Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) shares climbed 5% to 19.9p after the company said a sharp jump in European yttrium oxide prices is set to deliver a meaningful lift to the economics of its Phalaborwa project in South Africa.
The company noted that yttrium, now included in its SEG+ mixed rare-earth product, has seen extreme price moves this year.
Data from Argus Media shows prices surging from roughly $6 per kilogram in January to between $220 and $320 per kilogram after China tightened export controls in April 2025.
Yttrium is used in high-tech applications ranging from lasers to defence systems, making supply disruptions particularly sensitive.
George Bennett, the chief executive, said the spike “highlighted the fragility of global dependence on China for strategic minerals” and would benefit Phalaborwa’s economics because “there will be no extra cost to produce it as part of our proposed SEG+ product”.
Rainbow expects the project to generate around 213 tonnes of yttrium oxide annually. At the lower end of current prices, the increase could add about $30 million to yearly earnings before interest, tax, depreciation and amortisation.