable non Chinese player, and Gina, deep pockets and all, would be in there, you bet, networking with the Seppo cousins.
Click to expand...
Hello Dona Ferentes,
yep ..
wonder why it took Gina so long to put good coin into LYC?? The DoD gig re Texas and LYC et.al, had been around for awhile. Amanda has just started saying really nice things about Gina. ha ha ha ha

Kind regards
rcw1
 

How to Invest in ASX Rare Earth Stocks​

How to Invest in ASX Rare Earth Stocks

Rare Earth elements are considered essential for a host of modern applications, providing opportunities for risk-tolerant investors and patient investors willing to wait for longer term rewards.
thebull.com.au


i hold ILU ( and have a 'low-ball' top up order in the market )
 
let's go crazy over Terbium

Terbium is never found in its pure form in nature.

Found in minerals:
It's present along with other rare earth elements in minerals such as:
  • Monazite: A reddish-brown phosphate mineral.
  • Xenotime: A phosphate mineral.
  • Euxenite: A brownish-black mineral.
  • Bastnasite: A carbonate fluoride mineral.
  • Cerite and Gadolinite:
  • Commercial sources:
    • Ion-adsorption clays: Southern China is a significant source.
    • Monazite and Bastnasite: These minerals are also important sources.
  • Extraction:
    Terbium is extracted using complex ion-exchange processes, and the metal is produced by reducing its anhydrous chloride or fluoride with calcium metal.
  • Mining locations:
    Terbium is mined in China, the USA, Brazil, India, and Australia
.
Robert Gottliebsen, in his usual breathless style, says a new way of extracting Terbium has been trialled in WA.

The" potential of the technology breakthrough known as the ‘‘Elazac’’ process.

"At least in theory and assuming the pilot can be scaled, Australia could be providing terbium concentrate within a year. However, the concentrates produced by Elazac will need to be refined either by an existing refinery in the US or a new operation in Australia or the US."

"...The Elazac process is based on separating tiny parts of material. It was developed to extract gold economically in WA’s Bamboo Creek Valley and in tailings from previous mining.

"To become cashflow-positive in treating gold, the Morgan family has spent an incredible $150m over 15 years of trial and error to develop the process. There were many disappointments that would have caused most large public companies to abandon the project.

"In the rare earths pilot, after first extracting the gold via Elazac, the terbium and other heavy rare earths were extracted via an adapted version of Elazac. Costs were slashed..."
.

 
Dona Ferentes said:
let's go crazy over Terbium
Click to expand...
RDM (Held) worth adding to your list. Something might come of Sybella for the patient. Potentially a huge resource from surface with a mooted cheap route to a base level of concentrate. Smaller amounts of Terbium and Dysprosium than Nd/Pr but handy to the mix as fetches a much higher price. As a cushion, RDM comes with a large share of maturing silver/lead copper/gold project - Maronan (MMA)

Screenshot_20250415_150250_Samsung Notes.jpg
 
Many of these rare earths resources will never be developed. I'll say most of them as it's too damn expensive. It won't stop mgt raising capital to pay themselves for the next ten years.

LYC was planning to build a RE processing facility in Texas 3 yrs ago but environmental delays are epic and construction still hasn't started. Meanwhile China can build one in months.

We've too much multi coloured tape and no bipartisan support for anything other than spending money they haven't got yet.
 
peter2 said:
Many of these rare earths resources will never be developed. I'll say most of them as it's too damn expensive. It won't stop mgt raising capital to pay themselves for the next ten years.

LYC was planning to build a RE processing facility in Texas 3 yrs ago but environmental delays are epic and construction still hasn't started. Meanwhile China can build one in months.

We've too much multi coloured tape and no bipartisan support for anything other than spending money they haven't got yet.
Click to expand...
Good afternoon
LYC will be in a position to refine heavy REE this calendar year
- in Australia/Malaysia. When this milestone is achieved, not if, it will be a resounding feat, miles ahead of its competitors outside China.

At present China is the only county that can refine heavy REE.

rcw1 does trade LYC.


Kind regards
rcw1
 
There are a lot of 'rare' earths but this is the only one I track on a day to day basis.

Screenshot 2025-04-15 at 17.37.41.png

Screenshot 2025-04-15 at 17.38.08.png

Seems to be recovering:

Screenshot 2025-04-15 at 17.38.19.png

You can see why the RE players went nuts a few years ago and then why they imploaded. A bit like lithium, nickel and tin and now uranium, again.

