Shares in Australian rare earths miners experienced significant gains following renewed trade war tensions between the United States and China. The escalation comes after concerns that China, a dominant player in the rare earths market, would curb its exports of these crucial elements, which are vital for tech manufacturing. Lynas Rare Earths is an Australian company that explores, develops, and produces rare earth minerals. Iluka Resources is an Australian resources company focused on mineral sands exploration, project development, and operations.
Lynas shares broke through a 14-year high, more than doubling in value since July. This surge reflects investor confidence in the company’s position as a key supplier outside of China. Other rare earths miners also benefitted from the heightened demand and supply concerns.
Iluka Resources saw its shares jump by 4.7 per cent, while Alkane Resources experienced a more substantial increase, with its shares soaring by 10 per cent. The performance of these companies underscores the strategic importance of rare earths in the global technology supply chain and the potential impact of geopolitical factors on their market value.
These market movements indicate a strong investor response to the evolving dynamics of the rare earths sector, as companies outside of China may see increased demand for their products.
