VHM Delays Goschen Rare Earth Project Amid Industry Flux

VHM

Australian Rare Earth Supply Growth Slows with Six-Month Project Delay

VHM has postponed the launch of its Goschen rare earth project in Victoria, pushing back operations by six months. This delay marks the second time the company has adjusted its timeline, now planning to begin production in late 2026 instead of early 2026. The Goschen project aims to produce 4,300 tonnes per year (t/yr) of rare earth mineral concentrate, processing 1.5 million tonnes of ore annually.

Despite the delay, VHM remains committed to scaling operations. After maintaining initial output for three years, the company will more than double production to 9,000 t/yr by the end of 2029. These figures underline VHM’s long-term confidence in rare earth demand, even as market conditions remain volatile. The company has already secured offtake agreements covering 6,400 t/yr, starting once full production is reached in 2029.

Government Support Drives Broader Sector Momentum

Australia continues to prioritize rare earth development as part of its critical minerals strategy. The federal government recently injected A$200 million into Arafura Rare Earths’ Nolans project in the Northern Territory. Additionally, Iluka Resources secured a A$400 million loan for its Eneabba refinery in Western Australia, reflecting growing institutional backing for domestic refining capabilities.

These initiatives come as global interest in rare earths remains high, despite price volatility. China's FOB price for praseodymium-neodymium oxide climbed from $55,550/t in February 2024 to $60,000/t in February 2025. However, it remains far below the March 2022 peak of $174,750/t, underscoring the impact of global oversupply.

Market Headwinds Persist, But Long-Term Demand Remains

While the rare earth market grapples with short-term pricing challenges, long-term fundamentals remain strong. The increasing electrification of transport and demand for wind turbines continue to support rare earth consumption forecasts. VHM’s delay may reflect cautious capital deployment, but its ramp-up plan and offtake agreements suggest confidence in future market stability.

As Australia expands its position as a reliable rare earths supplier, the Goschen project will likely play a crucial role in strengthening the country's critical mineral value chain.