The 7 Best Australian Rare-Earth Stocks to Buy Now in 2025

Australia is home to many globally renowned rare-earth companies, whose stocks trade on the Australian Stock Exchange (ASX). In this guide, we review the best Australian rare-earth stocks in the market.

The demand for rare-earth metals, essential components in technologies like electric vehicles, wind turbines, and solar panels, is estimated to rise as consumers and government around the world become increasingly concerned about climate change.

The International Energy Agency expects the demand for rare earth elements (REEs) to increase by up to seven times by 2040. ASX-listed rare-earth stocks are well positioned to benefit from this increased demand.

Additionally, rare-earth metals have been subject to tariffs and retaliation in the trade war between the US and China. The fact that many countries, including the US, are keen to secure rare earths from sources outside of China also bodes well for ASX rare-earth stocks.

An in-depth look at these top Australian rare-earth stocks

Now, let’s see what makes each of these top ASX rare-earth stocks investable.

1. Lynas Rare Earths (LYC): The biggest rare-earth minerals producer outside China

Lynas (ASX:LYC) is the only significant producer of rare-earth materials outside of China. The Australian company accounted for 20% of the world’s supply at the close of FY 2021.

What makes Lynas special is that it mines rare-earth materials and refines them at its existing processing facilities. To further increase its production, the company is developing a new facility in Texas, US, and expanding operations at Mt. Weld.

Lynas’ Mt Weld mine in Western Australia is one of the biggest deposits of rare-earth metals, and its Malaysian processing plant is the largest in the sector. In June, the company revealed that it’s on track to commence production of two rare earth products at its Malaysia facility next year.

Lynas’ shares are up over 14% this year despite the company reporting a larger-than-forecast drop in profit for the first half of the 2025 fiscal year due to a decline in market prices influenced by China of neodymium and praseodymium (NdPr), an alloy used in strong magnets, The increased cost of sales also hurt profit.

Net profit after tax was AUD $5.9 million for the six months through December 3, an 85% decline from AUD $39.54 million in the same year-earlier period. Revenue rose 8% to AUD $254.3.

It seems investors have shown confidence in the stock and Lynas’ ability to navigate the challenging market. According to management, it intentionally put inventory selling on hold due to the low-price environment.

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2. Northern Minerals (NTU): Assessing the feasibility of the Browns Range project

Northern Minerals (ASX:NTU), with over 2,750 square kilometers of licensed land across Western Australia and Northern Territory, has the potential to become the first major producer of dysprosium outside of China. Browns Range in the north of Western Australia and Boulder Ridge in the Tanami region of the Northern Territory are Northern Minerals’ main projects.

Northern Minerals focuses on developing its Browns Range Project, which has high levels of rare earth elements dysprosium and terbium, in three stages. The company targets the start of production in the final quarter of 2027.

The company also has a strategic partnership with another Australian rare-earth company, Iluka Resources, for assistance in funding and processing of REEs.

Northern Minerals is presently experiencing losses, but analysts expect it to post a profit next year as it makes progress with its projects.

Shares of the company has gained 40% this year, and the consensus rating among analysts is ‘Strong Buy.’ Its importance is evident from Australia’s Foreign Investment Review Board’s decision last year to deny a Chinese fund to raise its ownership in Northern Minerals, on national interest grounds.

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3. Iluka Resources (ILU): Mineral sand producer capitalises on rare-earth byproducts

Iluka Resources (ASX:ILU) is primarily a mineral sands producer, and one of its by-products is a mineral containing rare earths, called monazite. The company has decades of mining experience and has been stockpiling monazite since 1990 with a plan to use it at its Eneabba rare earth refinery in Western Australia.

Currently, the company is working on a feasibility study for a fully integrated rare earth refinery at Eneabba, while it expects to start production at the refinery in 2025. Iluka Resources has also secured a $1.25 billion loan from the Australian government to develop the facility. Eneabba will be Australia’s first fully integrated rare earth refinery.

One advantage that the company holds over other rare-earth producers is that its rare-earths are co-products of its mineral sands, and thus, have a significantly lower mining footprint than many other producers. This could drive up the demand of its REEs.

Additionally, the company has other projects, including the Balranald deposit in South Australia, the Wimmera deposit in New South Wales and the Jacinth-Ambrosia operation in South Australia (the largest zircon mine in the world).

Iluka Resources shares are down over 19% this year, but the average one-year price target of analysts covering the stock is AUD $5.03, representing a 21% upside.

