ASX Rare Earth Stocks Make the Most of China’s Restrictions

With a fresh wave of multi billion dollar U.S – Australia backing for critical minerals, the rare earth sector is entering a new phase of rapid growth and these ASX miners are riding the surge, securing government support and major export deals. 

Arafura Rare Earths Limited (ASX: ARU)

keeps getting strong global support for its Nolans Rare Earths Project in Northern Territory which is one of the key projects in Australia’s critical minerals plan. 

On 21 October 2025, the company got conditional approval from Export Finance Australia (EFA) for an equity investment of up to US$100 million under the Critical Minerals Facility. The Export–Import Bank of the United States (US EXIM) also issued a Letter of Interest for up to US$300 million in funding under its Supply Chain Resiliency Initiative.

The latest Base Case pricing scenario assumes an average life-of-mine NdPr price of US$133 per kilogram and values the project with a net present value (NPV) of about US$1.73 billion, an internal rate of return of 17.2% and an average EBITDA of around US$460 million for a 38 year mine life.

The Nolans Project is expected to be Australia’s first fully integrated ore-to-oxide rare earth processing plant and is likely to start construction once a final investment decision is made in FY2026.

Northern Minerals Limited (ASX: NTU)

is moving steadily towards building its Browns Range Heavy Rare Earths Project in Western Australia which is known as one of the most advanced dysprosium and terbium rich projects outside China.

On 21 October 2025, NTU got non-binding Letters of Support from Export Finance Australia (EFA) and also a Letter of Interest from Export Import Bank of the United States (EXIM). These outlined possible project debt funding of upto US$230 million under the new Australia US Critical Minerals Agreement. This came after the company finished its Definitive Feasibility Study which confirmed that Browns Range can supply around 8% of the world’s current Dy/Tb demand with production expected to start by 2028 if funding goes as planned.

NTU reported a net loss of $27.4 million for the year but its cash reserves went up to $24.3 million from $8.3 million last year. 

With a long-term supply deal already signed with Iluka Resources, the Browns Range Project is set to play a key role in building a Western world supply chain for heavy rare earths used in clean energy and defence.

Brazilian Rare Earths Limited (ASX: BRE)

is moving ahead with developing one of the biggest new rare earth provinces in Bahia, Brazil. 
On 21 October 2025 it finished a $120 million placement at $4.68 per share to speed up the Monte Alto and Rocha da Rocha projects and push forward the timeline for its rare earth separation refinery at Camacari,Bahia.

Earlier in October they had also signed a 10 year heavy rare earth offtake deal with Carester SAS. Under this deal Carester will buy up to 150 tonnes per year of DyTb and also help BRE with engineering and commissioning for the refinery so it connects into the global supply chain smoothly.

BRE also got its final operating permit from Brazil’s National Authority on Nuclear Safety for its pilot plant, which means all major approvals are done and pilot work can start by mid 2026.
With high grade resources, solid institutional support and strong partners from France and Japan, BRE is setting up Brazil to become a new global hub for heavy rare earths production.

(Source: Company Announcements)