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The term “rare earth elements” (REEs) refers to a group of 17 metallic elements that are central to modern technologies. These include the 15 lanthanides (elements with atomic numbers 57…
Archive edition · Market data and company circumstances reflect 25 October 2025, when this newsletter was sent.
The term “rare earth elements” (REEs) refers to a group of 17 metallic elements that are central to modern technologies. These include the 15 lanthanides (elements with atomic numbers 57 through 71) plus the elements scandium (Sc) and yttrium (Y).
Despite the name, these elements are not rare in the Earth’s crust. What makes them rare is that they tend to occur in very low concentrations and are usually found mixed together in minerals which requires complex processing to extract fully.
Why do they matter? REEs possess special magnetic, luminescent and catalytic properties. That means they are essential for high-performance permanent magnets in electric vehicles (EVs) and wind turbines, for catalytic converters, for advanced electronics and defence equipment.
While all 17 matter, some are especially prominent in investment / industrial stories:
Grouping by light vs heavy REEs: Light rare earths (LREEs) are generally more abundant and less costly to produce; heavy rare earths (HREEs) are scarcer, more difficult to separate, and tend to command higher premiums.
Below are the key stages that turn raw rare earth ores into high-tech materials powering modern industries.
Understanding which companies sit at which stage (mining, separation, magnet manufacturing) helps assess risk/reward — upstream miners may benefit most from higher raw-material prices, while mid/downstream may benefit from supply bottlenecks and value-added margins.
China continues to dominate the rare earth industry, not only in mining but especially in the critical stages of separation and refining. A large portion of processed rare earth materials used in Western markets still originates from Chinese facilities. This concentration of processing capacity has made rare earth elements a matter of strategic importance for many governments.
In response, new mining and processing projects are emerging across Australia, North America, and Europe. However, these efforts face long development timelines, strict permitting requirements, and significant cost hurdles.
From an investment perspective, building a mine is only the beginning; without domestic separation plants and downstream magnet manufacturing, true supply independence remains out of reach. The full value chain, from extraction to end-use production, must evolve together to ensure a stable and secure global supply of rare earths.
Here are a few key drivers that make rare earths a compelling space for investors:
1.4.1 Technology & Clean-Energy Transition
The push to electrify transport and expand renewable energy (wind, solar) is increasing demand for magnets and materials that contain REEs. For example, each large wind turbine uses hundreds of kilograms of neodymium (Nd) and other REEs.
1.4.2 Emerging Supply Chains
Many countries are now attempting to build upstream mining, midstream separation and downstream magnet manufacturing to reduce dependency. This opens investment opportunities.
1.4.3 Cyclical & Structural Interplay
While long-term demand is structural (technology, clean energy, defence), near-term pricing can be influenced by mining bottlenecks and export controls.
Here is a selection of listed companies with meaningful exposure to rare earths, grouped by their role in the value chain, country and exchange.
Investing in rare earths isn’t just about betting on one commodity cycle. It’s about understanding where value is created across the supply chain and how policy, geography, and technology shape long-term returns.
Here’s what you can consider doing to build balanced exposure while managing both opportunity and risk:
- Commissioning of new separation/refinery plants
- Government policy (grants, loans, critical-minerals status)
- Supply-disruption risk (export controls, mine closures)
- Demand trends (EV adoption, wind installations, defence spending)
This article preserves the analysis in our weekly newsletter sent 25 October 2025. Market prices, forecasts and company circumstances reflect the time of publication and may have changed.
This material is general information, not personal financial advice or a recommendation to trade. Investing and trading involve risk, including loss of capital.