Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) CEO George Bennett has made it clear: now is the time to seize the massive opportunity in rare earth elements, particularly as global tensions and trade disputes make an independent supply chain more urgent than ever.
"The increasingly fraught nature of geopolitical relations globally has demonstrated that the West and aligned territories must act to establish an independent and diversified supply chain for the critical minerals to decarbonisation, defence and numerous other strategic industries," Bennett said in commentary alongside the company's interim results.
"REE can be considered those minerals most at risk for supply chain disruption, given that China controls approximately 75% of supply and over 90% of global processing capacity."
Rainbow is leading the charge in a new way - by extracting rare earth elements from phosphogypsum, a waste by-product of fertiliser production.
This approach is faster and cheaper than traditional mining, offering a lower-cost, responsible supply of the high-value rare earths needed for industries like wind turbines, electric vehicles, defence, and even robotics.
The company’s flagship project, Phalaborwa in South Africa, is shaping up to be one of the highest-margin rare earth projects outside of China.
An updated study in December valued Phalaborwa at $611 million, with the potential to pay for itself in under two years. The company is currently fine-tuning its processing techniques at its Johannesburg lab, where it aims to produce separated rare earth oxides at 99.5% purity.
Phalaborwa has also caught the attention of the US government, which sees it as a crucial, near-term source of critical minerals. A $50 million funding commitment has been secured from America's International Development Finance Corporation, reinforcing the project's strategic importance.
Meanwhile, Rainbow’s second project, Uberaba in Brazil, is progressing in partnership with fertiliser giant Mosaic, with similar potential to turn waste into valuable rare earth elements. The company is also scouting further global opportunities to expand its pioneering approach.
Bennett is optimistic about Rainbow’s future. "Rainbow's processing technology is unlocking a low-cost and responsible supply of magnet REE from phosphogypsum, starting with Phalaborwa in South Africa, followed by Uberaba in Brazil, and with other global opportunities longer-term," he said. "As such, Rainbow is in a strong position to contribute to an independent supply chain."
Financially, Rainbow ended the period with $6.1 million in cash, after raising $10 million through a royalty and share placement deal with Ecora Resources.
The company recorded a net loss of $2.1 million, largely due to financing costs. It invested $2 million in developing Phalaborwa, bringing the project's total balance sheet value to $17.1 million.
Looking ahead, Rainbow will need to secure at least $3.9 million in additional funding before June 2026, but management remains confident in its ability to raise the necessary capital.