Top ASX Companies specializing in Rare Earth Elements
Rare Earths Stocks on the ASX: Lynas Leads the Pack Amid Increased Geopolitical Focus
The rare earths sector on the Australian Securities Exchange (ASX) is experiencing a surge in interest, particularly due to increased geopolitical focus, particularly from the United States, aimed at securing supply chains. This trend has boosted the shares of key players, most notably Lynas Rare Earths (ASX:LYC) and Iluka Resources (ASX:ILU).
As of mid-2025, Lynas Rare Earths (LYC) is the clear leader among the largest ASX-listed rare earths stocks by market cap, showing strong market performance and a positive future outlook driven by geopolitical support and solid fundamentals. Lynas' share price has surged about 125% year-to-date in 2025, reaching near its 52-week high around AUD 14.50, reflecting strong investor confidence amid rising rare earth prices and strategic importance of critical minerals.
Despite a recent decline in revenue and earnings in 2024 (revenue down ~37%, earnings down ~73%), Lynas benefits from rising US government interest and investment in securing rare earth supplies, boosting its stock and sector sentiment. Valuation models, such as discounted cash flow analyses, indicate Lynas is currently undervalued by approximately 25%, suggesting further upside potential.
Lynas' flagship project is the Lynas Malaysia facility, which commenced first production of the heavy rare earth dysprosium in May 2025. During its fourth fiscal quarter of 2025, Lynas reported neodymium and praseodymium (NdPr) production of 2,080 tonnes. The company's Mount Weld asset in Western Australia is one of the highest-grade rare earths mines in the world.
Iluka Resources (ILU) has also experienced share price gains recently following US strategic moves in the rare earth sector, though it remains more diversified beyond rare earths and not as focused purely on this space as Lynas. Iluka’s share movement has been positive but less pronounced than Lynas.
Smaller companies in the sector, such as Brazilian Rare Earths (ASX:BRE), Arafura Rare Earths (ASX:ARU), and Northern Minerals (ASX:NTU), have less prominent profiles and are generally at earlier development or smaller production stages. Publicly available recent data on their market caps or near-term outlook is limited, suggesting these stocks remain higher-risk, speculative plays often dependent on advancing mining projects and securing off-take agreements.
For instance, Northern Minerals is targeting first production at Browns Range in Q4 2027. Arafura is advancing its Nolans NdPr project in Australia's Northern Territory and has signed several offtake agreements, including one with Siemens Gamesa Renewable Energy. Arafura received a AU$200 million investment commitment from Australia's National Reconstruction Fund in 2025. First production at the refinery is expected in 2027.
Brazilian Rare Earths (ASX:BRE) has a market cap of AU$568.72 million and a share price of AU$2.20. The company's Rocha da Rocha project in Brazil is highly prospective for both heavy and light rare earths. Brazilian Rare Earths' current resource estimate for Rocha da Rocha stands at 510 million tonnes at 1,513 parts per million TREO.
In summary, the rare earths sector on the ASX is benefiting from increased geopolitical focus, particularly US efforts to secure supply chains, which has boosted Lynas and Iluka most notably. Smaller companies remain more speculative with longer-term development risks. Lynas is the flagship and most valuable rare earths stock on the ASX, strongly positioned for further gains amid increasing demand for critical minerals. For specific updates on smaller caps like BRE, ARU, or NTU, additional detailed company reports or market data would be needed beyond this summary.
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