Rainbow Rare Earths has enjoyed an uptick in its share price this year, as it progresses its rare earth development projects.
Western efforts to secure supplies of rare earth elements (REEs) have intensified following China’s decision earlier this year to tighten export controls on the critical minerals. The move, first introduced in April and expanded in October 2025, has underscored the geopolitical and economic vulnerability of global supply chains dependent on Beijing.
Amid growing urgency to diversify sourcing, Rainbow Rare Earths has emerged as one of the companies leading the charge. Its Phalaborwa project in South Africa is being positioned as a near-term, strategic supplier of both light and heavy REEs – key components in green energy technologies, electric vehicles, and defence systems.
The project has drawn strong backing from institutional and strategic investors. The US International Development Finance Corporation (DFC), an indirect shareholder through TechMet Limited, has pledged $50mn in project equity funding. In addition, Ecora Resources, a London-listed royalty and streaming company, has selected Phalaborwa as its first investment in the rare earths sector.
Rainbow operates one of Africa’s most advanced mineral laboratories in Johannesburg, where the company is refining a process to extract REEs from phosphogypsum, a by-product of fertiliser production. The approach, which reuses industrial waste, offers environmental and social advantages compared to traditional mining operations.
Unlike conventional rare earth projects, Phalaborwa involves chemical processing rather than mining, placing it at the lower end of the global cost curve. The company expects it to rank among the highest-margin REE developments currently underway.
Recent technical milestones include the production of a high-purity mixed rare earth product (MREP) exceeding industry benchmarks. Rainbow is now assessing the most efficient route for separation, with final outputs expected to include NdPr oxide, crucial for permanent magnets, and a SEG+ product containing medium and heavy rare earths.
A pilot-scale plant is planned to validate the updated processing parameters and demonstrate expected capital and operational cost savings. The Definitive Feasibility Study (DFS) is due for completion in 2026, with project permitting and financing processes set to proceed in parallel, potentially enabling construction to begin in 2027.
Beyond South Africa, Rainbow is expanding its model. Its Uberaba project in Brazil, developed in partnership with The Mosaic Company, aims to replicate Phalaborwa’s phosphogypsum-based approach on a potentially larger scale. An Economic Assessment (EA) is underway.
The company is also exploring partnerships in Saudi Arabia, Morocco and Canada, among other jurisdictions, as it seeks to establish a scalable and sustainable business based on its proprietary technology.
Rainbow has placed responsible production at the centre of its strategy, embedding environmental, social and governance (ESG) standards across its operations as it works to position itself as a cornerstone of the West’s rare earth supply chain.
Below is an overview of Rainbow’s operations with CEO George Robinson. He also told outlines the many uses of rare earths and why they are so important in the global energy transition and defence systems