ASX Rare Earth Stocks to Surge with Tightened Supply Chains

Australian rare earth minerals stocks are gaining attention as supply chains face pressure with companies pushing ahead across exploration, mining and refining stages.

Iluka Resources Limited (ASX: ILU)

continued to advance its rare earths strategy while navigating softer mineral sands markets. In 1H25 mineral sands revenue fell 8% to A$558 million with NPAT down 31% to A$92 million and operating cash flow at A$115 million reflecting weaker zircon and synthetic rutile prices. However, unit cash costs fell 19% to A$1,138/t, supported by higher zircon-in-concentrate output. Net debt stood at A$502 million.Major projects are progressing, with the Balranald mine on track for commissioning in H2 2025 and construction at the Eneabba rare earths refinery advancing toward first production in 2026. The Wimmera project DFS remains underway for completion in mid 2026 positioning Iluka as a key player in this space.

Lynas Rare Earths Limited (ASX: LYC)

continued to strengthen its position in FY25 with good progress on its projects and the start of its “Towards 2030” plan. The company finished expanding its Mt Weld site which increased NdPr capacity to 12ktpa and also started ramping up the new Kalgoorlie processing plant which is the first of this type in Australia. In Malaysia the operations delivered record NdPr production of 2,080t in June with the overall capacity lifted to 10.5ktpa. On the financial side sales revenue grew 20% to A$556.5 million but NPAT dropped to A$8.0 million and EBITDA came down to A$101.2 million.The company also raised A$750 million through a placement to support growth. For the future the strategy includes adding more resources at Mt Weld, growing heavy rare earth separation in Malaysia and joining the ex-China magnet supply chain with a planned 3,000tpa magnet plant in partnership with JS Link.

Arafura Rare Earths Limited (ASX: ARU)

made significant progress in FY25 as it advanced the flagship Nolans Project in the Northern Territory toward a final investment decision. The company has secured over US$1 billion in debt funding commitments from export credit agencies and banks plus a A$200 million cornerstone investment from Australia’s National Reconstruction Fund. Arafura also signed offtake agreements, including a 520tpa NdPr oxide deal with Siemens Gamesa, underscoring demand from the clean energy sector. Financially the group reported a net loss of A$19.2 million in FY25 which is a sharp improvement from the A$101.0 million loss in FY24. Cash at year end was A$27.2 million. Looking ahead the Nolans Project remains on track for construction readiness with production targeted in 2027.

Lindian Resources Limited (ASX: LIN)

is working on its main Kangankunde Rare Earths Project in Malawi. On 24 September the company brought in DRA Pacific to handle the Stage 2 Expansion Study which is aiming to lift production to between 50,000 and 100,000 tonnes per year of concentrate. This comes after Stage 1 got its final approval in August. In the second half of 2025 more contracts are expected for mining, design and power infrastructure while the company is also talking with lenders and offtake partners about funding. As of June it had about A$3.5 million in cash and Operating cash outflow was A$1.1 million for the quarter and A$6.1 million for the year so far mainly for project development and corporate expenses. The first production from Stage 1 is expected in 2026 while planning for Stage 2 is happening at the same time. 

(Source: Company Announcements)