The 25 % tariff, introduced by the US authorities in Could 2024, goals to each defend American industries from China’s commerce practices and help home manufacturing. One type of magnets the tariffs will have an effect on is sintered neodymium-iron-boron (NdFeB) magnets, essential for electrical automobile motors and wind generators.
This marks the primary time uncommon earth magnets are included in Part 301 tariffs, signaling a major transfer within the US-China commerce battle. The initiative is a part of broader efforts to bolster US vitality and nationwide safety.
In the meantime, the EU can also be in search of to scale back its reliance on Chinese language uncommon earths by way of a brand new regulation enacted in Could, which goals to considerably enhance home manufacturing of crucial minerals, together with uncommon earths, by 2030.
In early July, China’s State Council launched new rules to tighten management over the nation’s uncommon earth sources and safe its provide chain. Taking impact on October 1, 2024, these new guidelines impose strict oversight on the mining, smelting and buying and selling of uncommon earth parts. In addition they ban the export of know-how for extracting and separating uncommon earths in addition to for making uncommon earth magnets.
These latest escalations could possibly be a boon to uncommon earth mineral and uncommon earth magnet shares working within the area exterior of China. To assist paint a greater image of the REE panorama, the Investing Information Community has compiled an inventory of the most important uncommon earths shares by market cap on US, Canadian and Australian inventory exchanges. Information was gathered on October 2, 2024, utilizing TradingView’s inventory screener.
US uncommon earths shares
To bypass Chinese language tariffs, the US is striving to safe a steady home provide of REEs exterior China. The US has huge uncommon earths reserves and is the second largest international REE producer due to its sole working mine, Mountain Move. Nonetheless, it presently lacks ample processing amenities. American uncommon earth firms are working to deal with this imbalance, presenting funding alternatives for these trying to capitalize available on the market’s development potential.
Be taught extra about MP Supplies, Vitality Fuels and NioCorp Developments, the three largest US uncommon earths shares by market cap, beneath.
1. MP Supplies (NYSE:MP)
Market cap: US$2.9 billion
Share worth: US$17.54
MP Supplies, the most important producer of uncommon earths exterior China, focuses on high-purity separated neodymium and praseodymium (NdPr) oxide, heavy uncommon earths focus, lanthanum, and cerium oxides and carbonates.
The corporate went public in mid-2020 after buying the Mountain Move mine in California, the one operational US-based uncommon earths mine and processing facility. In Q3 2023, MP Supplies started producing separated NdPr, marking a major milestone. The corporate plans to extend uncommon earth oxide manufacturing by 50 % inside 4 years.
In April, MP Supplies was awarded US$58.5 million to help the development of the primary absolutely built-in uncommon earth magnet manufacturing facility within the US. This funding, a part of the Part 48C Superior Vitality Challenge tax credit score, was granted by the IRS and Treasury following a variety course of that evaluated round 250 tasks primarily based on their technical and business viability, in addition to their environmental and neighborhood affect.
Positioned in Fort Value, Texas, the power will produce the NdFeB magnets essential for EVs, wind generators and protection techniques. The corporate is focusing on business manufacturing by late 2025. MP Supplies will supply uncooked supplies from its Mountain Move mine, creating an end-to-end provide chain with built-in recycling.
Through the second quarter of 2024, MP reported that NdPr manufacturing greater than doubled quarter-over-quarter to 272 metric tons. The corporate expects that output will enhance an extra 50 % within the third quarter.
2. Vitality Fuels (NYSEAMERICAN:UUUU,TSX:EFR)
Market cap: US$914.91 million
Share worth: US$5.59
Vitality Fuels is a number one US uranium and uncommon earths firm that operates key uranium manufacturing facilities together with the White Mesa mill in Utah and the Nichols Ranch and Alta Mesa tasks in Wyoming and Texas.
The corporate completed the development of Section 1 REE separation infrastructure at White Mesa in early 2024, and in June it reported the profitable business manufacturing of separated neodymium-praseodymium that meets the specs required for REE-based alloy manufacturing.
In response to the corporate, it believes it’s the first US firm in a long time to realize commercial-scale, on-spec uncommon earths separation from monazite. The Section 1 REE separation circuit was accomplished underneath finances and is now working at full capability. Vitality Fuels anticipates business manufacturing of 850 to 1,000 metric tons of NdPr per 12 months, making it one of many largest exterior China.
Moreover, the mill will produce a heavy REE focus for pilot-scale checks to doubtlessly develop business dysprosium and terbium separation amenities sooner or later.
