Rainbow Rare Earths (LSE:RBW) has reported a major technical achievement at its Phalaborwa project, producing a high-purity mixed rare earth carbonate containing more than 55% total rare earth oxides—exceeding industry benchmarks. This breakthrough strengthens Rainbow’s positioning as a potential low-cost supplier of rare earth elements, a resource increasingly critical for economic security and resilience as global demand rises and supply chains face geopolitical pressures.
Despite this progress, the company’s financial performance remains a challenge, with continuing losses and no current revenue generation creating material risks. Even so, technical indicators point to strong bullish momentum, supported by the strategic importance of the Phalaborwa development. While valuation remains difficult given negative earnings, investor sentiment is being buoyed by Rainbow’s pipeline of projects and future growth potential.
About Rainbow Rare Earths
Rainbow Rare Earths Limited operates in the rare earth elements sector, focusing on the production and separation of both light and heavy rare earths. Its flagship initiative is the Phalaborwa project in South Africa, which recovers REEs from phosphogypsum stacks—waste material from phosphoric acid production—providing a cost-efficient and environmentally sustainable alternative to conventional mining.
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