Rainbow Rare Earths Sees Profit Boost From Yttrium Price Surge

Rainbow Rare Earths Ltd expects its Phalaborwa project in South Africa to see a significant economic boost following a surge in European yttrium oxide prices. The company's shares rose 5% after projections indicated that the project could add approximately $30 million to its annual earnings before interest, tax, depreciation and amortisation (EBITDA).

Market data from Argus Media, Inc. shows that yttrium oxide prices climbed from roughly $6 per kilogram in January 2025 to between $220 and $320 per kilogram. This price volatility followed the implementation of export controls by the Government of China in April 2025. The Phalaborwa project is expected to generate about 213 tonnes of yttrium oxide annually as part of its SEG+ mixed rare-earth product.

Chief Executive George Bennett noted that the price increase positively impacts the project because there is no extra cost to produce the mineral. He further stated that the disruption highlights the fragility of global dependence on China for strategic minerals essential to defense and high-tech manufacturing.