Iluka and Lynas soar as US govt invests in MP Materials' rare earths mine
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The news: Rare earths miners Lynas and Iluka Resources surged in early trading after US rival MP Materials announced a USD400 million ($609 million) deal with the US Department of Defense to expand the company's rare earths processing and magnet production.
The numbers: Iluka shares were up 26.6% to $5.04 while Lynas shares rose 17.6% to $9.75 at 11am AEST. The rally followed a 51% jump in MP Materials shares overnight.
The context: The US government investment will see it become the biggest shareholder in the country's only operational rare earths mine. The move is aimed at reducing America's dependency on imports of rare earths.
The Department of Defense will commit to MP Materials receiving a minimum price of USD110 per kilogram for its neodymium and praseodymium output.
The source: MP Materials media release