Vitality Fuels has additionally made strikes to safe sources of monazite sand to course of at its White Mesa mill. In 2023, the corporate acquired the Bahia undertaking in Brazil to doubtlessly provide 3,000 to 10,000 MT of REE-bearing monazite sand yearly.
In early June 2024, Vitality Fuels executed a three way partnership with Astron (ASX:ATR) for Astron’s Donald uncommon earth and mineral sands undertaking in Victoria, Australia, of which Vitality Fuels now has the choice to earn 49 %. After garnering shareholder approval, the three way partnership was finalised in late September. Donald is anticipated to start manufacturing as early as 2026 and provide the White Mesa mill with 7,000 to eight,000 MT of monazite sand in uncommon earth focus yearly in Section 1, with plans to increase output in subsequent phases.
Including to its uncommon earth roster, Vitality Fuels introduced plans to amass Australian mineral sands firm Base Sources (ASX:BSE) in September.
Commenting on the deal and the brand new property, Vitality Fuels CEO Mark Chalmers highlighted the uncommon earth portfolio potential. “The Toliara, Bahia and Donald tasks are anticipated to change into large-scale, world-class, and low-cost heavy mineral sand tasks within the coming years, producing titanium, zirconium and uncommon earth minerals,” he mentioned.
3. NioCorp Developments (NASDAQ:NB)
Market cap: US$77.32 million
Share worth: US$2.00
NioCorp Developments is advancing its Elk Creek undertaking in Nebraska, a number one crucial minerals enterprise that includes North America’s highest-grade niobium deposit underneath growth, with important scandium manufacturing capability. An up to date 2022 feasibility examine highlighted prolonged mine life, improved ore grades and enhanced economics for niobium, scandium and titanium.
Current metallurgical testing has demonstrated the power to supply high-purity magnetic uncommon earth oxides at a restoration fee of 92 % or greater. These outcomes will inform an up to date feasibility examine, anticipated in 2024, incorporating uncommon earth parts into the undertaking’s mineral reserves.
In April, the corporate delisted from the TSX because of considerably decrease buying and selling volumes than its NASDAQ itemizing.
A day later, NioCorp introduced plans to discover the feasibility of integrating the recycling of everlasting uncommon earth magnets into its proposed Elk Creek crucial minerals undertaking in Southeast Nebraska. An evaluation shall be undertaken to raised perceive the technical and business viability of recycling post-consumer neodymium-iron-boron magnets again into separated uncommon earth oxides, which might then be utilized within the manufacturing of recent NdFeB magnets.
The preliminary part of this investigation will contain bench-scale testing, with potential development to demonstration-scale testing primarily based on outcomes. Notably, this initiative shall be carried out independently of NioCorp’s ongoing efforts to replace its Elk Creek undertaking’s feasibility examine.
In Could, the corporate shared the outcomes of a scoping examine targeted on utilizing a Railveyor system to impress the Elk Creek mine, which the examine discovered may lower prices, shorten the timeline to full business manufacturing and decrease the mine’s carbon footprint. The system would ship ore to processing amenities utilizing a narrow-gauge gentle rail system.
Within the preliminary fiscal 12 months monetary outcomes launched on August 26, NioCorp reported a web lack of US$11.395 million, or US$0.30 per share. The outcomes for the interval ending June 30, 2024, marked a year-over-year enchancment in comparison with the earlier fiscal 12 months’s lack of US$40.08 million, or US$1.34 per share.
Canadian uncommon earths shares
As a part of Canada’s Essential Minerals Technique, the federal government has allotted C$3.8 billion in federal funding for alternatives throughout the crucial minerals complete worth chain, from exploration to recycling. Uncommon earth parts are among the many minerals listed as crucial.
Moreover, the federal government designated C$7.5 million in funding to help the institution of a uncommon earths processing facility in Saskatoon, Saskatchewan. In mid-September, the Saskatchewan Analysis Council (SRC) introduced that the power reached commercial-scale manufacturing, making it the primary in North America to realize this milestone.
At the moment, the power produces 10 metric tons of neodymium-praseodymium metals monthly. The SRC plans to extend month-to-month manufacturing to 40 MT by December, with an annual purpose of 400 MT by early 2025.
Find out about Aclara Sources, Ucore Uncommon Metals and Mkango Sources, the three largest Canada-listed uncommon earths shares by market cap, beneath.
