Highlights

  • Phalaborwa project advances as a key near-term source of critical rare earths.
  • DFC commits USD 50 million in project equity funding through TechMet.
  • Uberaba project in Brazil progresses toward Economic Assessment with partner Mosaic.

Rainbow Rare Earths Limited (LSE:RBW) noted that rare earth elements (REEs) remain vital to economic resilience and national security. Following China’s export controls in April 2025 and proposed further restrictions in October, global efforts have intensified to secure responsible and independent REE supply chains.

Strategic Progress at Phalaborwa

Rainbow’s flagship Phalaborwa project in South Africa continues to gain recognition as a near-term and strategic source of both light and heavy rare earth elements. The project benefits from backing by the United States International Development Finance Corporation (DFC), which holds an indirect stake through TechMet Limited and has committed USD 50 million in project equity funding. Ecora Resources PLC also supports the project through its first royalty in the REE sector.

The Johannesburg-based laboratory, among the most advanced mineral analysis facilities in Africa, is refining the process to extract REE from phosphogypsum. This chemical processing operation eliminates the need for mining, hauling, or stockpiling, placing Phalaborwa at the lower end of the global cost curve.

Technical progress includes production of a high-purity mixed rare earth product (MREP) exceeding industry standards. Rainbow is currently evaluating the optimal separation route, with final products expected to include separated NdPr oxide and a SEG+ product containing medium and heavy REEs.

The company plans to operate a pilot-scale plant to validate the updated flowsheet and demonstrate expected capital and operating cost efficiencies. The Definitive Feasibility Study (DFS) is targeted for completion in 2026, with permitting and project financing processes expected to proceed in parallel to enable construction in 2027.

Advancing the Uberaba Project in Brazil

In Brazil, the Uberaba project presents an opportunity to replicate the Phalaborwa model at a potentially larger scale. Rainbow, in collaboration with its partner the Mosaic Company, is moving toward completing an Economic Assessment (EA) for the project.

Broader Development and Sustainability Focus

Rainbow is exploring additional partnerships in Saudi Arabia, Morocco, and Canada to extend its phosphogypsum recovery technology globally. The company emphasized that responsible production and adherence to environmental, social, and governance (ESG) standards remain integral to its operations and long-term strategy.

Share Performance

The company shares are currently trading at GBX 17.00 down by 10.53% from its previous close of GBX 19.00.