Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) told investors that a surge in European yttrium oxide prices is expected to have a material positive impact on the economics of the Phalaborwa project.
The company said yttrium is now included in the project’s SEG+ mixed rare earth product.
According to Argus Media data cited by Rainbow, yttrium oxide prices have risen from about $6 per kilogram at the start of the year to between $220 and $320 per kilogram following Chinese export controls introduced in April 2025.
“The disruption and huge price increase for yttrium has once again highlighted the fragility of global dependence on China for strategic minerals, especially those like yttrium that are essential to high-tech and defence manufacturing," said chief executive George Bennett.
He added: “This price increase positively impacts annual estimated EBITDA for Phalaborwa as there will be no extra cost to produce it as part of our proposed SEG+ product.”
The company said Phalaborwa is expected to produce about 213 tonnes of yttrium oxide per year as part of its mixed rare earth output. It said the jump in prices could add about $30.00 million to the project’s annual EBITDA based on the lower end of current pricing.