Published by Global Banking & Finance Review®
Posted on June 5, 2025
2 min readLast updated: January 23, 2026
Lynas Rare Earths stock surged as automakers warned of China's export curbs on rare-earths, highlighting supply risks and geopolitical tensions.
By Rajasik Mukherjee
(Reuters) -Shares of Australia's Lynas Rare Earths climbed on Thursday to their highest point in more than two years, after global automakers warned that China's export restrictions on rare-earth materials could lead to production delays.
As the world's largest rare-earth producer outside China, Lynas is expected to benefit from concerns over global supply stability. Analysts suggest the situation could create favorable conditions for the Australia-listed company amid rising geopolitical tension and demand for critical minerals.
Lynas' stock jumped as much as 11.8% to A$9.2, touching its highest level since February 8, 2023. The move also marked the stock's biggest intraday percentage gain since October 24, 2023.
"Lynas' rally ... is a powerful reflection of the dual drivers at play today: escalating geopolitical tensions and surging demand for green technology," said Hebe Chen, market analyst at Vantage Markets.
"As China tightens rare-earth export controls, markets are pricing in supply risks — positioning Lynas ... as a strategic hedge."
China, which accounts for about 90% of global rare-earth production, imposed export restrictions in April on the strategic minerals in response to tariffs introduced by U.S. President Donald Trump.
The move raised alarms across industries reliant on the 17 rare-earth elements, which are critical for defense systems, electric vehicles, clean energy, and advanced electronics.
This week, German automakers added urgency to those concerns, warning that China's export restrictions on rare-earth materials pose a significant threat to their production lines and local economies.
Europe's auto supplier association CLEPA said several production lines have shut down after running out of supplies, while Mercedes-Benz said they were talking to top suppliers about building "buffers" such as stockpiles to protect against potential threats to supply.
Although rare-earth elements are relatively common in the earth's crust, China dominates the global supply chain by mastering the complex and environmentally challenging refining process.
The U.S. has only one operational rare-earth mine, but the bulk of its output is still shipped to China for processing, underscoring the strategic importance of non-Chinese producers such as Lynas.
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips)
Lynas Rare Earths' stock surged due to global automakers warning about risks from China's export restrictions on rare-earth materials, leading to concerns over supply stability.
Lynas' stock jumped as much as 11.8% to A$9.2, marking its highest level since February 2023 and its biggest intraday percentage gain since October 2023.
China's export restrictions on rare-earth elements have raised alarms across various industries, particularly affecting production lines in the automotive sector, as they rely heavily on these materials.
Analysts view Lynas as a strategic hedge due to its position as the world's largest rare-earth producer outside China, especially as geopolitical tensions escalate and demand for green technology surges.
China accounts for about 90% of global rare-earth production, which underscores the strategic importance of non-Chinese producers like Lynas.
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