Carbonatite-hosted rare earth element (REE) deposits are the primary source of the world’s light REEs. The Mount Weld REE deposit in Western Australia is hosted in a lateritic sequence that reflects supergene enrichment of the underlying carbonatite. Water-rock interaction is a key to the formation of this world-class deposit. REE enrichment in the laterite is controlled by the breakdown of primary minerals, the release and transport of REEs, and the formation of secondary minerals. Secondary REE-bearing phosphate minerals are the primary REE-host phases in the laterite ore with monazite as the dominant phase; other REE-bearing phases include rhabdophane, cerianite, churchite, florencite, and crandallite subgroup minerals. Profiles through the laterite show that in the REE-rich zone, apatite and primary calcite and dolomite have broken down such that the loss of Ca and Mg, as well as Si and K, leads to a relative increase in the REEs. Sequestering of REEs in secondary mineral phases formed by groundwater further enhances the REE concentration.