Iluka Resources has completed 65% of construction at its Eneabba rare earths refinery in Western Australia and has spent A$1.237 billion so far. The cost estimate remains A$1.7 billion to A$1.8 billion, and the plant will produce separated magnet rare earth oxides.
At a glance
- Eneabba will produce neodymium, praseodymium, dysprosium and terbium oxides.
- Iluka produced dysprosium and terbium metal to specification during the quarter.
- It has bought equipment for potential production of 200 tonnes a year of dysprosium and terbium metal.
Background
Neodymium, praseodymium, dysprosium and terbium are rare earths used in the permanent magnets inside electric vehicle motors, wind turbines and defence equipment. Separating them into pure oxides is the step China dominates. Iluka is building Eneabba in partnership with the Australian government, backed by a loan from the Critical Minerals Facility run by Export Finance Australia.
What happened
Iluka Resources said in its September quarterly report that construction of its Eneabba rare earths refinery is 65% complete, Australian Mining reported on October 28. Capital spending has reached A$1.237 billion, and the cost estimate remains A$1.7 billion to A$1.8 billion.
Major equipment, concrete, pipe rack modules, large tanks and the main solvent extraction buildings are complete. Structural, mechanical, piping, electrical and instrumentation work continues.
Beyond oxides
During the quarter, Iluka produced dysprosium and terbium metal to specification as part of a study into making metals as well as oxides. It has bought metallisation equipment that could support commercial production of 200 tonnes a year of dysprosium and terbium metal.
Why it matters
Eneabba is being built in partnership with the Australian government, with a non-recourse loan from the Critical Minerals Facility run by Export Finance Australia. It will produce separated magnet rare earth oxides, including neodymium, praseodymium, dysprosium and terbium, the step of the supply chain China dominates.
The mineral sands business
At Balranald in New South Wales, Iluka is improving ore extraction and recovery. It shipped the first 30,000 tonnes of heavy mineral concentrate to Western Australia in September, for processing in November.
Iluka produced 76,000 tonnes of zircon, rutile and synthetic rutile and sold 115,000 tonnes. It received an average of $1,685 a tonne for zircon sand and expects $1,825 in the December quarter.
Our read
Outlook: neutral. Eneabba will add rare earth supply outside China, but it is still under construction.
What to watch
- Construction progress and commissioning at Eneabba.
- Iluka's decision on commercial dysprosium and terbium metal production.
- The Balranald ramp-up and first processing of its concentrate in November.
For information only, not investment advice.
Neodymium price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-28: Iluka reports Eneabba refinery construction is 65% complete.
Supply Drivers
A refinery for separated magnet rare earth oxides outside China is 65% built.
Government Policies
The Australian government is backing Eneabba through a Critical Minerals Facility loan.
What could lift prices
- Eneabba is still under construction, so new supply is not yet arriving.
- Demand for heavy rare earths such as dysprosium and terbium is drawing new investment.
What could weigh on prices
- A large new source of separated rare earths outside China is moving closer.
- Iluka could also produce up to 200 tonnes a year of dysprosium and terbium metal.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Australia | Medium | A government-backed rare earths refinery is 65% complete. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | A major rare earths refinery is advancing outside China. |
Who gains, who loses
- Magnet makers outside China: They could gain a new source of separated rare earth oxides.
- Chinese rare earth refiners: A competing refinery outside China is moving towards production.
Other ways this could play out
- If construction stays on budget, Eneabba could become a key non-Chinese supplier of magnet rare earths.
- If costs rise above A$1.8 billion, Iluka may need more funding.
Price risks
- Rare earth refineries are complex and often face start-up delays.
- Chinese export policy can swing rare earth prices sharply.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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