1. Aclara Sources (TSX:ARA)
Market cap: C$83.2 million
Share worth: C$0.49
Aclara Sources is advancing its Penco Module undertaking in Chile, characterised by ionic clays plentiful in heavy uncommon earths. Their goal is to generate uncommon earths focus using an environmentally pleasant extraction course of. This strategy goals to eradicate the necessity for a tailings facility, decrease water consumption and make sure the absence of radioactivity within the ultimate product.
Moreover, the corporate found its Carina Module undertaking in 2023, and in December disclosed an preliminary inferred useful resource for the undertaking, encompassing roughly 168 million MT with a grade of 1,510 elements per million whole uncommon earth oxides and 477 elements per million desorbable uncommon earth oxides.
Aclara efficiently concluded its semi-industrial pilot plant program for the Penco Module in September 2023, yielding 107 kilograms of moist high-purity heavy uncommon earth focus from 120 MT of ionic clays. Full-scale manufacturing on the Penco Module is slated to start within the second quarter of 2027.
On March 1, Aclara obtained its second patent for an revolutionary course of to extract heavy uncommon earths from ionic clays in an environmentally pleasant method. The patent, granted in Chile and legitimate for 20 years, focuses on the round mineral harvesting course of and establishes a totally enclosed flowsheet. The corporate submitted a brand new environmental affect evaluation for its Penco Module undertaking in June that options an improved design addressing environmental and social issues.
Aclara and Vacuumschmelze, often known as VAC, penned a memorandum of understanding in early July to collectively pursue a “mine-to-magnets” resolution for ESG-compliant everlasting magnets. The non-binding settlement goals to satisfy the rising demand for electrical automobiles and clear applied sciences, addressing the restricted and Asia-centric provide of uncommon earth minerals. The partnership seeks to develop a resilient, ESG-focused provide chain for these crucial elements.
In an August replace, Aclara introduced that the Environmental Influence Evaluation (EIA) for its Penco Module undertaking was transferring to the subsequent approval stage.
Later within the month Aclara signed a memorandum of understanding with the State of Goiás and Nova Roma to expedite the Carina Module undertaking, emphasizing its significance for native growth and Brazil’s crucial minerals provide. This was adopted by the launch of an up to date preliminary financial evaluation for the Carina Module that includes preliminary capital prices of US$593 million and sustaining capital prices of US$86 million.
2. Ucore Uncommon Metals (TSXV:UCU)
Market cap: C$37.11 million
Share worth: C$0.60
Ucore Uncommon Metals is targeted on the exploration and separation of uncommon earth parts in Canada and the US. The corporate owns the Bokan-Dotson Ridge uncommon earths undertaking in Alaska and is creating a strategic metals advanced for processing heavy and lightweight uncommon earths in Louisiana. Ucore acquired an 80,800 sq. foot brownfield facility in Alexandria, Louisiana, for creating its first business REE processing facility in January.
In Canada, Ucore’s Ontario-based RapidSX demonstration plant, operated by Kingston Course of Metallurgy, was commissioned to judge the techno-economic benefits, scalability and business viability of the RapidSX know-how 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 Division of Protection, granted to Ucore’s subsidiary, Innovation Metals, to show the capabilities of the plant.
In late April, Ucore reported that it examined a blended uncommon earth carbonate from Protection Metals’ Wicheeda undertaking and confirmed it was appropriate for commercial-scale processing at Ucore’s deliberate amenities. In response to the discharge, “(Wicheeda) is a supply of fabric that may change into a elementary financial and technical element to Ucore’s plan of creating a number of SMC’s throughout North America.”
On July 9, Ucore introduced the execution of a non-binding memorandum of understanding with Cyclic Supplies that goals to to qualify Cyclic’s recycled uncommon earth oxide product in Ucore’s course of. It will begin with the usage of preliminary trial portions of Cyclic’s provide to help Ucore’s uncommon earth demonstration program at its RapidSX facility. Moreover, the settlement positions Cyclic Supplies as a possible long-term supply for Ucore’s deliberate amenities within the US and Canada.
In mid-August Ucore and Meteoric Sources (ASX:MEI) signed a memorandum of understanding for Meteoric to produce 3,000 MT of whole uncommon earth oxides from its Caldeira uncommon earth ionic clay undertaking in Brazil to Ucore’s Louisiana strategic metals advanced.
An identical deal was established with Australia’s ABx Group (ASX:ABX) in early September. The settlement will see ABx provide Ucore with blended uncommon earth carbonates from its ionic adsorption clay uncommon earth useful resource in Northern Tasmania.
