Sydney, Jan 21, 2026, 16:52 AEDT — Market closed.
- Lynas Rare Earths shares ended the day 6.7% higher, closing at A$16.27.
- Revenue in the December quarter climbed 43%, driven by higher prices even though output dipped.
- Investors are focused on Kalgoorlie’s power reliability and any government action on rare-earth price support.
Lynas Rare Earths Ltd (ASX: LYC) shares jumped 6.7% Wednesday to close at A$16.27, boosted by a strong quarterly revenue surge driven by rising rare-earth prices.
The rally comes amid a hot policy debate shaking the sector. “We don’t need governments to buy our product,” CEO Amanda Lacaze told analysts. This as Australia and others mull price supports to back non-Chinese supply chains. Reuters
Rare earths power the magnets in electric vehicles, wind turbines, and defense equipment. China remains the main player in refining and controls benchmark prices, meaning even minor policy changes or tweaks to export rules can quickly send prices—and related stocks—up or down.
Lynas reported quarterly gross sales revenue of A$201.9 million for the three months ending Dec. 31, marking a 43% increase year-on-year. This jump came as the average selling price climbed to A$85.60 per kilogram. However, total rare earth oxide production dropped to 2,382 tonnes from 3,993 tonnes in the previous quarter. Output of NdPr—neodymium-praseodymium, key for permanent magnets—fell to 1,404 tonnes, while dysprosium and terbium combined totaled 26 tonnes.
The company once more highlighted power outages at its Kalgoorlie processing plant in Western Australia. Planned maintenance also trimmed output at its Malaysian facility near Kuantan. This operational snag isn’t new, yet it keeps resurfacing because it directly impacts what Lynas can ship.
Management said it’s still developing an off-grid power solution for Kalgoorlie. The backup plan, which includes diesel generation, would ensure reliability but also sparks concerns about costs and emissions, especially as the company promotes its “outside China” supply as a premium offering.
Lynas pushed its growth story further, announcing it finished commissioning the Mt Weld expansion project this quarter. In December, the company also boosted the share of renewable electricity generated at the site, part of a broader effort to secure capacity and cut unit costs.
On the product front, Lynas is stepping up its focus on heavy rare earths. The company announced that it has begun work on an expanded heavy rare earth separation circuit at its Malaysia facility. First samarium output is slated for the June quarter of its fiscal year, with key equipment acquisitions planned by the close of the March 2026 quarter.
The policy angle ties Lynas to its peers. U.S.-listed MP Materials has already secured government-backed pricing support, and investors are watching closely for any sign Australia might introduce similar floor-price mechanisms for critical minerals.
The downside is straightforward. A drop in power reliability or a slowdown in rare-earth price gains could squeeze both volume and margins. Delays in policy backing would probably force projects back onto company balance sheets.
Traders eye two main factors in the coming session and week: rare-earth benchmarks from China and any new government moves on price floors or purchase deals. On the corporate front, all eyes are on whether Kalgoorlie’s power situation steadies enough to regain production momentum.
The next major checkpoint comes at the end of the March quarter on March 31. By then, Lynas expects to be deep into equipment procurement for its Malaysia heavy rare earth expansion—a phase investors will watch closely as a test of the company’s timeline and budget discipline.
