How Australia's Richest Billionaire Is Betting Big on US Rare Earths Dominance

Hancock Prospecting, the private mining vehicle of Australia’s wealthiest individual Gina Rinehart, has solidified its position as the leading investor in MP Materials (NYSE:MP), acquiring an 8.4 percent ownership stake. During Q3, Hancock expanded its MP holdings by adding 1 million shares—a strategic move that coincided with the company’s stock price surge, elevating MP to the top spot in Hancock’s investment portfolio.

Why Rare Earths Matter: The Strategic Play

MP Materials operates Mountain Pass, California’s only active rare earths extraction facility, and it’s become increasingly central to American efforts to reduce dependence on Chinese rare earth supplies. The mine achieved a milestone in 2024, producing 45,455 metric tons of rare earth oxide concentrate alongside a record 1,294 metric tons of neodymium-praseodymium (NdPr) oxide—essential materials for defense, technology, and clean energy applications.

The U.S. Department of Defense underscored the mine’s strategic importance by committing $400 million to acquire preferred stock in MP Materials, framing the arrangement as a “transformational public-private partnership.” Most recently, MP Materials announced a joint venture with Saudi Arabia’s Maaden to construct a rare earths refinery in Saudi Arabia, further cementing America’s role in shaping global supply chains beyond traditional sources.

“This agreement strengthens U.S. and Saudi interests and positions MP Materials as an American industrial champion capable of extending American capability internationally,” MP founder and CEO James Litinsky stated regarding the partnership.

A Diversified Rare Earths Portfolio

Rinehart’s rare earths strategy extends well beyond MP Materials. Through Hancock Prospecting, she maintains a controlling 15.7 percent stake in Arafura Rare Earths (ASX:ARU), having committed AU$125 million to a AU$475 million financing round in October 2024. Arafura is advancing its Nolans project, which is projected to eventually supply roughly 4 percent of global NdPr oxide production.

Additionally, Rinehart elevated her position in Lynas Rare Earths (ASX:LYC) to 8.21 percent through the purchase of approximately 10 million shares in January 2025. Earlier investments include a 5.85 percent stake in Brazilian Rare Earths (ASX:BRE), acquired before the company’s ASX listing in December 2023.

The Broader Mining Empire

Beyond rare earths, Hancock Prospecting’s portfolio encompasses lithium, copper, and numerous other commodities critical to industrial production and the energy transition—positioning Rinehart’s enterprise as a comprehensive bet on the commodities supercycle and resource nationalism worldwide.

With an estimated net worth of US$23.9 billion, making her Australia’s richest person and globally ranked 61st among billionaires as of March 2025, Rinehart’s concentrated investment in rare earths signals confidence in both the strategic importance and profit potential of securing non-Chinese supply chains for these critical materials.