Rare earth elements (REEs) refer to a set of 17 metallic elements that are indispensable to modern technology. A single large wind turbine can contain around 600 kg of rare earth materials, and an electric car uses several kilograms of rare earth magnets in its motor – roughly ten times more than the amount in a conventional gasoline car. In the defense sector, REEs are critical for precision-guided munitions, radar systems, and aerospace components. In short, rare earths are small in volume but huge in impact, as “the vitamins of industry” that underpin high-growth tech markets.
Despite their name, most rare earths are relatively abundant in Earth’s crust. However, they rarely occur in economically concentrated forms, making extraction challenging. China currently accounts for about 60% of global rare earth mining output and 90% of rare earth processing. This near-monopoly has made the REE supply chain a geopolitical focal point. Governments in the U.S., Europe, and Australia are now pouring funding into domestic REE projects to reduce dependence on China, making rare earths a dual-theme of both secular demand growth and national security priority.
In this report, we highlight the top rare earth stocks to watch in 2025. These firms—all operating outside of China—were selected for their pure-play exposure to different steps of the rare earth value chain, from mining to refining to end-use.
Rare Earth Explorers & Miners (Upstream Pure-Plays)
Upstream rare earth miners are often small to mid-cap, since rare earth mining is a niche industry outside of China. They tend to specialize in certain deposits (light vs. heavy rare earth-rich ore bodies) and operate in Australia, North America, Africa, and Southeast Asia. Many are still in development or early production stages, given long project lead times. These firms typically derive most—if not all—of their value from such projects, making them pure-play rare earth stocks.
Lynas Rare Earths (ASX: LYC)
HQ: Australia; The largest rare earth producer outside China.
Lynas is the world’s largest producer of rare earth materials outside of China. It owns the high-grade Mt. Weld mine in Australia, which feeds a downstream processing plant. Lynas’s edge is its fully integrated supply chain – it mines ore at Mt. Weld and ships concentrate to its refinery in Malaysia to produce separated oxides, providing end-users with a non-Chinese source of NdPr (critical for magnets) and other rare earths. This positions Lynas as a linchpin supplier for customers in Japan, the U.S., and Europe who want diversified supply. The company is also building a new refinery in Kalgoorlie, Australia to handle initial ore processing domestically. With U.S. DoD funding, it’s also constructing a heavy rare earth separation plant in Texas – the first outside China for heavies. This could make Lynas a one-stop-shop for both light and heavy rare earths in coming years.
Lynas has a decade-long track record and established revenue, giving it a running start as Western governments pour support into non-Chinese rare earth supply chains. It essentially occupies a unique space as a proven rare earth miner-refiner at scale. However, Lynas faces unique regulatory hurdles – its Malaysian refinery has grappled with strict rules on radioactive waste. Malaysia has only granted an extension to Lynas until 2026 on the condition that radioactive residues are removed.
MP Materials (NYSE: MP)
HQ: United States; Reviving the U.S. rare earth mine.
MP Materials owns Mountain Pass in California, the only active rare earth mine in the United States. Mountain Pass was once the world’s top source of rare earths decades ago, and MP Materials is bringing it back as a pillar of a new American supply chain. Historically, MP exported concentrate to China for refining, but it is now building a fully integrated supply chain on U.S. soil. As of early 2025, MP achieved record quarterly production of 563 metric tonnes of NdPr oxide at Mountain Pass. In Texas, MP is constructing a factory – with General Motors as a partner/customer – to turn those alloys into finished magnets, expected to start volume production by late 2025.
MP Materials offers a near-complete “mine-to-magnet” story on U.S. soil. As a uniquely positioned rare earth stock, MP strongly aligns with America’s push to reshore critical mineral supply chains, and the company’s vertically integrated model could eventually tap into a huge domestic market. However, MP is currently dependent on a single major asset (Mountain Pass), and its transition to domestic processing means short-term revenue could dip. Execution risks around ramping up its new processing and magnet facilities are something to watch in the near term.
Arafura Rare Earths (ASX: ARU)
HQ: Australia; Upcoming Australian NdPr supplier.
