Rainbow Rare Earths (AIM: RBW) has outlined the strong economic potential of its Uberaba project in Brazil while securing a strategic partnership with The Mosaic Company, in a move that underscores growing momentum behind non-Chinese rare earth supply chains. A preliminary economic assessment indicated a post-tax net present value of around $916mn and an internal rate of return of 45%, with payback expected in under two years, highlighting the project’s low-cost, high-margin profile.

Alongside the study, the companies have agreed to advance the project through a prefeasibility phase with a view to forming a joint venture, in which Mosaic would take a majority stake, subject to further work. The project, which involves extracting rare earth elements from phosphogypsum waste, reflects a broader industry push to secure alternative sources of critical minerals used in electric vehicles and renewable technologies. Taken together, the announcement positions Rainbow to replicate its South African model at scale, while signalling increasing industrial backing for Western-aligned rare earth development.

We caught up with CEO George Bennett at the 2024 Mining Indaba conference in Cape Town. He provided an update on Rainbow’s operations, but also told us about the many uses of rare earths and why they are so important in the global energy transition.