Rinehart Builds Rare Earths Empire to Challenge China's Global Dominance

Gina Rinehart has spent recent years assembling one of the most deliberate rare-earths portfolios of any private investor, positioning Hancock Prospecting across the Western producers most likely to challenge China's dominance of the sector.

The strategy centres on strategic minority stakes rather than outright control. Hancock revealed a holding in Lynas Rare Earths, the world's largest rare earths producer outside China, which grew to around 8.2 per cent by early 2025. It sits alongside a position of about 5.3 per cent in US producer MP Materials, giving Rinehart exposure to rare-earths supply chains on two continents.

Backing Australian projects

Rinehart has also thrown weight behind emerging domestic projects. Hancock lifted its equity stake in ASX-listed Arafura Rare Earths to about 17.5 per cent in 2026, following Australian federal government approval for construction in the Northern Territory. The company has additionally been linked to a position in a rare-earths venture focused on the Americas.

The pattern is consistent: identify producers with genuine scale or strategic projects, take a meaningful but minority position, and provide patient capital to help move projects toward production.

The China factor

Rare earths are essential to electric vehicles, wind turbines, defence systems and advanced electronics, yet processing capacity remains heavily concentrated in China. That concentration has become a geopolitical flashpoint, with Western governments actively seeking to build independent supply chains.

Rinehart's investments align neatly with that policy push. By backing non-China producers, and doing so before many institutional investors moved in, she has positioned Hancock as a significant private player in what has become one of the most strategically important corners of the resources world.

A long game

None of these stakes deliver quick returns; rare-earths projects are capital-intensive and slow to mature. But that time horizon suits Rinehart, whose iron ore cash flows allow her to invest for the long term. If Western supply chains scale as governments intend, Hancock's early positioning could prove among the shrewdest elements of her diversification strategy.

Sources: Rare Earth Exchanges; Stockhead; Investing News Network

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.