Arafura is developing the Nolans project in Australia’s Northern Territory, a large rare earth deposit with a high proportion of NdPr. Nolans is envisioned as a vertically integrated mine-plus-processing operation on site, meaning Arafura plans to not only mine the ore but also crack and refine it into separated oxides at the project location. This could make Arafura a significant supplier of magnet-grade NdPr oxide (projected ~4,400 tonnes NdPr oxide per year at full production) over a mine life of nearly four decades. Arafura has also made major strides in de-risking Nolans. It secured cornerstone offtake agreements with South Korean automakers Hyundai and Kia to purchase up to 1,500 tonnes of NdPr oxide per year for seven years. The Australian government’s financing commitments (over A$200 million equity and facilitating debt funding) further de-risk the path to production.
For investors who believe in the EV revolution, NdPr is in the spotlight, as it’s the key ingredient for EV motor magnets. Arafura is one of a few near-term NdPr producers outside China, and it’s backed by end-users Hyundai and Kia. As a development-stage company, Arafura still needs to execute on a large construction project in a remote area – ensuring adequate funding and managing complex processing (including handling of radioactive waste byproducts) will be critical to its success.
Hastings Technology Metals (ASX: HAS)
HQ: Australia; Emerging rare earth miner with an eye on magnets.
Hastings is developing the Yangibana rare earth project in Western Australia, which boasts exceptionally high NdPr grades in its ore. The project is construction-ready, and in 2025 Hastings struck a major deal: Wyloo Metals (backed by Australian billionaire Andrew Forrest) agreed to take a 60% stake in Yangibana and jointly develop it. This strategic joint venture brings substantial funding and expertise, significantly de-risking the project and reducing Hastings’ capital burden. Hastings also had plans to collaborate on offtake with Neo Performance Materials (a downstream magnet player) – a sign of integrating into the broader magnet supply chain. In essence, Hastings differentiates itself by its Tier-1 resource and now a deep-pocketed partner to get it to production.
Hastings aims to fill a critical supply gap – providing high-purity NdPr feedstock to the West – and do so with an integrated customer in tow. With the Wyloo deal, Hastings has diluted its ownership in Yangibana, which means less direct control; however, the infusion of capital and managerial heft likely outweighs this. Still, Hastings has the risks of an early-stage mine developer – construction and commissioning must stay on schedule to meet the targeted 2026 first output.
Rainbow Rare Earths (LSE: RBW)
HQ: United Kingdom; Extracting rare earths from waste via “secondary mining.”
Rainbow is a UK-listed rare earth stock with an innovative approach to rare earth mining. Rather than a traditional mine, its flagship Phalaborwa project in South Africa involves extracting rare earths from phosphogypsum tailings (waste) left over by a past phosphoric acid operation. This “secondary mining” approach means no need for drilling or blasting; the material is already above ground in gypsum stacks. The economics look attractive: lower capital and operating costs than typical mines, since costly steps like mining and crushing are bypassed. Rainbow plans to produce separated magnet rare earth oxides (Nd, Pr, Dy, Tb) on site – capturing full value by refining right at Phalaborwa. The company also holds the halted high-grade Gakara deposit in Burundi (currently on hold due to local government issues), but Phalaborwa is its main focus.
If successful, Phalaborwa could have one of the highest operating margins of any rare earth project outside China, thanks to its head start with pre-processed material. Rainbow’s innovative process is promising but relatively unproven at commercial scale – extracting rare earths from phosphogypsum has historically been challenging. The company will need to confirm that its process can be scaled up economically.
Rare Earth Processors & Refiners (Midstream Integrators)
These rare earth stocks sit in the middle of the value chain. Their role is to take mined concentrate or feedstock and process it into refined rare earth materials (separated oxides, metals, etc.). These firms often operate sophisticated processing plants, also called separation facilities or refineries. Some also have their own upstream mines—making them integrated miners-processors—while others source raw material from third parties.
Iluka Resources (ASX: ILU)
HQ: Australia; Mineral sands veteran turning rare earth refiner.
Iluka is a seasoned Australian mineral sands producer (well known for zircon and titanium minerals) that is now charging into rare earth refining as a strategic pivot. The company is building the Eneabba rare earths refinery in Western Australia, which is set to be a fully integrated plant capable of producing separated light and heavy rare earth oxides (a capability even Lynas doesn’t fully have for heavy REEs). Notably, Iluka’s rare earth venture has strong government backing: it secured a A$1.25 billion low-cost loan and an additional A$400 million grant from the federal Critical Minerals Facility. This funding essentially covers a large portion of the project’s cost, de-risking it financially. The Eneabba refinery will process feedstocks both from Iluka’s own mineral sands (Iluka has stockpiled monazite-rich material from its mining operations) and from third parties. Initial production is expected by 2027, and it aims to churn out significant volumes of rare earth oxides, including those crucial heavies like dysprosium and terbium.
Iluka’s differentiator is its integration of mining and refining expertise – it controls raw material sources and is adding processing, making it a new major player in the West’s supply chain. The main risk here is execution and timing – Eneabba is a large, complex chemical plant project that must hit ramp-up targets in a market that is fast-moving. Rare earth refining is also new to Iluka’s skill set; any technical hiccups could affect its timeline. However, with government support and a strong balance sheet from its profitable sands business, Iluka is arguably better insulated than most juniors undertaking such a project.
Pensana Plc (LSE: PRE)
HQ: United Kingdom; Mine-to-magnet supply chain from Africa to Europe.
Pensana is developing an ambitious mine-to-magnet supply chain spanning Africa and Europe. It owns the Longonjo rare earth deposit in Angola – considered one of the largest undeveloped NdPr resources globally (JORC reserve over 100,000 tonnes NdPr oxide) – and plans to feed material from there into a planned processing refinery in Saltend, UK. Pensana’s thesis is to become a key independent supplier of magnet materials to Europe/US, outside of Chinese control. Uniquely, the Longonjo project has a comparatively low upfront capital cost for the mine and concentration plant (around $200–$300M) and has attracted significant financing from African development agencies. By early 2025, Pensana secured approximately $268 million in funding commitments to fully finance Longonjo’s development. This puts it on track to start producing a mixed rare earth carbonate in Angola, which would then be shipped to the UK for separation into oxides. Pensana’s Saltend refinery (located in the Saltend Chemicals Park) is set to be one of the first of its kind in Europe, targeting production of refined NdPr oxides and other magnet metals needed by European magnet makers.
If successful, Pensana will effectively create a new non-Chinese rare earth supply chain from ore to oxides to magnets (the company has mentioned working with UK/EU magnet manufacturing initiatives). Of course, Pensana’s integrated vision carries considerable complexity – it must execute a mining project in Angola (with associated jurisdiction and infrastructure risks) and build a high-tech separation plant in England. While the Angolan funding is a big positive, the Saltend refinery’s financing and construction timeline remain challenges (it likely requires additional capital and coordination with UK authorities). Any delays or cost overruns in either location could impact the other, and Pensana will need to manage a two-continent project carefully.
Energy Fuels (NYSE: UUUU)
HQ: United States; Uranium miner turned rare earth processor.
Energy Fuels is an interesting case among rare earth stocks. Originally a uranium mining company, it has leveraged its existing processing infrastructure to become a key rare earth refiner in the U.S. The company’s White Mesa Mill in Utah – the only licensed uranium mill in the States – has been repurposed to process rare earth-bearing minerals (like monazite sands). In 2021–2024 Energy Fuels built a rare earth separation circuit there and achieved a milestone: it successfully produced commercially separated NdPr oxide that meets specifications for magnet alloys, becoming the first U.S. company in decades to do so. Essentially, Energy Fuels can take “critical” ore (e.g. imported monazite from heavy mineral sands) and refine out the magnet metals domestically. It’s now operating that Phase 1 separation at full capacity and is securing additional feedstock – the company acquired projects in Brazil (Bahia) and made deals for sand supply from Australia and Madagascar to ensure a steady pipeline of rare earth-rich material.
