ABx Group Delivers Game-Changing Maiden Mixed Rare Earth Carbonate with Industry-Leading Dysprosium and Terbium Content
ABx Group Limited (ASX: ABX) has achieved a significant milestone with the production of its first mixed rare earth carbonate (MREC) sample from the Deep Leads deposit in northern Tasmania. The results are remarkable: ABx Group rare earth carbonate contains 4.0% dysprosium and 0.7% terbium as a percentage of total rare earth oxides (TREO), representing 2.8 to 4.7 times higher concentrations than any peer MREC produced outside of China.
Working in partnership with the Australian Nuclear Science and Technology Organisation (ANSTO), ABx has produced an MREC with exceptionally high concentrations of the critical heavy rare earths dysprosium and terbium. These elements command premium prices and face acute supply shortages globally.
This superior composition translates to a calculated basket price that is 17% to 51% higher than competing products. Furthermore, the achievement validates ABx's potential as a strategic supplier in the critical minerals market.
Exceptional Heavy Rare Earth Profile Sets New Industry Benchmark
The standout feature of ABx Group rare earth carbonate is its heavy rare earth content, particularly the critical magnet rare earths dysprosium and terbium. These elements are essential for high-performance permanent magnets used in electric vehicle motors, wind turbines, and defence applications.
Key compositional highlights include:
- Dysprosium content: 4.0% of TREO
- Terbium content: 0.7% of TREO
- Combined DyTb content: 4.7% of TREO
- Very low impurities: Minimal aluminium, uranium, and thorium
- Calculated basket price: US$43/kg
The following table compares ABx's MREC composition against peer companies:
| Company | La₂O₃ | CeO₂ | NdPr | DyTb | Y₂O₃ | Basket Price (US$/kg) |
|---|---|---|---|---|---|---|
| ABX | 18.2% | 5.8% | 27.7% | 4.7% | 27.1% | $43.06 |
| MEI | 57.6% | 1.4% | 30.6% | 1.0% | 4.5% | $28.59 |
| VMM | 48.2% | 0.6% | 36.5% | 1.3% | 6.7% | $35.41 |
| BCM | 34.7% | 8.9% | 36.2% | 1.7% | 8.7% | $36.68 |
The superior heavy rare earth profile positions ABx's MREC as a premium product in a market where dysprosium trades at over US$200/kg and terbium exceeds US$900/kg. In addition, this exceptional grade composition demonstrates the quality of the underlying resource.
What Makes Mixed Rare Earth Carbonate Commercially Valuable?
For investors new to rare earth processing, MREC represents the intermediate product that refineries purchase to produce separated rare earth oxides, metals, and ultimately permanent magnets. MREC functions as the commercial product that sits between raw ore and finished rare earth materials.
The three-step MREC production process involves:
- Leaching: Extracting rare earths from clay using ammonium sulphate solutions
- Impurity removal: Eliminating aluminium and other contaminants through pH adjustment
- Precipitation: Converting dissolved rare earths to solid carbonate form
Why MREC Matters to Investors
MREC represents the tradeable product that generates revenue for rare earth companies. Quality directly impacts pricing and customer demand, whilst production validates commercial viability of the resource.
Moreover, MREC provides samples for customer evaluation and offtake negotiations. ABx's ability to produce high-quality MREC under standard conditions suggests the company can achieve lower processing costs compared to deposits requiring more intensive processing.
"This is one of the most significant achievements of our rare earths project and we are simply delighted with this result, especially since it is our first MREC product and there is significant scope for optimisation," said Mark Cooksey, ABx Group CEO.
Strategic Market Timing and Supply Chain Positioning
The production of ABx Group rare earth carbonate comes at a critical time for global rare earth supply chains. With dysprosium and terbium facing the most acute supply risks among all rare earths, the timing aligns with growing Western demand for non-Chinese sources.
Current market context reveals:
- Dysprosium prices: Over US$200/kg (China domestic)
- Terbium prices: Over US$900/kg (China domestic)
- European prices: 3x higher than Chinese domestic prices
- Supply risk: Heavy rare earths face the greatest supply constraints
ABx's Competitive Advantages
ABx has positioned itself advantageously through several key differentiators. The company offers a premium product with 2.8-4.7x higher DyTb content than peers, combined with low impurities, particularly minimal aluminium content.
Furthermore, the processing efficiency demonstrates high extractions at ambient conditions, whilst Tasmania's established infrastructure provides Western supply chain access. The company has already executed a Memorandum of Understanding with Ucore Rare Metals Inc., focused on North American processing facilities.
