Lynas Rare Earths shares lift as Chinese export controls bite
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The news: Lynas Rare Earths’ share price is leading ASX 200 gains in morning trading as European car manufacturers face supply chain disruptions amid China’s export restrictions of several rare earth materials that are key inputs for electronics.
The numbers: Lynas shares had increased by 8.4% to $8.92 at 11:06am AEST and are up 36.7% year-to-date.
The context: China has implemented strict controls on the export of rare earth materials and related magnets since April in retaliation for US President Donald Trump’s tariffs.
European car makers are among those affected by the supply chain disruption, with Reuters reporting that some auto parts plants are suspending production lines.
China currently controls around 90% of rare earths production, and Lynas Rare Earths is one of a few companies producing the materials outside of the country. Last month, its Malaysian facility became the first outside of China to produce separated heavy rare earths.
