HANetf has announced the launch of Sprott Rare Earths Ex-China UCITS ETF (ticker: REXC), with a TER of 0.65 per cent.
The ETF aims to provide focused exposure to companies outside China involved in the mining, separation, refining, or production of rare earths. The firm writes that its pure-play approach targets companies deriving the majority of their revenue or assets from these activities, offering investors access to businesses closely connected to the development of rare earths supply chains.
“Rare earths are a group of 17 metallic elements whose magnetic, optical, and chemical properties make them important inputs for advanced technologies. Their applications include powerful permanent magnets used in electric vehicles, wind turbines, and defence systems, alongside components supporting data centres and communications infrastructure. Although relatively abundant in the Earth’s crust, economically viable deposits are less common, and separating the elements is technically complex and energy-intensive.
“Rare earths supply chains remain highly concentrated. According to the International Energy Agency, China accounted for 91 per cent of global refined output of magnet rare earths and 94 per cent of sintered permanent magnet production in 2024. [3] This concentration, alongside China’s export controls, has increased the urgency for governments and manufacturers to develop alternative sources of supply for materials essential to industrial competitiveness and national security.”
The firm writes that policy support is extending beyond supply agreements to mechanisms designed to support investment in production outside China. “In July 2025, MP Materials secured a ten-year agreement with the US government establishing a price floor of USD110 per kilogram for its neodymium-praseodymium products, key inputs for permanent magnets. Such arrangements may improve revenue visibility and support investment in new capacity, although companies remain exposed to financing, operational and market risks.”
REXC seeks to track the Nasdaq Sprott Rare Earths Ex-China Capped Index (NSREXCU), which screens companies for significant rare earths exposure, measured by revenue or assets, across mining, separation, refining, and production.
Chinese securities are not eligible for inclusion. This excludes companies domiciled in China and securities classified as China A-Shares, B-Shares, H-Shares, N-Shares, Red Chips, P Chips or S Chips. The index is rebalanced quarterly and reconstituted semi-annually.
“Rare earths sit at the intersection of national security, energy security and technological leadership,” says John Ciampaglia, Chief Executive Officer, Sprott Asset Management. “As developed-market governments move to secure rare earths supply chains outside China, we believe companies across the ex-China rare earths value chain are strategically positioned. We are pleased to partner with HANetf to offer European investors targeted access to this opportunity through an ETF.”
Hector McNeil, Co-Founder and Co-CEO of HANetf, says: “We’re delighted to expand our partnership with Sprott through the launch of the Sprott Rare Earths Ex-China UCITS ETF. Rare earths connect several of the major investment themes shaping markets, from defence and energy security to electrification and advanced technology. Across these areas, securing access to essential materials is becoming an increasingly important consideration.
“REXC gives European investors a focused way to access companies involved in developing rare earths supply chains outside China. It complements Sprott’s existing uranium, copper, and silver products on our platform, broadening the opportunities available to investors looking at the materials underpinning these long-term themes.
“It is encouraging to see Sprott continue to build its European range with HANetf, bringing its specialist knowledge of critical materials to more investors through the UCITS ETF structure.”