Additionally, ABx is in discussions with additional offtake partners, indicating strong commercial interest in the ABx Group rare earth carbonate product.
Immediate Development Pipeline and Timeline
With the maiden MREC sample in hand, ABx is moving quickly to capitalise on this breakthrough achievement. The company has outlined several immediate actions to advance commercial discussions.
Immediate priorities include:
- Customer engagement: MREC samples being shared with prospective customers and offtake partners
- Evaluation phase: Customer feedback expected to deepen discussions and negotiations
- Column leach tests: ANSTO conducting bulk sample column tests with preliminary results due December
Development Pipeline Progression
The development pipeline encompasses further process optimisation to improve recoveries and an expanded customer evaluation program. Moreover, the company is progressing toward commercial-scale processing whilst planning resource expansion drilling across the remaining 71% of mineralised outline.
However, the 89 million tonne resource contains 36 ppm Dy+Tb, representing 4.4% of TREO – among the highest grades globally for ionic clay deposits. This resource estimate covers only 29% of the project's mineralised outline, suggesting significant expansion potential.
Investment Thesis: Premium Product in Supply-Constrained Market
ABx Group presents a compelling investment opportunity at the intersection of critical mineral supply shortages and superior resource quality. Several factors combine to create a differentiated investment proposition for investors seeking exposure to critical minerals.
Resource Quality Advantages
The company demonstrates the highest DyTb content at 4.4% of TREO among Australian ionic clays, supporting premium pricing that is 17-51% higher than peer MRECs. Processing efficiency under standard ionic clay processing conditions indicates potential cost advantages.
In addition, the large scale 89Mt resource offers expansion potential across the broader mineralised footprint. The resource quality positions ABx advantageously in the heavy rare earth market.
Strategic Market Position
ABx offers non-Chinese supply critical for Western supply chain diversification, operating within Tasmania's mining-friendly jurisdiction with established infrastructure. Early customer engagement demonstrates commercial interest, whilst the ANSTO collaboration provides technical credibility.
Furthermore, market timing aligns with supply constraints as dysprosium and terbium face acute shortages. European prices trading at 3x higher than Chinese domestic levels reflect supply-demand imbalances.
However, policy support from Western governments prioritising critical mineral security creates favourable operating conditions. Growing EV and renewable energy markets drive increasing demand for heavy rare earths.
Why Should Investors Monitor ABx Group?
ABx Group has demonstrated that it possesses one of the world's highest-quality ionic rare earth resources outside of China. The maiden MREC sample provides tangible proof of commercial viability for the ABx Group rare earth carbonate product.
The company's unique position in the heavy rare earth market, combined with strategic location and processing partnerships, creates multiple pathways to value creation. Nevertheless, several key factors warrant investor attention.
Key tracking reasons for investors:
| Factor | Investment Relevance |
|---|---|
| Premium product quality | 2.8-4.7x higher DyTb content supports premium pricing |
| Supply chain diversification | Western customers seeking non-Chinese sources |
| Resource expansion | Only 29% of mineralised area defined to date |
| Processing efficiency | Standard conditions suggest lower operating costs |
| Strategic partnerships | ANSTO collaboration and Ucore MOU |
With upcoming customer feedback, continued process optimisation, and potential resource expansion, ABx offers investors exposure to one of the most supply-constrained segments of the critical minerals market.
Long-Term Strategic Significance
The production of ABx Group rare earth carbonate represents more than a technical milestone – it validates ABx's potential to become a significant player in supplying rare earths essential for the global energy transition.
Moreover, the superior resource quality commands premium pricing in a supply-constrained market. With customer evaluations underway and significant expansion potential remaining, ABx has positioned itself strategically.
Key Investment Takeaway: ABx Group has positioned itself as a major player in the global heavy rare earth market, with superior resource quality that commands premium pricing. With customer evaluations underway and significant expansion potential remaining, investors should monitor ABx closely as it advances toward becoming a strategic supplier in the critical minerals supply chain.
Looking for Exposure to Critical Heavy Rare Earth Discoveries?
Discovery Alert's proprietary Discovery IQ model delivers instant notifications when companies like ABx Group announce breakthrough developments in critical minerals, helping investors identify premium opportunities in supply-constrained markets before they gain broader attention. Start your 30-day free trial today to discover major mineral announcements and position yourself ahead of market movements in the critical minerals sector.
