Do rare earth materials play an important role in the Australian Industry?

Team Veye | 08-Aug-2021 important role in the Australian Industry

China has invariably been using its near monopoly of the rare earths as trade leverage whenever tensions arise between the US and China. As this sector is very important to drive economies, it is now becoming a global priority to find new sources of rare earths, where Australia could play a key role in reducing this dominance

Australia and many other countries have been giving serious thought to reducing this reliance on China. Although Australia is mainly known for its rich deposits of aluminium ore, iron ore, lithium, gold, lead, and diamonds that have been highly commercialised over the years, experts believe that the country also holds a good amount of rare earth deposits.

Experts also say that government support is needed to develop alternative supplies in Australia. In this context, the Australian government has already released a grant to Lynas for the Modern Manufacturing Initiative. The grant will enable Lynas to commercialise an industry-first Rare Earth carbonate refining process. Lynas is the only scale producer of separated Rare Earths outside China

With more than 1,000 tonnes of rare earth deposits in South Australia alone, the country could prove to be one of the world’s leading rare earths producers outside of China.

Rare earths are a group of 17 metals which cluster near the bottom of the periodic table and play a vital role in several industries. Each has unique properties that are vital for a range of commercial and defence technologies, including batteries, high-powered magnets and electronic equipment. The usage in Consumer electronics can be highlighted by the fact that an iPhone contains eight different rare-earth minerals.

Demand for electric vehicles has accelerated. International Energy Agency (IEA) reported a 41% growth in EV registrations in 2020 vs. 2019. Global wind capacity additions increased by over 90% in 2020 to 114 GW. 2021 additions are expected to be approx. 80 GW (IEA).

Australia, with its stable investment environment, is well positioned to benefit from such an emerging scenario.


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, 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.

veye logo

Grab Your Free Report On 5 ASX Dividend Stocks To Buy In 2024