Australia’s richest person has made a strategic move in the U.S. rare earths industry as competition with China for these high-tech materials heats up. Gina Rinehart, known for her investments in iron ore and battery metals, has acquired a 5.3% stake in MP Materials, the owner of the Mountain Pass rare earths mine in California. This move has caused a 20% increase in MP's share price over the last five days.
Rinehart's interest in rare earths extends beyond MP, with stakes in other companies like Arafura Resources in Australia and a Brazilian rare earth company. With her substantial wealth and influence, Rinehart could play a significant role in shaping the non-Chinese rare earths industry.
The potential merger between MP and Lynas Rare Earths, Australia’s top rare earth producer, could create a major non-Chinese source of these critical metals. Talks of a merger were held earlier this year but did not materialize. Rinehart's involvement in MP could reignite discussions and lead to a merger that includes other rare earth companies she has stakes in.
The U.S. and Australian governments are also collaborating to enhance their rare earth production capabilities. A joint Critical Metals Taskforce has been established to coordinate production capacities between the two countries. MP and Lynas are both constructing rare earth separation plants in Texas to supply finished products to the U.S. manufacturing sector.
Rinehart's recent investment in MP has not only boosted interest in Lynas on the Australian stock exchange but has also highlighted the growing connections between the U.S. and Australian rare earth industries. The companies involved, along with their major shareholders, are aligning their interests to strengthen the rare earth supply chain outside of China.
