Top ASX rare earth shares to watch in 2025

What are rare earth shares?

Rare earth shares are the stocks of publicly listed companies involved in mining, processing or using rare earth elements, which are essential for modern technology and clean energy. These elements are used in electric vehicles (EVs), wind turbines, electronics and defence applications.

Rare earth elements (REEs) are, despite the name, relatively abundant in the Earth's crust, but they are rarely found in concentrations high enough to be mined economically.

Common characteristics of rare earth elements include:

• High conductivity and magnetism: Many REEs, such as neodymium and dysprosium, are used in strong permanent magnets for electric motors, wind turbines and electronics
• Chemical similarity: Most REEs have similar atomic sizes and chemical behaviour, which makes separating and refining them technically challenging
• Light and heavy categories: They are often classified into light rare earth elements (LREEs) like lanthanum and cerium, and heavy rare earth elements (HREEs) like dysprosium and terbium, which are rarer and more valuable
• Critical for modern technology: REEs are essential in electronics, batteries, renewable energy, aerospace and defence
• Reactivity: Some rare earth metals oxidise easily in air, requiring careful handling in industrial processes

Share traders are drawn to rare earth shares for their growth potential, while CFD traders can take advantage of the sector’s volatility and event-driven price swings.

What are the 17 rare earth elements?

1. Scandium
2. Yttrium
3. Lanthanum
4. Neodymium
5. Dysprosium
6. Cerium
7. Terbium
8. Samarium
9. Praseodymium
10. Europium
11. Gadolinium
12. Holmium
13. Lutetium
14. Thulium
15. Ytterbium
16. Erbium
17. Promethium

Advantages of rare earth shares

Some of the pros of rare earth shares include:

• High growth potential: Rare earths are essential for EVs, renewable energy, electronics and defence, creating long-term demand
• Strategic importance: Many governments are supporting domestic rare earth production to reduce dependence on China, providing policy tailwinds
• Exposure to emerging technologies: Share traders gain indirect exposure to the clean energy transition and advanced technology markets
• Volatility for traders: CFD traders can potentially profit from short-term price swings driven by project updates, exploration results and market sentiment
• Portfolio diversification: Rare earth shares can diversify an investment portfolio beyond traditional commodities, stocks and sectors

Risks of rare earth shares

While there are benefits to trading rare earth shares, there are downsides, too. These include:

• Price volatility: Rare earth prices can fluctuate sharply, especially for small-cap or early-stage companies, which can increase risk for both CFD traders and share traders
• Operational and project risk: Mining and processing are technically complex and costly, with uncertainties around project timelines and feasibility
• Geopolitical risk: Supply chains are concentrated globally, so international tensions or trade restrictions can impact prices and operations
• Capital intensity: Many rare earth projects require significant funding before producing revenue, making smaller companies dependent on external capital
• Regulatory and environmental risk: Permitting, environmental approvals and compliance with local and international regulations can delay projects or add costs

Top 3 ASX-listed rare earth shares for share traders to watch in 2025

We picked these three shares for share traders to watch because of their stock price growth year to date (YTD) and their potential for exponential growth in expanding sectors.

All figures are accurate as of 27 October 2025.

Overview of the shares in this section

You can share trade all the stocks in this section with us.

1. Lynas Rare Earths Limited (ASX: LYC)

Market cap: A$18.94 billion¹

Lynas is the world’s largest rare earths producer outside of China, with operations in Australia and Malaysia. Its flagship Mount Weld mine in Western Australia is a high-grade source of neodymium and praseodymium (NdPr), two critical elements for EV motors, wind turbines and other high-tech applications.

The company also operates a processing plant in Malaysia that converts ore into separated rare earth products ready for global customers.

For share traders, Lynas stands out due to its scale, production capacity and strategic importance. With most rare earth supply currently dominated by China, Lynas offers a unique opportunity for long-term growth while supporting global supply diversification.

Year to date (YTD), Lynas shares have performed strongly, benefiting from increased demand for clean-energy technologies and government support for critical minerals.

Highlights:

• Key advantages include operational experience, established export channels and long-term offtake contracts with global technology companies
• Geopolitical tensions can affect supply chains, along with fluctuations in rare earth prices and operational challenges at the Mount Weld and Malaysian facilities
• Its YTD share price has grown 185.69%²

2. Iluka Resources Limited (ASX: ILU)

Market cap: A$3.31 billion³

Iluka Resources, traditionally a leading zircon and titanium producer, is strategically expanding into rare earths, particularly neodymium and praseodymium. Its Eneabba and Wimmera projects aim to produce high-purity NdPr oxides, supported by Australian government initiatives to boost domestic critical mineral processing.

Share traders may find Iluka appealing because it combines existing mining expertise with a transition into high-demand rare earths. The company has a strong balance sheet and technical know-how, making its expansion into NdPr less risky than pure-play explorers.

