The speculation that Australia could soon implement a price floor mechanism led to a rally in ASX rare earth stocks. The following stocks offer a good opportunity to invest as, in view of the demand looking strong, the world is eager to secure rare earth from sources outside China.
Best australian rare earth stocks
Lynas Rare Earths Ltd (ASX: LYC)
Iluka Resources Ltd (ASX:ILU)
Arafura Rare Earths ltd (ASX:ARU)
Northern Minerals Ltd (ASX:NTU)
Lynas Rare Earths Ltd (ASX: LYC)
reported FY25 sales revenue of $556.5m, up from $463.3m in FY24, driven by higher NdPr output of 6,558t (FY24: 5,655t) and stronger average selling prices at $50.6/kg REO. However, with EBITDA at $101.2m, NPAT decreased swiftly to $8m (FY24: $84.5m). 10,462 tonnes of REO were produced overall, but capital investment reached $430.8 million and cash reserves fell to $166.5 million. This shows there is strong revenue growth from higher NdPr output and prices, but lower profitability and reduced cash reserves. In FY25, Lynas accomplished significant milestones, including ramping up the Kalgoorlie facility and completing the Mt Weld expansion, all while increasing capacity in Malaysia. Through hybrid power, solar projects, and a $30 million water recycling plant, the company advanced sustainability and has produced its first separated heavy rare earth oxides, and has published an updated mine life of more than 20 years.
Iluka Resources Ltd (ASX:ILU)
reported half-year 2025 NPAT of $92m, down 31% from $134m in HY24, with underlying mineral sands EBITDA at $218m, a 13% decline. EBIT fell 27% to $148 million, while group EBITDA fell 12% to $233 million. Operating cash flow dropped 39% to $115 million. Z/R/SR production increased 23% to 280kt, yet mineral sands revenue fell 8% to $558m. Despite a 19% improvement in unit cash costs to $1,138/t, free cash flow remained negative at -$361m, demonstrating the continued pressure on investments. In H1 2025, Iluka made significant strides on strategic projects. The Eneabba rare earths refinery, which was supported by $1 billion in committed capital and equipment which was on its way to installation, moved forward on schedule. At Balranald, development was facilitated by $196 million in capital expenditures, which allowed commissioning to proceed on schedule for H2 2025 and mining to start in Q4.
Arafura Rare Earths ltd (ASX:ARU)
advanced its equity funding strategy for the Nolans Project during the June 2025 quarter which has engaging potential cornerstone investors aligned with its strategic vision. The project is backed by an active sales program in Germany intended for offtake partners which had entered the appraisal phase with the German Raw Materials Fund for a possible equity investment of up to €100m (A$175m). The geopolitical momentum associated with rare earths is solidifying Nolans' standing as a top project that is prepared for construction. Arafura ended June with a cash balance of A$27 million, down from A$37 million in March and the new pricing benchmarks were set in the U.S. and Europe after the quarter.
Northern Minerals Ltd (ASX:NTU)
had delivered a strong June 2025 quarter, maintaining a TRIFR of 0.0 with no LTIs and securing early construction approvals. In order to support the exploration of the Northern Territory, heritage surveys were completed together with the Central Land Council. China's export restrictions helped the Browns Range Heavy Rare Earths Project by restricting global supply and enhancing Australia's crucial mineral diversification role. To assist the industry even more, the Federal Government approved the G7 Action Plan and raised its Critical Minerals Strategic Reserve. Along with exploration successes at Dazzler, Gambit, and Ripcord, NTU had finished its optimization programs which has reduced capital costs, and advanced its DFS for release in Q3 CY2025.
(Source: Company Announcement)
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