3. Mkango Sources (TSXV:MKA)
Market cap: C$31.69 million
Share worth: C$0.12
Mkango is positioning itself to be a pacesetter within the manufacturing of recycled uncommon earth magnets, alloys and oxides through its 79.4 % stake in Maginito with associate CoTec Holdings. Mkango additionally has mineral property, together with the superior Songwe Hill uncommon earths undertaking in Malawi.
Mkango’s mineral property embody the beforehand talked about superior Songwe Hill uncommon earths undertaking in Malawi, which is focusing on neodymium, praseodymium, dysprosium and terbium, and its Pulawy uncommon earths separation undertaking in Poland. It additionally holds a various exploration portfolio in Malawi that host sources corresponding to uncommon earths, uranium, tantalum and niobium.
On the finish of July, Mkango’s wholly owned subsidiaries and the federal government of Malawi signed a mining growth settlement for the Songwe uncommon earth undertaking confirming the fiscal phrases for its growth, together with a ten % curiosity to Malawi’s authorities and exemption from customized and excise duties imports and exports.
Maginito owns HyProMag, a agency specializing in uncommon earth magnet recycling on the Tyseley Vitality Park in Birmingham, UK. HyProMag can also be the licensee of the Hydrogen Processing of Magnet Scrap (HPMS) course of, which demagnetizes and liberates uncommon earth magnets from scrap.
A pilot plant utilizing a long-loop recycling course of underpinned by the HPMS course of was simply commissioned in July, and business operations are anticipated to begin in Q1 2025. Moreover, Maginito is increasing HyProMag’s recycling know-how to the US by way of the three way partnership HyProMag USA, with a feasibility examine underway.
In early June, Mkango introduced that HyProMag has entered a non-binding memorandum of understanding with Envipro Holdings, a Japanese recycling and supplies buying and selling firm, to develop uncommon earth magnet recycling initiatives in Japan and the UK, together with advertising and doubtlessly growth of its HyProMag know-how in Japan, in addition to scrap recycling trials in each international locations.
In an August replace, Mkango reported that HyProMag will obtain 350,125 euros to develop its eco-friendly NeoLeach know-how, which is able to additional improve metals recovered with HPMS. The funding is a part of the 8 million euro GREENE undertaking by the European Fee’s Horizon Europe Programme, aiming to enhance the useful resource effectivity and efficiency of uncommon earth everlasting magnets.
In early October, Mkango and HyProMag secured 218,932 kilos in authorities grants for recycling methods underneath the Innovate UK initiative to advance its recycling routes.
Australian uncommon earths shares
Australia ranks among the many globe’s prime uncommon earths producers and possesses the fifth largest reserves of those minerals. The nation is notable for internet hosting the most important provider of uncommon earths exterior of China, which additionally holds the very best market capitalization amongst Australian uncommon earths firms.
Be taught extra about Lynas Uncommon Earths, Iluka Sources and Arafura Sources, the three largest ASX-listed uncommon earths shares targeted shares by market cap.
1. Lynas Uncommon Earths (ASX:LYC)
Market cap: AU$7.37 billion
Share worth: AU$7.80
Lynas Uncommon Earths is the main separated uncommon earths producer exterior 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 uncommon earth processing facility.
In mid-2023, Lynas obtained AU$20 million from the Australian authorities’s Fashionable Manufacturing Initiative. This funding helps the Apatite leach circuit undertaking at Lynas’ Kalgoorlie facility. The corporate marked a pivotal second in December when the Kalgoorlie facility achieved its first manufacturing milestone, signaling the transition from commissioning to full-scale operation.
Moreover, Lynas is working to ascertain a lightweight uncommon earths processing facility and a heavy uncommon earths separation facility in Texas, US. These initiatives not solely bolster Lynas’s place but additionally strengthen the uncommon earths business in each Australia and the US.
The corporate processes mined materials at its separation facility in Malaysia. Within the March 2024 quarter, Lynas reported robust manufacturing charges, together with 1,724 metric tons of NdPr, following profitable ramp-up efforts in Malaysia. Regardless of a difficult market with low NdPr costs averaging US$47 per kilogram, quarterly gross sales income reached AU$101.2 million.
In late June, Lynas introduced plans to start manufacturing of separated dysprosium and terbium merchandise at its Malaysian operations within the 2025 calendar 12 months.