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4. Arafura Rare Earths (ARU): Seeking to supply 4% of rare-earth metals used in permanent magnets

Arafura Rare Earths (ASX:ARU) is the only owner of the rare earths Nolans Project, which is also the company’s flagship asset. The Nolans Project is a globally significant and strategic neodymium and praseodymium project

Arafura plans to mine and process the ore into rare earth oxide at the Nolans Project. The company already has agreements to supply rare earth oxides to Hyundai and Kia, while it’s negotiating with GE Renewable Energy for a sustainable supply chain.

The construction of the Nolans Project started last year and the company estimates it will take two years to complete. Once completed, Arafura will become a key supplier of critical minerals to the high-performance neodymium permanent magnet market.

The company estimates the Nolans project will supply about 4% of global NdPr oxide demand. 

Additionally, the company’s Aileron-Reynolds (also in the Northern Territory) project is in exploration status. The company’s shares have soared 45% this year on expectation China’s restrictions on some rare-earth minerals’ exports will benefit Australian producers.

Though the company isn’t profitable, we don’t see any strong correlation between its profit and share price, suggesting investors are factoring in the potential success of Arafura’s projects.

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5. Lindian Resources (LIN): Company deems studies at Malawi rare-earth project ‘astonishing’

Lindian Resources (ASX:LIN) deals in the exploration of mineral properties in Australia, Tanzania, Guinea, and Malawi. The Kangankunde Rare Earths Project in Malawi, the company’s flagship asset, is one of the significant rare earth resources in terms of size, grade, and quality.

Lindian Resources recently completed studies at the Kangankunde Project and is currently analyzing the results to come up with the final plan. The company announced the results of the initial deep diamond drill hole in July. It said the findings as ‘astonishing’ and ‘stunning.’ The company is on track to start production at the site by 2027 and has recently lined up several financing offers.

Additionally, the company has many other projects, including the Gaoual Bauxite project, the Woula Bauxite project, the Lelouma Bauxite project located in Guinea, and the Lushoto and Pare Bauxite projects in Tanzania.

Lindian Resources shares are gained 38% so far this year, and 1,000% over the past five years. Though the company has posted a net loss for the latest financial year, analysts expect it to break even this year and post a profit in 2026.

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6. Hastings Technology (HAS): Developing processing plant to produce a mixed rare earth carbonate

Hastings Technology (ASX:HAS) deals in the exploration and development of rare earth deposits, mainly neodymium and praseodymium, in Australia. The company has the Yangibana Rare Earths Project in the Gascoyne region of Western Australia.

Hastings Technology plans to develop the Yangibana Project in multiple stages, with construction starting this year and the first sale in 2025. The company says this rare earth project has the potential to become a globally significant producer of NdPr, a critical component in making permanent magnets.

Additionally, the company has the Brockman Project in Onslow for rare earths and other metals. The company also has plans to develop a processing plant in Onslow to produce a mixed rare earth carbonate.

Hastings Technology posted a loss for the latest financial year, but analysts expect the company to break even this year and post a profit in 2026. Its shares have sipped 3% this year, but are up almost 33% in the past six months. This suggests investors have faith in the company’s latest project plans.

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7. American Rare Earths (ARR): Australian and US-based projects for rare earths, Zircon

American Rare Earths (ASX:ARR) deals in the exploration and development of mineral resources, such as rare earth, scandium, and cobalt deposits, in Australia and the United States. Presently, the company owns three early-stage rare earth assets in the US, including the 100% owned Halleck Creek Project in Wyoming. The project has an estimated 1.43 billion tonnes of rare earth, and the company is carrying out further studies to get detailed information about the site.

Additionally, the State of Wyoming has approved the mining company’s application for a grant of AU$10.7 million (or US$7.1 million) as part of a Matching Funds arrangement. 

The Halleck Creek Project is also important because of its significant Zircon co-product potential alongside REEs. Zircon’s supply is currently limited, but its demand is high among growth industries, such as nuclear energy.

American Rare Earths’ La Paz Project in Arizona is also a potential rare earths site, and many believe it to be the largest deposit in the country. It also has a Searchlight Project in Nevada, which is very close to the exiting Mountain Pass Rare Earths Mine.

Since American Rare Earths has projects in the US, it will benefit from the recent Chinese export restrictions on REEs and US demand for these minerals.

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Year-to-date performance of the best Australian rare-earth stocks

Ticker	Company	Performance (YTD)	Invest
LYC	Lynas Rare Earth	14.4%	Buy with eToro
NTU	Northern Minerals	40%	Buy with eToro
ILU	Iluka Resources	-19.6%	Buy with eToro
ARU	Arafura Rare Earths	45%	Buy with eToro
LIN	Lindian Resources	37.5%	Buy with eToro
HAS	Hastings Technology	-3%	Buy with eToro
ARR	American Rare Earths	-11.7%	Buy with eToro

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What are Australian rare-earth stocks?

