Gina Rinehart dumps major lithium stocks in huge pivot to rare earths
Mining billionaire Gina Rinehart has slashed her portfolio of lithium investments as she continues to bet big on rare earths.
Mining billionaire Gina Rinehart has become the largest shareholder in the Trump administration’s rare earths darling MP Materials, co-investing with his Department of War to accrue a $US1bn ($1.5bn) stake.
She has walked away from a series of big investments in lithium stocks in the mean time. Mrs Rinehart, Australia’s richest person on account of her iron ore wealth, has exited her position in New York-listed Albemarle, Lithium Americas and Lithium Argentina, and sold down her stake in Sociedad Química y Minera (SQM).
She has history with Albemarle and SQM - two of the biggest established players in supply of the battery ingredient - in her home state of Western Australia, where they were part of a scramble to secure lithium assets that played out in 2023.
Filings with the US Securities and Exchange Commission show Mrs Rinehart slashed her lithium exposure in the three months to September 30. The selldown of US listed stocks came around the same time Mrs Rinehart’s private company, Hancock Prospecting, declined to participate in a capital raising by ASX-listed lithium producer Liontown Resources.
Hancock had what was a 19.9 per cent stake in the WA lithium miner diluted as taxpayers, through the National Reconstruction Fund, and a major Chinese player in the sector joined the register.
Liontown boss Tony Ottaviano, prodded by Hancock, then had to publish an apology on the company website after he speculated on Mrs Rinehart’s investment priorities.
In comments he later withdrew, Mr Ottaviano said: “I like to elaborate a little bit further around our largest shareholder.
“They’re being public in their assessment around their focus on the US, and their focus on oil and gas and their focus on rare earths. So I think their political perspectives are being very publicly noted.”
The US filings show Mrs Rinehart increased her shareholding in MP Materials from $US461.1m to $US996m.
In July, the Trump administration anointed MP Materials as America’s rare earths champion in a bid to break a near Chinese stranglehold on supply to key industries, including defence.
The US Department of Defence, since renamed the Department of War, said it would take a 15 per cent stake in the Las Vegas-based company. And, as part of that deal, the US agreed MP Materials will receive a minimum of $US110 per kg for its neodymium and praseodymium (NdPr) for a decade.
Australian rare earths players, including Rinehart-backed Lynas Rare Earths, are urging the Albanese government to match that floor price as part of a critical minerals pact with the US.
The MP Materials share price hit a record high of $US100.25 in mid-October but has since slipped back to around $US57.
Mrs Rinehart also retains a stake in steel-making coal, copper and zinc miner Teck Resources that was valued at $US343.2m at September 30 as Teck pushes ahead with a merger with former BHP takeover target Anglo American.
Her portfolio of US stocks includes smaller investments in Murdoch family-controlled Fox Corporation ($US43.1m) and in the Trump Media and Technology Group ($US7.06m).
Albemarle abandoned a $6.6bn takeover offer for Liontown pitched at $3-a-share in 2023 after Mrs Rinehart emerged as a major shareholder.
Liontown shares were trading around $1.53 on Tuesday, up from a close of $1.02 on November 7 and a 12-months low of 42c, amid a recovery in lithium prices.
S&P Global Platts data shows spodumene prices have almost doubled in less than six months to hit more than $US1000 a tonne earlier this month.
Mrs Rinehart joined forces with SQM in a $1.7bn takeover of Azure Resources in 2024 that landed them a 60 per cent stake in the Andover lithium deposit in WA.
The deal came just before a collapse in lithium prices that led to projects being delayed and mines mothballed. However, SQM has pushed ahead with its lithium partnership with Perth-headquartered Wesfarmers that included a mine and lithium hydroxide refinery.
Mrs Rinehart cut her stake in SQM by about a third in the September quarter and it was worth $US26.2m at the end of the three-month period.
Mrs Rinehart and Hancock Prospecting were contacted for comment.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout