Beyond The Rainbow : Unlocking Rare Earths for a Western Supply Chain
“…We’ve got no mining risk. We’ve got no geological risk. We need to get to market as quickly as possible…”
What if the next big opportunity in rare earths was already mined, sitting in enormous industrial waste piles, just waiting to be unlocked? That is the intriguing proposition behind Rainbow Rare Earths, which is looking to turn phosphogypsum, a by-product of fertiliser production, into a potential source of the critical metals powering electric vehicles, wind turbines, robotics and defence technology.
For investors seeking exposure to the race to secure Western supplies of rare earths, Rainbow’s approach offers a compelling twist: recovering valuable materials without the conventional costs and risks associated with mining fresh ore.
The company is building an investment proposition around an increasingly valuable commodity: the rare earth elements essential to permanent magnets, electric vehicles, wind turbines and defence technology. Its point of difference? Recovering these strategically important materials from an existing industrial waste stream, rather than mining fresh ore.
“We’ve got no mining risk. We’ve got no geological risk,” says chief executive George Bennett explaining the attraction of phosphogypsum, a residue produced during phosphoric acid manufacturing.
Rainbow’s flagship Phalaborwa project in South Africa contains rare earth concentrations of approximately 4,400 parts per million. Its Brazilian opportunity Uberaba boasts around 5,100ppm. Both offer the prospect of extracting value from material already above ground, potentially reducing capital intensity and simplifying processing.
The immediate milestone is Phalaborwa’s pre-feasibility study, targeted before the end of 2026, followed by a definitive feasibility study in the second quarter of 2027. Rainbow is targeting a final investment decision in the third quarter of 2027, with early construction work potentially beginning later that year and production targeted for early 2029.
The company is also moving further downstream. Its proposed partnership with Neo Performance Materials aims to support high-purity neodymium and praseodymium oxide production, alongside valuable heavy rare earth products. The commercial arrangements are designed to direct material into Western supply chains rather than China.
Bennett believes the market opportunity extends well beyond electric cars. Robotics, defence applications, consumer electronics and renewable energy all underpin demand for permanent magnets. “We need to get to market as quickly as possible,” he says, pointing to supply constraints across the rare earth industry.
Brazil offers a second potential growth engine. Rainbow’s joint development agreement with fertiliser group Mosaic gives it a 49% interest in the proposed Uberaba project. Bennett cited indicative capital expenditure of $300 million, annual EBITDA of approximately $210 million, a post-tax internal rate of return above 45% and a resource life exceeding 30 years. These remain project-stage estimates, subject to further technical and commercial work.
As discussed with Sarah Lowther in this video interview, a possible US listing is also under consideration, with George anticipating access to deeper capital markets and a potentially stronger valuation.
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Read the 2026 Annual Report
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For the latest Company Corporate Presentation click here
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Follow the company on ‘X’ – @RainbowREarths
The author was remunerated but does not hold shares in the company
