The 6 Best Australian Rare-Earth Stocks to Buy in 2026

Australia is home to many globally renowned rare-earth companies, whose stocks trade on the Australian Stock Exchange (ASX). In this guide, we review the best Australian rare-earth stocks in the market.

The demand for rare-earth metals, essential components in technologies like electric vehicles, wind turbines, and solar panels, is estimated to rise as consumers and governments around the world become increasingly concerned about climate change.

Additionally, rare-earth metals have been subject to tariffs and retaliation in the trade war between the US and China. The fact that many countries, including the US, are keen to secure rare earths from sources outside of China also bodes well for ASX rare-earth stocks.

An in-depth look at these top Australian rare-earth stocks

Now, let’s see what makes each of these top ASX rare-earth stocks investable.

1. Lynas Rare Earths (LYC): The biggest rare-earth minerals producer outside China

Lynas (ASX:LYC) is the only significant producer of rare-earth materials outside of China. What makes Lynas special is that it mines rare-earth materials and refines them at its existing processing facilities.

The company’s Mount Weld mine in Western Australia is one of the biggest deposits of rare-earth metals, and its Malaysian processing plant is the largest in the sector.

The shares have gained more than 95% in the past 12 months. The company posted record revenue of AUD $200 million (US $130.09 million) in the first quarter of fiscal 2026, a 66% year-over-year increase. It said that sales receipts (actual cash inflows) were AUD $171.3 million, a 10.9% increase from the same period in the previous year.

Lynas said it plans to grow its customer base and negotiate higher prices as it boosts production. The company predicts that demand for rare earths will increase by high single digits to low double digits each year.

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2. Iluka Resources (ILU): Mineral sand producer capitalises on rare-earth byproducts

Iluka Resources (ASX:ILU) is primarily a mineral sands producer, and one of its by-products is a mineral containing a rare-earth element, called monazite. Its shares are up a little more than 13% in the past year.

The company has decades of mining experience and has been stockpiling monazite since 1990 with a plan to use it at its Eneabba rare earth refinery in Western Australia. Eneabba will be Australia’s first fully integrated rare-earth refinery for the production of rare earth oxides. The company also plans to start mining at its Balranald project by the end of the year.

The company presents a little more risk as it saw revenue slide 16% year over year in the third quarter, to AUD $699 million. It’s experiencing a decline in sales of mineral sands and their downstream products, particularly pigment, due to lower global economic activity.

It recently announced its intention to halt production at its Cataby mine in Western Australia for a period of one year. It’s also halting production at its Synthetic Rutile Kiln No. 2 for a six-month period.

One advantage that the company holds over other rare-earth producers is that its rare-earth products are co-products of its mineral sands, and thus, have a significantly lower mining footprint than many other producers. This could increase demand for its rare-earth products.

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3. Northern Minerals (NTU): Assessing the feasibility of the Browns Range project

Northern Minerals (ASX:NTU), with more than 2,750 square kilometers of licensed land across Western Australia and Northern Territory, has the potential to become the first major producer of dysprosium outside of China.

Browns Range in the north of Western Australia and Boulder Ridge in the Tanami region of the Northern Territory are Northern Minerals’ main projects.

Northern Minerals focuses on developing its Browns Range Project, which has high levels of rare earth elements dysprosium and terbium, in three stages. The company aims to commence production in the final quarter of 2027.

The company also has a strategic partnership with another Australian rare-earth company, Iluka Resources, for assistance in funding and processing of rare-earth elements (REEs.)

Shares of the company have risen 40% in the past year, driven by positive sentiment surrounding rare-earth stocks among investors. The company’s importance is evident from the Australian Foreign Investment Review Board’s decision in 2024 to deny a Chinese fund permission to raise its ownership in Northern Minerals on national interest grounds.

