Australian Gallium Production Takes Shape as RareX Partners with Tech Innovator
RareX Limited (ASX: REE) has executed a strategic collaboration agreement with Australian technology company Gega Elements to develop Australia's first vertically integrated gallium extraction and refining capability. This partnership aims to unlock value from gallium at RareX's Cummins Range and Khaleesi Projects while strengthening national critical mineral resilience.
Gallium, a crucial component in semiconductors, defense electronics, and advanced communications, currently has its global supply heavily concentrated in China. This collaboration positions RareX to become one of only a select few large-scale potential gallium developments outside of China.
"This partnership with Gega Elements begins to position RareX as one of a select few large-scale potential gallium developments outside China," said James Durrant, RareX Managing Director. "Gallium is critical for semiconductors, 5G, and defense — yet almost entirely controlled by a single jurisdiction. Through this collaboration, we're working to change that, leveraging RareX's resource scale and Gega's science-driven approach to build a truly sovereign supply solution."
Breaking China's Gallium Monopoly: Why This Matters
The global gallium market faces a critical supply vulnerability with production heavily concentrated in China. This strategic metal is essential for:
- Semiconductor manufacturing (gallium arsenide and gallium nitride)
- 5G communications infrastructure
- Defense electronics and radar systems
- Emerging clean energy technologies
The RareX-Gega collaboration addresses this vulnerability by developing an Australian-controlled supply chain, reducing dependence on a single jurisdiction for this critical resource. This aligns with growing government initiatives worldwide to secure supply chains for critical minerals.
What Makes Gallium a Critical Mineral?
Gallium is classified as a critical mineral due to its essential role in modern technologies and the high risk associated with its supply chain. Unlike common metals, gallium is typically recovered as a byproduct of processing other metals, making dedicated production facilities rare.
The metal's unique properties include:
- Low melting point (29.8°C)
- Excellent thermal and electrical conductivity
- Stability in high-temperature applications
- Critical for producing gallium nitride (GaN) for power electronics
The Collaboration Framework: Technical Validation to Commercialisation
The three-year agreement establishes a clear pathway from technical validation to potential commercialisation:
- Technical validation of RareX gallium supply chain samples through Gega's bench-scale refining platform
- Integration of results into techno-economic modelling for RareX's broader project assessments
- Joint development of bespoke refining flowsheets for RareX's resource characteristics
- Coordination of government grant applications and engagement with strategic end-users
- Pathway toward a binding commercial agreement upon successful technology demonstration
Gega Elements brings proprietary gallium refining technology to the partnership, developed through dedicated industrial R&D programs. Their approach focuses on creating cost-effective, environmentally responsible processing methods that could establish Australia's first domestic gallium production capability.
Under the agreement, RareX will have an option to negotiate exclusive rights to any gallium refining intellectual property developed using ore or data from its Cummins Range and Khaleesi Projects, for application at those projects.
RareX's Growing Critical Minerals Portfolio
The Gega Elements partnership complements RareX's broader strategy of building vertically integrated, future-facing critical mineral supply chains. RareX's portfolio includes:
- Cummins Range Project: A carbonatite-hosted rare earths, gallium, scandium, and phosphate project with a post-tax NPV8 of +$330 million. Technically Australia's largest undeveloped rare earths project.
- Khaleesi Project: A district-scale, elevated-niobium, alkaline intrusive complex in the East Yilgarn.
- Mt Mansbridge: Xenotime heavy rare earths project near Browns Range.
- Piper Project: Newly acquired bulls-eye project along trend from Nolans Bore and the Luni niobium deposit.
The company also maintains strategic investments in Kincora Copper (ASX:KCC), Cosmos Exploration (ASX:C1X), and Canada Rare Earth Corporation (LL.V).
Understanding Carbonatites: The Geological Advantage
RareX's focus on carbonatite-hosted deposits provides a significant geological advantage for critical mineral exploration and development. But what exactly are carbonatites?
Carbonatites are rare igneous rocks composed of more than 50% carbonate minerals, making them distinctly different from typical silicate-based rocks. These unusual formations represent less than 1% of all igneous rocks worldwide but are disproportionately important for critical minerals.
Key benefits of carbonatite deposits include:
- Enrichment in rare earth elements (REEs), niobium, tantalum, and phosphate
- Higher concentrations of valuable minerals compared to other deposit types
- Relatively simple metallurgy for certain elements
- Potential for multiple revenue streams from co-products and by-products
This geological focus gives RareX a specialised niche in the critical minerals sector, with gallium being one of several valuable elements present in these deposits.
Investment Thesis: Strategic Position in Critical Technology Minerals
RareX's strategic collaboration with Gega Elements positions the company at the intersection of three powerful investment trends:
- Critical mineral security: National governments are increasingly supporting domestic supply chain development for strategic metals.
- Technological demand growth: Gallium applications in semiconductors, 5G, and defense are experiencing strong growth trajectories.
- Vertical integration premium: Companies that control multiple stages of critical mineral supply chains typically command higher valuations.
The company's Cummins Range Project already demonstrates significant economic potential with its +$330 million NPV8 post-tax valuation. The addition of gallium extraction and refining capabilities could potentially enhance this value proposition, particularly if the collaboration results in proprietary technology development.
RareX's approach aligns with Australia's Critical Minerals Strategy, which aims to position the country as a global supplier of critical minerals essential for clean energy technologies, digital economies, and defense applications.
Why Investors Should Track RareX's Development
RareX represents a unique opportunity in the critical minerals space for several compelling reasons:
- Diversified critical minerals portfolio spanning rare earths, niobium, gallium, scandium, and phosphate
- Advanced-stage project at Cummins Range with defined economics
- Strategic technology partnership with Gega Elements addressing supply chain vulnerabilities
- Alignment with government priorities for critical mineral development
- Vertical integration strategy that could capture additional value beyond mining
With global tensions highlighting the vulnerability of critical mineral supply chains, companies like RareX that are developing domestic alternatives to concentrated foreign supply are likely to receive increased attention from investors, customers, and government stakeholders.
The collaboration with Gega Elements adds a technology dimension to RareX's portfolio, potentially providing intellectual property and know-how that extends beyond simple resource extraction. As the partnership progresses through technical validation to potential commercialisation, investors should watch for key milestones that demonstrate the viability of an integrated Australian gallium supply chain.
Want to Capitalise on Australia's Critical Minerals Future?
To learn more about RareX's strategic gallium partnership and their broader critical minerals portfolio, including the Cummins Range Project's impressive +$330 million NPV8, visit their investor announcement page. Discover how this ASX-listed company is positioning itself as one of the few large-scale gallium developers outside China while building Australia's first vertically integrated gallium capability. Explore the full announcement here and consider how this critical minerals opportunity might fit into your investment strategy.