Energy Fuels’ advantage is speed to market: by repurposing an existing plant, it jumped ahead in establishing non-Chinese rare earth refining. It’s also exploring heavy rare earth separation and partnerships (e.g. with neo magnet manufacturers) to further integrate. That said, Energy Fuels must juggle its dual identity – uranium and rare earth processing. Managing the radioactive elements in monazite (thorium, etc.) is a regulatory challenge, though one it is experienced with as a uranium processor. Another consideration is that its rare earth initiative depends on continuous supply of monazite sands; any disruption in sourcing or transport of those heavy mineral sands could impact throughput at White Mesa.
Ucore Rare Metals (TSX-V: UCU)
HQ: Canada; Technology-driven rare earth separator for North America.
Ucore is a Canadian company positioning itself as a technology-driven rare earth separator for North America. It is not yet a producer, but it’s developing a Strategic Metals Complex (SMC) in Louisiana, USA, where it aims to process rare earth concentrates into oxides. Ucore owns proprietary separation technology called RapidSX, a solvent-extraction-based process that is designed to be faster and more efficient than conventional methods. The company has been running a demonstration plant in Ontario to prove out RapidSX, supported by U.S. DoD funding, a testament to the strategic interest in their tech. Ucore has also been busy securing future feedstock sources: it owns the Bokan-Dotson Ridge heavy rare earth deposit in Alaska, and it has signed supply MOUs with projects in Canada, the U.S., Africa, and Australia to feed its planned Louisiana facility. By essentially acting as an independent toll processor for rare earths, Ucore could fill the crucial midstream gap for non-Chinese mines that lack their own refining.
If RapidSX works as advertised, Ucore could separate both light and heavy rare earths at lower cost or faster throughput, giving it a major competitive edge. However, Ucore is still pre-commercial, so technology scale-up risk is the big one. RapidSX has shown promise in pilot conditions, but it must demonstrate reliability at industrial scale. The company also needs substantial capital to build out the Louisiana plant and move into production. Until it achieves meaningful output, Ucore remains speculative.
Magnets & Advanced Materials (Downstream Products)
This group of rare earth stocks operate further down the value chain, turning refined rare earths into end products like permanent magnets, alloys, and other advanced materials. Neodymium-iron-boron (NdFeB) magnets (often with dysprosium or terbium added) represent the fastest-growing use of REEs. These magnets are critical components in modern motors, generators, and electronics. Downstream rare earth firms typically build their moats around sophisticated manufacturing know-how or IP.
Neo Performance Materials (TSX: NEO)
HQ: Canada; Vertically integrated specialist from oxides to magnets.
Neo Performance Materials is a global leader in advanced rare earth materials and magnets, with a highly integrated business spanning several continents. Notably, Neo’s Magnequench division is the world’s leading producer of bonded NdFeB magnetic powders – these are specialized powders used to make bonded magnets and magnetic components. Neo also produces sintered neodymium magnets and magnetic assemblies, as well as rare earth oxides and alloys. It operates one of the few commercial rare earth separation plants outside China (in Estonia, Europe) and is building Europe’s first sintered rare earth magnet factory in Estonia, slated to supply magnets for ~1.5 million EVs starting in 2025. In essence, Neo covers the supply chain from processing raw rare earths to making the high-performance materials that go into motors and electronics. This gives it a unique resilience – it can source material globally (it has had operations in China, Thailand, Estonia, and North America) and sell value-added products.
For investors, Neo offers pure-play exposure to rare earth downstream uses: magnet powders, magnets, and critical materials for electric motors and generators. Its customer base includes automakers and high-tech manufacturers. That also means Neo operates in a cyclical market – its revenues can be influenced by rare earth price swings and automotive demand cycles. A notable risk is that it historically had significant operations in China (though it has taken steps to reduce this, such as selling its Chinese separation facility). Geopolitical factors, like export controls, could affect its supply chain. Additionally, Neo faces competition from Chinese magnet suppliers; it must continue to innovate to maintain its technological edge and market share.
Australian Strategic Materials (ASX: ASM)
HQ: Australia; Mine-to-metal innovator.
