ABx’s Deep Leads Project Retains 98% Rare Earths, Targets Q4 MREC Sample

• Over 98% total rare earth retention achieved in impurity removal tests
• Complete aluminium impurity removal at optimal pH ~6
• High retention rates for key permanent magnet rare earths dysprosium and terbium
• ANSTO on track to deliver mixed rare earth carbonate (MREC) sample in Q4 2025
• Strong market interest driven by high-value rare earth content and favorable processing economics

Breakthrough in Rare Earth Purity

ABx Group Limited (ASX, ABX) has announced a significant milestone in its Deep Leads ionic adsorption clay rare earth project in Tasmania, reporting exceptional impurity removal results from a 100 kg bulk sample. Conducted by ANSTO, these tests demonstrated that over 98% of total rare earth elements were retained while effectively removing aluminium impurities, a key contaminant, at an optimal pH of approximately 6.

This breakthrough is particularly important for the production of a mixed rare earth carbonate (MREC) product, a critical intermediate for rare earth refining. The high retention rates of critical permanent magnet rare earths such as dysprosium (Dy) and terbium (Tb), elements vital for advanced clean energy technologies, underscore the project's potential to deliver a high-value product.

Process Efficiency and Economic Implications

The impurity removal tests involved carefully adjusting the pH of rare earth enriched leach solutions derived from the bulk sample. At the identified 'sweet spot' around pH 6, aluminium was fully precipitated out, while less than 2% of rare earths were lost. This separation is crucial as it suggests that the majority of rare earths can be efficiently extracted into the MREC product with minimal contamination.

ABx’s prior leaching tests also showed promising results, achieving 62-66% extraction rates for dysprosium and terbium under mild conditions, ambient temperature and pressure with low acid usage. These factors point to potentially lower operational costs and a cleaner environmental footprint compared to typical rare earth extraction methods.

Strategic Positioning and Market Interest

With the Deep Leads resource boasting one of the highest concentrations of dysprosium and terbium among ionic clay deposits globally, ABx is well positioned to meet growing demand for these critical elements. The company has already secured a memorandum of understanding with Ucore Rare Metals, a North American rare earth processor, and is in discussions with other potential offtake partners.

Market prices for dysprosium and terbium remain robust, especially outside China, where premiums reflect supply risk. ABx’s ability to produce a high-purity MREC at competitive costs could attract strong customer interest and support the development of Western supply chains for these strategic materials.

Next Steps and Outlook

ANSTO is on schedule to finalize impurity removal process conditions and produce the MREC sample by the fourth quarter of 2025. This sample will be provided to prospective customers for evaluation, marking a critical step toward commercialisation.

ABx’s Managing Director Mark Cooksey expressed optimism, highlighting the importance of these results as tangible evidence that a high proportion of rare earths can be extracted into a marketable product. The company’s broader portfolio, including clean fluorine chemical production and bauxite projects, complements its rare earth ambitions and underscores its commitment to sustainable resource development.

Bottom Line?

As ABx advances toward delivering its MREC sample, market eyes will be on customer feedback and the scalability of this promising rare earth extraction process.

Questions in the middle?

• How will customers respond to the MREC sample once delivered in Q4 2025?
• What are the projected costs and timelines for scaling up production beyond pilot tests?
• How might global rare earth market dynamics affect ABx’s strategic partnerships and pricing power?