Australian rare-earth stocks trade on the Australian Securities Exchange (ASX) and belong to companies involved in rare earth elements’ exploration, mining, production, refining, or distribution.

Rare earth elements are a set of heavy metals that have several useful applications in the modern world, including in high-tech consumer and industrial devices and many other applications in the defense industry.

Though these elements are called rare earths, they are actually not so rare. They have earned the name because of their diffuse presence in the earth’s crust, which leads to mining challenges.

Being a resource-rich economy, Australia is home to many rare-earth stocks, providing investors with plenty of opportunities to gain exposure to rare-earth metals.

Why invest in ASX-listed rare-earth stocks?

Production of rare earth elements is concentrated in a few countries, resulting in limited supply.

On the other hand, the demand for REEs is estimated to grow significantly as more economies become increasingly technology-driven and green-focused.

Limited supply and growing demand provide the perfect opportunity for investors looking to gain exposure to rare-earth stocks. If patient, they could make significant returns. They can invest in quality ASX-listed rare-earth stocks, which stand to benefit from the rising prices of REEs.

ASX rare-earth stocks are good for both risk-averse and high-risk investors. The volatility in rare earth mining stocks will appeal to investors with high risk tolerance. Risk-averse investors, though, need patience and a long-term outlook to gain from REEs.

What are the biggest rare-earth companies in Australia?

The following are the biggest rare-earth companies in Australia:

Pros and cons of investing in Australian rare-earth stocks

Rare-earth stocks are a good investment option for day traders and patient investors, but they are not without risks. It’s crucial for investors to properly understand those risks before investing in ASX rare earth stocks.

Some of the pros of buying Australian rare-earth stocks

• Diversification: This is the biggest benefit of investing in rare-earth stocks. Australian rare-earth stocks are not closely linked to traditional industries, such as manufacturing and energy. Therefore, they offer significant diversification benefits.
• Growing demand: The demand for REEs has gone up significantly and analysts expect it to grow manifold in the foreseeable future as more countries push for greener tech. Growing demand for REEs bodes well for ASX rare-earth stocks, creating potential investment opportunities for investors.
• Innovation: Tech plays a crucial role in the rare-earth sector, with rare-earth companies constantly developing new technologies to refine processes. This new tech drives the revenue of rare-earth stocks.
• High returns: The growing demand for REEs could mean a high return for investors in ASX rare-earth stocks. Since REEs have limited supply and their growing demand, it could result in significant returns for investors. 

Some of the cons of buying Australian rare-earth stocks

• Volatility: Rare-earth stocks are volatile, and investing in them is risky. Though volatility can also work in investors’ favor, a sudden change in market conditions could result in significant losses.
• Environmental impact: Mining and production of rare-earth metals can have an adverse impact on the environment in the form of water pollution and toxic waste. Such risks could result in regulatory issues and may lead to delay or even stoppage of the project.
• Concentrated supply: The REEs supply is limited to a few countries, and thus, any unrest in those places could result in supply chain disruptions. The concentration of supply could also lead to price manipulation.
• Massive investments: Mining and production of rare-earth metals require massive investment from companies. If the project faces delays or the result is not as expected, it may result in financial issues for the rare-earth stocks.

Methodology: How we chose the best Australian rare-earth stocks

Though Australia is home to many rare-earth stocks, not all represent upside potential for investors. Thus, to select the best ASX-listed rare-earth stocks, we analyzed them using several parameters that are of interest to retail investors.

Some of the factors that we considered to shortlist the best ASX rare-earth stocks are:

• Quality of projects: We considered the number of projects that a rare-earth company is currently handling. More importantly, we considered the quality of those projects, such as ease of mining, volume of deposits, environmental constraints, and more.
• Cash burn rate: Mining and production of rare-earth elements is capital intensive and requires a good amount of money. We considered the amount of cash the company currently has on its balance sheet and its cash burn rate to shortlist the best rare-earth stocks.
• Past performance: To shortlist the stocks, we took into account their historical performance, primarily examining their past five-year return. The stocks that have given consistent returns over the past five years ranked high on our list of top ASX rare-earth stocks.
• Fundamentals: We focused heavily on the fundamentals of rare-earth companies to come up with the best rare-earth stocks in Australia. Stocks with sound financials and robust balance sheets scored high on our list.
• Tech prowess: Efficient mining and production of rare-earth elements require companies to have state-of-the-art technology. So, we preferred companies that have adopted the latest technological developments in the field and/or have partnerships with leading tech companies.
• Dividend: Though we did consider companies that pay no dividend or don’t regularly pay dividends, We have goiven preference to stocks with regular dividends and higher payout ratio. A company that regularly pays dividends is considered to be more investor-friendly.

Australian rare-earth stocks FAQs