ABx Group (ASX:ABX) has produced a rare-earth sample from its Northern Tasmanian project with over twice the level of key high-value elements found in any similar deposit outside China, positioning Australia as a major emerging supplier of critical minerals used in electric vehicles, wind turbines and advanced technology industries.
The company aims to establish its Deep Leads Rare Earths project as a long-term producer of mixed rare earth carbonate (MREC) with exceptionally high content of dysprosium (Dy) and terbium (Tb). These heavy rare earths are globally scarce, strategically critical, and face the highest supply risk outside China.
Deep Leads currently holds an estimated 89 million tonnes of rare earth material averaging 844 parts per million (ppm) Total Rare Earth Oxides (TREO) , including 36 ppm Dy and Tb — the highest proportion of these premium elements of any clay-hosted rare-earth deposit in Australia and among the highest globally.
ABx Group Managing Director & CEO Mark Cooksey said the result confirms ABx's position on a global scale.
"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. We've been eagerly anticipating confirmation of this MREC product, which is simply the best we know of from any ionic rare earth resource outside of China. Combined with the resource size, grade and ideal location near existing infrastructure, this means that the Deep Leads project is a highly compelling opportunity. We can't wait to share this result with our prospective customers and receive their feedback. The ABx MREC is likely to be particularly sought after by customers seeking high DyTb and low uranium and thorium."
Why Dy and Tb matter - and why the world needs new suppliers
Dy and Tb are critical for manufacturing heat-resistant permanent magnets used in:
- Electric vehicle motors
- Wind turbines
- Robotics
- Aerospace and guidance systems
- Defence technologies
They allow magnets to perform at high temperatures without losing strength — something no substitutes currently achieve at scale.
But the problem is simple:
- China dominates global Dy and Tb production, and export supply to Western manufacturers remains constrained
- These minerals face "the most acute supply risk" of any rare earth elements
- Tb oxide prices in China have been reported at almost US$1,000/kg, and Dy and Tb prices in Europe are more than three times higher than domestic Chinese pricing due to scarcity of non-China feedstock
ABx may help solve this by offering:
- A secure Australian source
- Exceptionally high Dy/Tb concentrations
- Ultra-low impurities with negligible radioactive content
- Production in a stable Western jurisdiction
This makes Deep Leads a potential strategic supply hub for European, US, Japanese and Korean manufacturers.
What happens next
- The MREC sample is now being distributed to major customers and potential offtake partners globally
- Customer testing and commercial negotiations are expected to intensify in 2026
