Rinehart drops lithium stakes for rare earths

Gina Rinehart has become the majority shareholder in the US’s only rare earths producer, MP Materials, while majorly decreasing her US-listed lithium holdings.

Despite S&P Global Platts data showing spodumene prices have almost doubled in less than six months, filings with the US Securities and Exchange Commission (SEC) show Ms Rinehart majorly decreased her holdings in producer Sociedad Química y Minera (SQM) by about a third and exited her position in Albemarle, Lithium Americas and Lithium Argentina during Q3 CY25.

In 2024, Hancock Prospecting — Ms Rinehart’s privately owned company — partnered with SQM in a multi-billion-dollar takeover of Azure Resources to acquire a 60% stake in the Andover lithium deposit in WA just before a major downturn in lithium prices.

SQM has continued its lithium ventures with WA-based Wesfarmers, including the development of the Mt Holland mine and a lithium hydroxide refinery in Kwinana.

The US SEC filings also show Hancock Prospecting purchased an additional one million shares in MP Materials during Q3 CY25, lifting its stake to 8.4% to a holding valued at about $1.5b [US$997m] — the biggest position in Hancock’s rare earths portfolio, according to Bloomberg.

This purchase brings the value of Hancock Prospecting’s US-listed stocks and exchange-traded funds portfolio to about $4.6b [US$3b].

MP Materials chief executive officer and founder James Litinsky is the company’s second biggest shareholder, with a 7.9% stake, according to Bloomberg.

As the only rare earths mine operator in the US, MP Materials holds a dominant position within the US domestic supply chain. The company received a $400m equity investment from the US Department of WAR (DoW) in July.

MP Materials plans to commission its heavy rare earth separation facility at Mountain Pass rare earth mine in California by mid-2026 that will process about 3btpa of feedstock.

The facility will initially prioritise production of dysprosium and terbium, critical elements for high-performance magnets used in defence and aerospace industries.