Australian Strategic Materials is building a complete rare earths and critical metals supply chain with a unique approach. It owns the Dubbo Project in Australia, a large polymetallic deposit rich in rare earths (plus zirconium, niobium, hafnium). What sets ASM apart is that alongside developing the mine, it has established a Korean Metals Plant (KMP) in South Korea that produces rare earth metals and alloys. ASM has already started producing neodymium metal and NdFeB alloy at this facility. By doing so, ASM can supply magnet-ready material directly to magnet manufacturers. In 2023, it signed an agreement to sell Neodymium alloy to a U.S. magnet maker (Noveon), essentially linking the supply chain from Australian raw materials to U.S. end-use. This “mine-to-metals” strategy brings flexibility – while the Dubbo mine is being readied with final financing and customer contracts, ASM secures interim rare earth oxide feed from third parties (e.g. Vietnam) to keep its metals plant running.
In the long run, ASM could become a vertically integrated supplier of rare earth oxides, metals, and alloys outside China, serving markets in Asia, the U.S., and Europe with critical magnet materials. That said, ASM’s model involves multiple moving parts. The Dubbo project still requires significant capital and construction, and delays in developing the mine could leave the Korean plant dependent on external feedstock longer than planned. There’s also scale-up risk as the KMP moves from initial output to larger volumes. However, ASM has garnered interest due to Western governments’ support for diversified supply chains, which may help mitigate some financial risk if strategic partners come on board.
Mkango Resources (TSXV: MKA)
HQ: Canada; Rare early circular economy – recovering end-of-life magnets.
Mkango is a small-cap rare earth stock with a dual focus on primary production and recycled magnets. On the primary side, it owns the Songwe Hill rare earth deposit in Malawi, a development-stage project with a rich mix of magnet metals (Nd, Pr, Dy, Tb). However, what really differentiates Mkango is its 79%-owned subsidiary Maginito, which in turn owns HyProMag – a company commercializing a patented technology for recycling rare earth magnets from scrap (the HPMS process). Mkango/Maginito are commissioning the first rare earth magnet recycling facilities in the UK and Germany. In fact, a pilot plant using HPMS was launched in 2024, and commercial production of recycled NdFeB magnets is expected to begin in the UK by 2025. This positions Mkango as a pioneer in the circular economy aspect of rare earths – recovering magnets from end-of-life electronics, hard drives, and EV motors. The company has also secured EU support: its Polish subsidiary’s planned separation plant was designated a strategic project under the EU’s Critical Raw Materials Act, and it’s benefiting from European grant funding for its recycling tech.
Mkango offers an innovative angle on the rare earth theme, with potential revenue from both mining (longer term) and recycling (near term) of magnet metals. However, Mkango is still pre-revenue and relatively early-stage. Its recycling technology must prove scalable and profitable, and while initial results are positive, large-scale operations have yet to be tested. At the same time, the company would need substantial financing to build Songwe Hill in Malawi – a project in an emerging market that carries political and logistical risks. Mkango’s ambitious two-pronged strategy (mining + recycling) could stretch its small team and resources, but success in either prong – especially magnet recycling in Europe – could create significant value.
Shin-Etsu Chemical (TSE: 4063)
HQ: Japan; A top manufacturer of rare earth magnets outside China.
Shin-Etsu is a large Japanese chemical company, and notably one of the world’s top manufacturers of rare earth magnets outside China. It produces high-performance neodymium-iron-boron (NdFeB) magnets, supplying automotive and electronics industries. Shin-Etsu has been investing to expand magnet capacity in response to EV demand – for example, it doubled capacity at its Vietnam magnet facility to about 2,200 tonnes/year, solidifying its status as a major global magnet supplier. The company’s magnet division benefits from Shin-Etsu’s deep expertise in materials science (they apply advanced processing to achieve magnets with high heat resistance and strength).
Shin-Etsu offers exposure to the end-use side of rare earths: it profits when automakers and wind turbine producers buy more magnets. It’s also a relatively stable, established player with a long track record. That said, Shin-Etsu is a diversified enterprise – its magnet segment is just one part of a much larger chemicals business (including silicon wafers, PVC, etc.). Therefore, compared to other rare earth stocks on this list, its thematic purity is moderate. Also, like all magnet makers outside China, Shin-Etsu relies on rare earth metal feedstock that is still largely sourced from China, so supply interruptions or export restrictions could impact its magnet production.