UK Rare Earth Strategy – Intensified its Focus on Building a Domestic Supply Chain

This report is an updated version of the report published on 15 October 2025 at 08:39 AM GMT+1.

Section 1.0. UK Rare Earth Metals Sector Landscape, Trends & SWOT Analysis

The rare earth metals sector encompasses mining, processing, refining, magnet & battery components, recycling, and downstream applications in energy, aerospace, automotive, electronics, and defence. Its strategic importance gives it resilience during macro stress—continuing supply to clean-tech, defence, and infrastructure. The sector drives innovation and investment when economic cycles rebound, while geopolitical supply control, environmental constraints, and capital intensity remain key risks.

Kalkine’s Sector Report covers the Sector Landscape, Trends & SWOT Analysis, Risks, Recent Business Updates along with the Valuation, Target Price, and Recommendation on the stock.

Section 2.0. Sector Risks & Opportunities

The UK's rare earth sector is gaining strategic importance, capitalizing on world-class R&D in recycling and separation to build a resilient supply chain. Government backing and cross-sector collaboration are fostering a conducive environment for growth. This focus on innovation and sustainability aims to position the UK as a competitive supplier of high-value rare earth products, crucial for clean energy and defence technologies. The goal is to reduce import dependency and secure critical materials for national security and industrial resilience.

Section1: Company Overview

Pensana PLC (LSE: PRE) is an LSE listed & United Kingdom-based rare earth exploration, mining and processing company. The Company’s flagship development assets are the Longonjo Neodymium and Praseodymium (NdPr) Project and the Coola Exploration Project in Angola alongside the Saltend rare earth processing hub in the United Kingdom.

Section2:  Financial Highlights – FY25

The stock has witnessed an upside of ~17.86% and of ~121.92% over the 1 week and 3 months respectively. It is trading above the average of 52-week high price of GBX 174.50 and 52-week low price of GBX 16.00, providing an opportunity to ride the trend.

One-Year Technical Price Chart (as of October 15, 2025). Source: TradingView, Analysis: Kalkine Group

Section4: Company Overview

Rainbow Rare Earths Ltd (LSE: RBW) is an LSE listed and Guernsey-based mining company. The Company’s principal activity is the development of a rare earth minerals project in South Africa and the opportunity to utilize the associated processing technology at other global rare earth opportunities, including but not limited to opportunities in Brazil.

Section5:  Financial Highlights – H1 FY25

The stock has witnessed an upside of ~19.48% and of ~70.37% over the 1 week and 3 months respectively. It is trading above the average of 52-week high price of GBX 24.50 and 52-week low price of GBX 9.00, providing an opportunity to ride the trend.

One-Year Technical Price Chart (as of October 15, 2025). Source: TradingView, Analysis: Kalkine Group

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 15 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/ or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.