China’s Control of Rare Earths Supply
China has long dominated the global rare earths market. Its control is supported by strategic policies, low-cost labour, and export restrictions.
In April 2024, China added seven rare earths, including dysprosium, terbium, and scandium, to its export control list. This was a direct response to US tariffs and highlighted growing trade tensions.
The list forms part of China’s broader export control system, which covers dual-use items, military products, nuclear materials, and other sensitive technologies.
With global demand for rare earths expected to double by 2050, Australia is stepping forward to develop independent, ex-China supply chains.
Victory Metals and the North Stanmore Project
Victory Metals is leading the charge with its North Stanmore heavy rare earths project in Western Australia. The deposit is one of the most advanced clay-hosted projects globally.
“Other rare earths projects in Australia typically comprise hard rock or mineral sands,” CEO Brendan Clark told Australian Mining. “These projects require a lot of capital because the processing phase is complex and resource-intensive.”
Clark said North Stanmore is different:
“With North Stanmore, mother nature has done all the hard work for us, dating back around 45 million years ago. The clay-hosted mineralisation system has broken down naturally over time, providing easier access to valuable rare earth elements.”
The project bypasses traditional mining and uses a low-cost leaching process with no additional processing stages.
“We’ve got high ratios of heavy rare earths, which are in high demand and provide strength to the magnets used in renewable batteries,” Clark said. “Most of these rare earths come from clay-hosted projects in China, making our North Stanmore project an important diversifier globally.”
Strategic Location and Global Partnerships
North Stanmore is located near major infrastructure, reducing development costs.
“The Great Northern highway is the major arterial road connecting the Pilbara region to the Ports of Fremantle and Geraldton,” Clark said. “We’re also located near a regional airport, enabling us to gain easy access to a fly-in, fly-out workforce.”
While mining is critical, Clark acknowledged that processing remains a major challenge.
“Victory wants to provide a non-Chinese source of rare earths across the supply chain,” he said. “We’re looking to do that through separation options in France, Japan and the US. My long-term vision is to create our own dysprosium and terbium product in WA. I believe it’s possible.”
In December 2024, Victory signed a memorandum of understanding with Sumitomo Corporation. The agreement aims for Victory to supply 30 per cent of its annual MREC production to the Japanese company.
“Our next phase with Sumitomo is to enter into a binding offtake agreement … and use that opportunity to fund North Stanmore and provide a pathway to development,” Clark said.
Enova Mining Expands in Brazil
Enova Mining is another ASX-listed company making strides in rare earths. Led by CEO Eric Vesel, the company is developing projects across Brazil’s Minas Gerais and São Paulo regions.
“Our team brings a unique combination of multi-disciplinary experience and capabilities necessary to take exploration properties to production,” Vesel told Australian Mining.
Enova controls around 80,000 hectares of tenements, including the Coda rare earths project.
“Our 2024 maiden drilling program (at Coda) intersected thick horizons of saprolite-hosted mineralisation over an area exceeding 40km², with elevated grades of titanium, rare earths, niobium and scandium,” Vesel said.
The company’s East Salinas project has also delivered promising results, returning high TREO (total rare earth oxide) grades across multiple targets.
“While early stage, the simplicity of East Salinas’ mineralogy and potential for gravity separation could allow us to move quickly into concentrate production,” Vesel said.
Partnerships and Downstream Processing
Enova is leveraging strategic partnerships to secure downstream refining access. Its chairman, Dato’ Sia Hok Kiang, also leads Malaco Mining, which built a pilot separation plant in Malaysia in 2024.
“Malaco recently signed an MoU with POSCO of Korea and Carester of France for downstream rare earths processing in Perak,” Vesel said. “The company’s separation facilities and modular IAC extraction technology is unique with several worldwide patents. Enova is in the box seat to use this technology.”
Despite progress, Vesel warned that global supply chains still face significant challenges.
“Outside China, very few companies can separate rare earths to high purity,” he said. “Even those that do often send their material back to China for final processing. China has suppressed global prices to maintain control of the market, but these prices aren’t reflective of what end-users pay at volume. The only way to break this dependence is to build the full supply chain from mining through to separation.”
Building a Non-Chinese Rare Earths Supply Chain
Victory Metals and Enova Mining are both positioned to help diversify the global rare earths supply chain. With access to world-class deposits, strategic infrastructure, and international partnerships, both companies are playing a key role in reducing reliance on China and securing critical minerals for the future.