In August, Lynas reported a 92 % enhance in mineral sources and a 63 % rise in ore reserves at its Mount Weld web site. Mineral sources have expanded from 55.4 million to 106.6 million MT at 4.12 % whole uncommon earth oxides, whereas ore reserves have grown from 19.7 million to 32 million MT at 6.44 %.
The brand new estimates embody important will increase in contained heavy uncommon earth parts and help a mine lifetime of over 20 years at expanded manufacturing charges. Moreover, saved tailings had been added to the ore reserves because the operations have the power to reprocess them to recuperate extra uncommon earth minerals.
In its full 12 months fiscal outcomes 2024, Lynas reported an AU$226 million decline in web revenue after tax. Firm CEO Amanda Lacaze attributed the lower to a difficult market, decrease manufacturing tallies and upgrading downtime.
“While NdPr manufacturing decreased by 8 %, in a 12 months once we undertook a significant works program at Lynas Malaysia, whole prices diminished by 17 % in FY24 vs FY23, a mirrored image of the continued deal with capturing efficiencies throughout the enterprise,” she wrote.
2. Iluka Sources (ASX:ILU)
Market cap: AU$2.91 billion
Share worth: AU$6.82
Iluka Sources is advancing its Eneabba uncommon earths refinery in Western Australia with important backing from the Australian authorities, which goals to bolster the nation’s footprint within the international uncommon earths market by tapping into its plentiful reserves. The corporate additionally owns zircon operations in Australia, together with Jacinth-Ambrosia, the world’s largest zircon mine.
Iluka secured an AU$1.25 billion non-recourse mortgage for Eneabba underneath the AU$2 billion Essential Minerals Facility administered by Export Finance Australia. This funding will help the event of a totally built-in refinery able to producing each gentle and heavy separated uncommon earth oxides. The ability will course of materials from Iluka’s personal feedstocks and third-party suppliers, with preliminary manufacturing anticipated to start by 2025.
Moreover, Iluka is progressing its Wimmera undertaking in Victoria, specializing in mining and beneficiation of fine-grained heavy mineral sands within the Murray Basin. This undertaking goals to produce zircon and uncommon earths over the long run. A definitive feasibility examine for Wimmera is scheduled for completion by the top of 2025.
Within the firm’s Q2 quarterly outcomes, Iluka famous that Q2 exercise at Eneabba included the “development of main engineering packages, conclusion of camp lodging works and preparation for commencing the subsequent part of web site works.”
On August 21, Iluka launched its half 12 months outcomes, which included a AU$106 million income lower in comparison with the primary half of 2023. The corporate pointed to international macroeconomics, operational and market self-discipline and capital investments for the discount.
3. Arafura Sources (ASX:ARU)
Market cap: AU$418.93 million
Share worth: AU$0.17
Arafura Sources, an Australian uncommon earths agency, has secured authorities funding to advance its Nolans uncommon earths undertaking within the Northern Territory. Arafura is presently working in direction of a ultimate funding resolution for Nolans, which is shovel prepared.
Nolans is envisioned as a vertically built-in operation with on-site processing amenities. A 2022 mine report updates Nolans’ anticipated lifespan to 38 years, focusing on an annual manufacturing capability of 4,440 MT of NdPr focus. The undertaking’s definitive feasibility examine highlights important concentrations of neodymium and praseodymium, alongside all different uncommon earths in various portions.
Arafura has inked a binding offtake agreements with Hyundai Motors (KRX:005380), Kia (KRX:000270), and Siemens Gamesa Renewable Vitality. Moreover, the corporate has a non-binding memorandum of understanding with Normal Electrical Firm’s (NASDAQ:GE) GE Renewable Vitality to collaborate on establishing sustainable uncommon earths provide chains.
In its replace for the June quarter, Arafura famous that it had secured conditional approval for over US$1 billion in debt funding for the Nolans undertaking. With security preparations underway, Arafura is nearing a ultimate funding resolution and is about to start development as soon as financing is finalized.
In a late August press launch, Arafura introduced the signing of a memorandum of understanding with Canada’s Saskatchewan Analysis Council (SRC) to course of uncommon earths from Arafura’s Nolans undertaking into dysprosium and terbium oxides at SRC’s facility in Canada. The collaboration goals to help international provide chain diversification for vitality transition applied sciences.
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Securities Disclosure: I, Georgia Williams, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: Vitality Fuels and Aclara Sources are shoppers of the Investing Information Community. This text will not be paid-for content material.
