The richest Australian, Gina Rinehart, has stepped outside her comfort zone. The billionaire mining magnate has taken a stake worth over $1 billion in Elon Musk’s newly listed Space Exploration Technologies Corp. (NASDAQ:SPCX), better known as SpaceX.
“Having built two of the world’s top-10 largest companies by market capitalization is an extraordinary achievement … Elon has done what very few people in history have done,” Rinehart said, according to the AFR.
“He has not just imagined the future, he has built companies capable of delivering it, and helped to keep American technology at the forefront,” she added.
The investment from her firm, Hancock Prospecting, reflects both her admiration for Musk and her belief that Western nations will continue to lead in strategic technologies.
SpaceX IPO Draws Major Investor Interest
SpaceX’s highly anticipated initial public offering proved one of the most sought-after listings in recent memory, with the aerospace giant surging almost 20% on its market debut and reaching a valuation of about $2.1 trillion.
While Hancock did not disclose the exact size of its holding, the Wall Street Journal reported that Rinehart’s stake was worth more than $1 billion. The company also confirmed it had not bought or sold any additional shares after receiving its allocation in the record-breaking $75 billion IPO.
SpaceX debuted at $150 a share, above its $135 issue price, before closing at $192.50 after only two trading sessions.
Beyond Mining
For Rinehart, whose fortune Forbes places at around $25 billion, the investment fits within a broader strategy that increasingly extends beyond traditional mining.
The company is the world’s fifth-largest iron ore producer and has built significant positions in critical minerals through stakes in Lynas Rare Earths Limited (OTC:LYSDY), Liontown Resources, and Arafura Rare Earths Limited (OTC:ARAFF). Roughly 10% of Rinehart’s wealth is tied to rare earth investments.
However, she has also expanded aggressively into the United States. Most notably, Hancock holds a $860 million stake in rare-earths producer MP Materials Corp. (NYSE:MP), a company deemed strategically important to America’s supply chain security. Rinehart has also increased her exposure to sectors aligned with defense and advanced manufacturing as geopolitical competition intensifies.
Critical Mineral Synergies
Still, her SpaceX stake shows the growing interconnectedness between mining and frontier technologies.
The rare earth elements Hancock is backing are critical ingredients in the permanent magnets used across advanced technologies, from satellites and rockets to electric vehicles and robotics – notably light rare earths like Neodymium and Praseodymium.
Every expansion of SpaceX’s Starlink network and launch capabilities has the potential to increase demand for those materials, but synergies also extend to Tesla Inc. (NASDAQ:TSLA).
Hancock chief executive Garry Korte said the relationship between the two businesses could eventually extend beyond a shareholding.
“We also see the possibility of mutually beneficial arrangements between SpaceX and Hancock Prospecting’s significant critical minerals investments, as demand grows for the materials and infrastructure needed to support advanced technology,” Korte said.
Korte revealed Rinehart had held several meetings with Musk, describing SpaceX’s allocation of shares to Hancock as a significant endorsement.
“We look forward to the potential of working with the SpaceX team on its exciting journey,” Korte said.
SpaceX Price Action
SPCX Price Action: SpaceX shares were up 8.99% at $209.80 during premarket trading on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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