Common thread might be that these things aren't that 'rare' or you need to be a first mover with some deep pockets to get a mine up and running before the cycle falls over.
 

How can you not have confidence in the strategic vision of an Australian Labor government - especially this one? Clearly we will not be intimidated by China or suck up to them and will stand steadfastly by our American military ally.​

​

A strategic opportunity – but with strings attached​

Australia stands at the centre of a rare strategic inflection point. It is both a beneficiary of China’s retreat and a potential casualty of intensifying great power competition.

In a world where resources confer influence, the question for Australia is not simply whether it has the mineral deposits but whether it has the strategy to match.

If the government can capitalize on this moment – diversifying partnerships, investing in capabilities, and navigating allies and rivals with strategic care – it could emerge as a leader in a more diverse critical minerals landscape.

In the era of mineral geopolitics, possessing the resources is no longer enough. The real test is whether Australia has the foresight and the will to lead.

Marina Yue Zhang is associate professor, technology and innovation, University of Technology Sydney

Full Article at https://asiatimes.com/2025/04/australia-holds-key-to-countering-chinas-critical-mineral-ban/#
 
The market obviously thinks this tariff-China-rare earth thing is good for ASX explorers/developers at the moment. Most went up 50-100% this week.

Will it continue, or was it just a short term trading opportunity?

Screenshot 2025-04-18 at 15.21.30.png

Gina Rinehart-backed MP Materials has halted shipments of rare earth concentrate to China in a twist in the trade war playing out between Beijing and Washington.

New York-listed MP Materials said selling its rare earth concentrate to China under 125 per cent tariffs was “neither commercially rational nor aligned with America’s national interest”.

China dominates global rare earths and permanent magnets supply and has rattled big players in US defence and other key industries by moving to cut off supply.

Las Vegas-based MP Materials said it had been preparing for this moment since day one.

“Our mission, capital strategy, and execution reflect a long-term vision built to withstand short-term dislocation and emerge stronger,” it said.

“MP has invested nearly $US1bn to restore the full rare earth supply chain in the US. Today, our California refinery is processing nearly half of our production, with virtually all of that material sold into markets outside China – including Japan, South Korea, and the US.”

Mrs Rinehart’s private company, Hancock Prospecting, owns 8.5 per cent of MP Materials, which said it was now stockpiling rare earths concentrate.

Australia’s richest person also owns 8.2 per cent of ASX-listed Lynas Rare Earths, the biggest non-China supplier.

The two companies held merger discussions thought to have fizzled out early last year, with Lynas boss Amanda Lacaze later confirming they talked about the value of creating a Western rare earths champion of critical mass.

The Lynas share price has climbed almost 35 per cent in the past 12 months while MP Materials is up 57 per cent over the same period.
 
finicky said:

How can you not have confidence in the strategic vision of an Australian Labor government - especially this one? Clearly we will not be intimidated by China or suck up to them and will stand steadfastly by our American military ally.​

​

Click to expand...
lived most of my life in electorates where the ALP were elected in Federal , State and Council ,

not only am i immune to their pie-in-the-sky utterances , but my cynicism is heavy duty armor-plated

and US ally ???
cannon fodder more like it ( stand by ? , more like die in droves standing in the front of them , but that still can be safer than in the same trench/hole )
 
I was in MEI for a longer term bet. But, is there anything more to be made short term here? Has the spasm stopped and everything comes crashing back down, or does it have some legs left?

Screenshot 2025-04-19 at 12.00.24.pngScreenshot 2025-04-19 at 12.01.26.pngScreenshot 2025-04-19 at 12.01.51.pngScreenshot 2025-04-19 at 12.04.33.png

Watching insiders: the biggest breadcrumbs lead to rare earths

Insiders are showing that the biggest breadcrumbs in the resource industry are leading to Rare Earths.
www.livewiremarkets.com
 
Sean K said:
I was in MEI for a longer term bet. But, is there anything more to be made short term here? Has the spasm stopped and everything comes crashing back down, or does it have some legs left?

View attachment 197804View attachment 197805View attachment 197806View attachment 197807

Watching insiders: the biggest breadcrumbs lead to rare earths

Insiders are showing that the biggest breadcrumbs in the resource industry are leading to Rare Earths.
www.livewiremarkets.com
Click to expand...

Old jungle saying.. rules, sell it goes to the moon, hold and it will fall into the abyss.....
 


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