Highlights:

• Iluka offers exposure to the EV and renewable energy markets through rare earth production, while maintaining diversified revenue streams from zircon and titanium
• Risks include project development delays, funding requirements and market price volatility for rare earths
• It’s seen a healthy share price growth of 42.74% YTD⁴

3. Arafura Rare Earths Limited (ASX: ARU)

Market cap: A$1.22 billion⁵

Arafura is developing the Nolans NdPr Project in the Northern Territory, aimed at producing neodymium-praseodymium oxide for magnets used in EV motors and wind turbines. The project has secured a major offtake agreement with Siemens Gamesa, providing early revenue visibility and validation for share traders.

Arafura represents a pure-play rare earth growth opportunity, offering potential upside if Nolans reaches full-scale production. Its relatively small market cap makes it more sensitive to developments and news, but partnerships with global industrial leaders add credibility.

Share traders are attracted by the strategic location, access to critical infrastructure and the global push for green energy technologies, which supports demand for NdPr.

Highlights:

• Risks include production delays and reliance on global rare earth pricing
• Having said that, Arafura’s share price has benefited from positive project updates and industry tailwinds, making it a compelling long-term growth pick
• One of the highest recent growth stories on our list, its share price has soared 226.09% YTD⁶

Top 3 ASX-listed rare earth shares for CFD traders to watch in 2025

We picked these three shares for CFD traders mainly for their stock price volatility YTD, providing opportunities to take advantage of market movements.

All figures are accurate as of 27 October 2025.

Overview of the shares in this section

You can CFD trade Lindian Resources and Hastings Technology Metals with us.

1. Lindian Resources Limited (ASX: LIN)

Market cap: A$607.12 million⁷

Lindian Resources is an early-stage rare earth explorer with projects in Guinea and Tanzania, targeting neodymium, praseodymium and other critical minerals. The company’s exploration strategy focuses on identifying high-grade deposits for potential future production.

For CFD traders, Lindian’s small market cap and early-stage profile create significant price swings, especially around drilling results, assay updates or new exploration news. Shares often move sharply in response to announcements, making them attractive for traders looking to capitalise on short-term volatility.

However, Lindian carries higher risk than larger producers. Projects are pre-revenue, and successful extraction depends on future feasibility studies, funding and permitting.

Highlights:

• While speculative, Lindian is good for traders who can monitor market-moving news and manage positions actively
• Its share price has increased by 265.38% YTD, but it’s seen significant volatility over the past few months, from August 2025 to now⁸

2. Hastings Technology Metals (ASX: HAS)

Market cap: A$150.76 million⁹

Hastings Technology Metals is advancing the Yangibana rare earth project in Western Australia, known for its high NdPr content. The company focuses on developing production-ready deposits to supply global technology markets, including EV motors and wind turbines.

For CFD traders, HAS shares are sensitive to project milestones, funding news and government approvals. Even minor updates can trigger sharp price movements, offering short-term trading opportunities. Its larger scale compared to micro-cap explorers makes it slightly less volatile but still active enough for CFD strategies.

HAS combines a mix of stability from a well-known project with enough event-driven volatility to appeal to traders looking to leverage news flow.

Highlights:

• Traders should be aware of execution risks, project timelines and commodity price fluctuations, which can amplify share price swings
• The share price has increased 103.13% YTD, an impressive growth story for the rare earth company. The value has been relatively stable for most of the year until early October, when it picked up significantly – well worth watching for CFD traders¹⁰

3. Victory Metals (ASX: VTM)

Market cap: A$147.80 million¹¹

Victory Metals is an Australian-listed rare earth explorer focused on heavy rare earth elements and critical minerals. Its flagship project, the North Stanmore Project, is located near Cue in Western Australia. It’s considered one of Australia’s largest clay-hosted heavy rare earth deposits.

Recent drilling has confirmed a substantial resource, including high-grade dysprosium oxide and other critical elements such as scandium and hafnium, all in demand for EV motors, wind turbines and defence applications.

For CFD traders, Victory Metals is particularly attractive due to its event-driven volatility. Being an early-stage project, its share price reacts strongly to drilling results, development updates and strategic partnership announcements.

The stock’s smaller market cap compared with larger producers also amplifies its price sensitivity.

The company has partnered with Sumitomo Corporation, a major Japanese trading house, to advance the North Stanmore Project and help secure supply agreements for critical minerals.

Highlights:

• It’s still in the development stage, so traders should be aware of regulatory, environmental and operational uncertainties. Production timelines are still years away, and market prices for rare earths can fluctuate sharply
• The company’s share price has increased 158.54% YTD – and it was another relatively stable company until around the mid-year; in May 2025, we started to see some volatility in it¹²

How to trade ASX rare earth shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX rare earth shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX rare earth shares
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about rare earth shares

Footnotes
 

1. TradingView, October 2025
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