The $110/kg Line in the Sand: ARU’s Strategic Patience Pays Off

The ARU JV now makes perfect strategic sense—designed to capitalise on this emerging market opportunity. That also sheds light on DC’s remarks about increased presence in the U.S.—positioning ARU exactly where the action is unfolding.
The old bread crumbs are becoming biscuits!

The reality of the “opportunistic delay” strategy by a patient Rare Earth Oxide producer has just crystallised—and ARU now stands among the very few ex-China supply options in the Western world.

For those who missed the memo: major tech firms like Microsoft and Tesla don’t have direct access to Rare Earth Oxide. So where will they source it? Globally, of course—and ARU is now firmly positioned near the front of the queue, just like in Germany.

That puts an entirely new lens on the significance of ARU’s Phase 2 expansion plan, envisioned over a year ago. These strategically timed delays may now answer the big questions. It's a wild, wild moment—and potentially a masterstroke in long-term positioning.

Source of my view - REUTERS

https://www.reuters.com/sustainability/land-use-biodiversity/trump-administration-expand-price-support-us-rare-earths-projects-sources-say-2025-07-31/

Essentially, the entire U.S. has now aligned at $110/kg—setting a clear benchmark floor for ex-China pricing. In my view, the debate is settled. It's now unmistakably clear why the U.S. government's profit-sharing mechanism activates beyond $110/kg: they anticipated this floor would be accessible across the domestic market. The implication is obvious—price direction can only trend upward from here, and that now answers my question on why they achived profit sharing at such a high level. It's an extraordinary policy lever for Western competitiveness against China.

A landmark moment for ARU’s strategic positioning and opportunity set.

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