4. Arafura Rare Earths (ARU): Seeking to supply 4% of the rare-earth metals used in permanent magnets

Arafura Rare Earths (ASX:ARU) is the only owner of the rare earths Nolans Project, which is also the company’s flagship asset. The Nolans Project is a globally significant and strategic neodymium and praseodymium project

The construction of the Nolans Project started in 2024, and the company estimates it will take two years to complete. Once completed, Arafura will become a key supplier of critical minerals to the high-performance neodymium permanent magnet market.

Additionally, the company’s Aileron-Reynolds (also in the Northern Territory) project is in exploration status. Arafura shares have soared by more than 127% in the past year, on the expectation that China’s restrictions on the export of some rare-earth minerals will benefit Australian producers.

Though the company isn’t profitable, it saw 2025 full-year revenue climb 22% to $747 million.

5. Lindian Resources (LIN): Company goes all in on Malawi rare-earth project

Lindian Resources (ASX:LIN) deals in the exploration of mineral properties in Australia, Tanzania, Guinea, and Malawi.

The company has recently paid $10 million to acquire Rift Valley Resource Developments, the Malawian company that shared ownership with Lindian of the Kangankunde rare earth project, considered one of the world’s largest and highest-grade rare earth deposits currently under development.

The company is on track to commence production at the site by 2027 and has just hired South African-based engineering group Obsideo to build a stage-one processing plant at Kangankunde.

Lindian Resources shares have gained more than 356% in the past year. Although the company reported a net loss of AUD $9.22 million in fiscal 2025, the excitement surrounding the Kangankunde project has driven its shares higher.

6. American Rare Earths (ARR): Australian and US-based projects for rare earths, Zircon

American Rare Earths (ASX:ARR) explores and develops mineral resources, including rare earth, scandium, and cobalt deposits, in Australia and the United States. Presently, the company owns three early-stage rare earth assets in the US, including the 100% owned Halleck Creek Project in Wyoming. The project is estimated to contain 1.43 billion tonnes of rare earth, and the company is conducting further studies to gather detailed information about the site.

The Halleck Creek Project is also important because of its significant Zircon co-product potential alongside REEs. Zircon’s supply is limited, but its demand is high among growth industries, such as nuclear energy.

American Rare Earths’ La Paz Project in Arizona is also a potential rare earths site, and many believe it to be the largest deposit in the country. It also has a Searchlight Project in Nevada, which is very close to the existing Mountain Pass Rare Earths Mine.

Since American Rare Earths has projects in the US, it will benefit from the recent Chinese export restrictions on REEs and the US demand for these minerals. However, the stock, trading at under AUD $0.34 per share, is subject to significant volatility, and the company is not yet profitable. Its shares have gained more than 48% in the past.

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One-year performance of the best Australian rare-earth stocks

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What are Australian rare-earth stocks?

Australian rare-earth stocks trade on the Australian Securities Exchange (ASX) and belong to companies involved in rare earth elements’ exploration, mining, production, refining, or distribution.

Rare earth elements are a set of heavy metals that have several useful applications in the modern world, including in high-tech consumer and industrial devices, and many other applications in the defense industry.

Though these elements are called rare earths, they are actually not so rare. They have earned this name due to their widespread presence in the Earth’s crust, which presents mining challenges.

As a resource-rich economy, Australia is home to many rare-earth stocks, offering investors numerous opportunities to gain exposure to these valuable metals.

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Why invest in ASX-listed rare-earth stocks?

The production of rare earth elements is concentrated in a few countries, resulting in a limited global supply.

On the other hand, the demand for REEs is expected to grow significantly as more economies become increasingly technology-driven and environmentally focused.

The International Energy Agency expects the demand for rare earth elements (REEs) to increase by up to seven times by 2040. ASX-listed rare-earth stocks are well positioned to benefit from this increased demand.

This imbalance between limited supply and rising demand presents an attractive opportunity for investors. By gaining exposure to the best Australian rare earth stocks, investors can potentially benefit from future price increases and long-term sector growth—especially if they’re willing to hold through market cycles.

ASX rare-earth stocks are good for both risk-averse and high-risk investors. The volatility in rare earth mining stocks will appeal to investors with high risk tolerance. Risk-averse investors, though, need patience and a long-term outlook to gain from REEs.

