The Rarex Ltd (ASX: REE) share price rose by 8% yesterday on the back of the company's investor presentation on Wednesday 17 March.
The rare earth miner's share price is currently sitting at 13 cents per share, with a 12-month return of 915%, after announcing it was "supercharging" its rare earth growth strategy in 2021.
The company also announced it's signing a memorandum of understanding (MoU) with US$4.6 billion rare earth producer Shenghe Resources, supplier to Apple Inc (NASDAQ: AAPL).
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Rare earth prices surging on forecasted EV demand
Rarex owns 100% of the tier-1 Cummins Range Rare Earths project in Western Australia, and also has a 35% stake in Trundle Project in New South Wales.
Rarex's share price growth is largely due to the surging price of rare earth metals neodymium, praseodymium, dysprosium and terbium, which account for 90% of its Cummins Range output. This price has increased from around $50,000 to nearly $100,000 US$/t over the past 12 months.
Neodymium and dysprosium are the two main rare earth metals used in electric vehicles (EVs). Global EV industry growth of 70% is expected this year, with EVs forecast to represent 50% of global new car sales by 2030.
Quad focuses on Australian miners
The rare earth industry is drawing global attention this week after The Quadrilateral Security Dialogue (Quad) responded to China's "leverage" of their control over industry supply.
The Quad is a strategic partnership between the US, Japan, India and Australia aimed at protecting its members' economic interests.
The group recently agreed to redirect ores from one of Australia's largest rare earth miners, Lynas Rare Earth Ltd (ASX: LYC), to the US instead of China, which could increase the importance of Australia in the global market.
Fears of a rare earth price war
Lynas' share price has fallen 1.57% today after its CEO, Amanda Lacaze, raised fears last month that if Beijing chose to engage in a price war over rare earth minerals, it could collapse profits in the industry and hurt investors.
Lynas is currently the only rare earth miner outside of China with the infrastructure to process its own metals.
Lynas has far exceeded Rarex's share price growth, rising by more than $5 per share over the past 12 months, but a sector already prone to fluctuations is currently facing not only a very lucrative, but a very uncertain future.
