China’s recent imposition of export licensing requirements on key heavy rare earth elements (HREEs) like dysprosium, terbium, and yttrium, vital for defense, energy, and high-tech industries, presents a significant opportunity for Victory Metals (ASX:VTM). CEO Brendan Clark emphasizes the West’s over-reliance on a single nation for these critical minerals, viewing China’s move as a direct threat to national security and the global energy transition.
Victory Metals, with a $40 million market capitalization, is focused on developing its North Stanmore Project in Australia, touted as the ‘largest and most advanced clay-hosted HREE project.’ The project boasts high metallurgical extraction rates, including 94% for terbium and 87% for dysprosium. A scoping study for North Stanmore projected a 31-year mine life with a net present value of $1.212 billion and a 52% internal rate of return.
The global rare earth market, valued at US$2 billion, is projected to reach US$12 billion by 2030. Victory’s strategic positioning, coupled with exceptional heavy rare earth recoveries, aims to establish it as a reliable, large-scale, non-Chinese source of critical materials. This development underscores the importance of diversifying rare earth supply chains to mitigate geopolitical risks and secure access to these essential elements.
