A rare metal called neodymium is in your headphones, cellphone and electric cars like Tesla’s Model 3

You may not have heard of neodymium, but you are probably carrying some of it around with you right now. It is in your cellphone, your headphones and you might be driving several pounds of it around in your car.

Neodymium — pronounced “nee-oh-DIM-ee-um” — is one of 17 chemically similar elements called rare earth elements, and demand for this metal is on the rise.

 

Rainbow Rare Earths (LON:RBW) focus is the Gakara Project in Burundi, one of the highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects globally and the only African producer.

The Company began production of rare earth concentrates in Q4 2017 and is currently ramping up to a targeted run rate of 5,000tpa by the end of 2018 and 6,000tpa by the end of 2019. Rainbow has a ten-year distribution and offtake agreement with multinational thyssenkrupp Materials Trading secured for the sale of at least 5,000tpa of concentrate produced.

The Gakara basket is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70% of annual global REE sales due to their use in vital components in motors, generators, wind turbines, and electric vehicles.

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