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What’s the outlook in 2026 for these rare-earth stocks?

In 2026, the current shift in the rare earth market may be seen as a historic turning point. As intensifying US tariffs and stricter Chinese export controls disrupt global mineral flows, the technology and defense sectors are racing to overhaul their supply chains.

While this volatility introduces new risks, it also creates significant openings for rare earth mining companies and ETFs. While large players, such as Lynas, are well-placed to benefit, particularly if it is able to extend its capcity. Other companies, even ones not yet profitable, could benefit from speculation in the sector, but remain risky stocks.

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Alternative ways of investing in Australian rare-earth stocks

Beyond outright share ownership, there are other ways of getting exposure to the Australian rare-earth sector. One option is to invest in exchange-traded funds (ETFs) that allocate a portion of their investments to rare-earth companies.

Rare-earth ETFs

VanEck Rare Earth & Strategic Metals ETF (REMX): The ETF’s goal is to replicate the performance of the MVIS Global Rare Earth/Strategic Metals Index, therefore, it invests at least 80% of the fund’s total assets into securities included in this benchmark.

The index includes companies mostly engaged in producing, refining, and recycling rare earth and strategic metals and minerals. Its biggest holding is US-based MP Materials Corp (NYSE: MP) with a more than 10% share. However, it also holds shares in two Australian rare-earth companies, Lynas Rare Earths and Iluka Resources, which account for 7.9% and 5% of its investments, respectively.

REMX has an expense ratio of 0.58% and has returned 82% so far this year, with a 21% increase in the past five years.

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What are the biggest rare-earth companies in Australia?

The following are the biggest rare-earth companies in Australia:

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Pros and cons of investing in Australian rare-earth stocks

Rare-earth stocks are a viable investment option for both day traders and patient investors, but they are not without risk. It’s crucial for investors to properly understand those risks before investing in ASX rare earth stocks.

Some of the pros of buying Australian rare-earth stocks

Investing in rare-earth stocks offers unique advantages, many of which are comparable to the benefits seen with lithium stocks in Australia. Here are some key pros:

• Diversification: This is the biggest benefit of investing in rare-earth stocks. Australian rare-earth stocks are not closely linked to traditional industries, such as manufacturing and energy. Therefore, they offer significant diversification benefits.
• Growing demand: The demand for REEs has surged, and analysts expect it to continue increasing in the coming years as nations accelerate their transition to green technologies. This rising demand supports the growth of stocks in Australia, particularly in the rare-earth sector, creating promising investment opportunities.
• Innovation: Technology plays a crucial role in the rare-earth sector, with rare-earth companies continually developing new technologies to refine their processes. This new tech drives the revenue of rare-earth stocks.
• High returns: The growing demand for REEs could yield high returns for investors in ASX rare-earth stocks. Since REEs have a limited supply and their increasing demand, it could result in significant returns for investors. 

Some of the cons of buying Australian rare-earth stocks

• Volatility: Rare-earth stocks tend to be highly volatile, making them a risky investment. While price swings can sometimes benefit investors, sudden shifts in market conditions can lead to significant losses—unlike the typically more stable performance of Australian tech stocks and Australian gold stocks.
• Environmental impact: The mining and production of rare-earth metals can have a detrimental effect on the environment, resulting in water pollution and the generation of toxic waste. Such risks could result in regulatory issues and may lead to delay or even stoppage of the project.
• Concentrated supply: The REEs supply is limited to a few countries, and thus, any unrest in those places could result in supply chain disruptions. The concentration of supply could also lead to price manipulation.
• Massive investments: The mining and production of rare-earth metals require substantial investments from companies. If the project faces delays or the result is not as expected, it may result in financial issues for the rare-earth stocks.

Due to these risks, investors may want to balance their portfolios by also considering more stable opportunities like the best Australian dividend stocks, which typically offer consistent returns and lower volatility.

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Australian rare-earth stocks FAQs