Shares in Australian rare earths companies experienced significant declines on Tuesday as investors engaged in profit-taking following a recent surge in interest. This downturn coincides with easing trade tensions between the United States and China and comments from Treasury Secretary Scott Bessent suggesting a potential delay in China’s rare earth restrictions by up to one year.
Among the hardest hit were Lynas Rare Earths, which saw its stock price fall by 12.2 per cent. Australian Rare Earths experienced a 14 per cent decrease, while Australian Strategic Minerals dropped by 12 per cent at lunchtime on Tuesday. These declines mirrored an overnight dip in MP Materials, the operator of the only American rare earths mine, which fell by 7.4 per cent. MP Materials has decreased almost 34 per cent since reaching a record high of $US98.65 ($150.45) two weeks prior. In July, MP Materials received a $US400 million investment from the Pentagon to fund a new magnets plant.
Lynas Rare Earths is an Australian company focused on the exploration, mining, and processing of rare earth minerals, essential components in various high-tech applications. Australian Strategic Minerals is involved in developing strategic metal resources, including rare earths and critical minerals, to supply global markets. Lynas shares traded at approximately $16.10 on Tuesday, down more than 25 per cent from a recent high of $21.64 last Wednesday.
