SYDNEY, Jan 28, 2026, 17:24 AEDT — Market closed
- Lynas climbed even as the wider ASX slipped
- Stronger core inflation pushed up expectations for a Feb. 3 RBA rate hike
- The U.S. support for USA Rare Earth highlighted the growing influence of policy in shaping the sector
Lynas Rare Earths Limited (ASX:LYC) closed Wednesday 1.2% higher at A$16.20. The stock fluctuated from A$15.82 up to A$16.25, with around 5.2 million shares changing hands. Meanwhile, the S&P/ASX 200 edged down 0.1% to 8,933.9.
Rates carried most of the momentum. Australia’s trimmed-mean CPI, the core gauge the central bank tracks, climbed 0.9% this quarter and 3.4% year-over-year. That lifted swaps to imply a 73% chance of a rate hike on Feb. 3. “Demand is running ahead of supply,” noted Adam Boyton, ANZ’s head of Australian economics. Reuters
Rare-earth policy news added fresh momentum. USA Rare Earth revealed the Trump administration plans to support a $1.6 billion funding deal, following a Reuters report that the Commerce Department would acquire a 10% stake; CEO Barbara Humpton asked pointedly, “What would be the cost of having access to nothing?” These lanthanide elements are vital for high-performance magnets used in electric vehicle motors and wind turbines. Reuters
For Lynas, that combination is crucial. As one of the rare big producers outside China, its stock reacts sharply to government talk on supply chains and shifts in miner sentiment driven by interest rates.
In its December-quarter report released last week, Lynas said NdPr output—a crucial magnet material—dropped about 30% from the previous quarter. The decline followed power disruptions in Kalgoorlie and major scheduled maintenance in Kuantan, Malaysia, though the average selling price climbed to A$85.60 per kilogram. “We are continuing to develop plans for an off grid solution to ensure energy stability,” CEO Amanda Lacaze wrote. ASX Announcements
Production remains the key risk. In November, Lynas flagged that the Kalgoorlie power outage would wipe out roughly a month of oxide output, underscoring how swiftly volumes vanish when electricity fails.
Leadership remains a key focus for investors. Lacaze announced she plans to retire at the end of the financial year, prompting the board to begin looking for her replacement.
The RBA’s Feb. 3 rate decision is next on the calendar and could quickly shake the Australian dollar and the wider market. In rare earths, eyes are on whether U.S. funding deals gain traction—and whether Lynas shows any new evidence it’s regained operational stability.
