The materials sector is leading the ASX 200 today. What's going on with the Lynas (ASX:LYC) share price?

It's been a bumpy day for Lynas shares so far. Here are the details

The S&P/ASX 200 Index (ASX: XJO) is having a disappointing day of trading so far this Thursday. The ASX 200 is currently down 1.17% to 7,337 points.

However, ASX 200 resources shares are bucking the trend. Even though the ASX 200 is in the red, resources shares such as BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG) are all giving investors some healthy gains today. Fortescue in particular is up more than 8% at the time of writing.

It's not just the big iron ore miners either. Gold miners like Newcrest Mining Ltd (ASX: NCM) are also seeing healthy share price rises today.

But one ASX 200 resources share that is wobbling today is Lynas Rare Earths Ltd (ASX: LYC). The Lynas share price had a scare this morning when the company opened at $7.60, down almost 1.5% from yesterday's closing price. However, it has since rebounded. It jumped as high as $7.88 but is currently sitting at $7.78, up 0.91% for the day so far.

a man in a hard hat and checkered shirt holds paperwork in one hand as he holds his hands upwards in an enquiring manner as though asking a question or exasperated by uncertainty.

Image source: Getty Images

What's going on with the Lynas share price today?

Well, we haven't had much in the way of news or announcements out of the company lately. Lynas' last major update was its quarterly activities report for the first quarter of the 2022 financial year back on 22 October.

As my Fool colleague Brooke covered at the time, this saw Lynas report $121.6 million in revenue, its second-highest figure on record. The company also told investors that "global demand for rare earth materials is very strong", and the company is expecting demand to continue to ramp up into 2022.

However, Lynas also disclosed that COVID restrictions in Malaysia had also led to Lynas having to close its Malaysian cracking and leaching plant for 11 days of the quarter just gone. The Lynas share price sunk on the announcement.

Recent news bodes well

In other news, we got another minor development at the start of this month for Lynas. As we also reported at the time, the Lynas share price got a boost when Japan Australia Rare Earths (JARE) reconfirmed its long-term support for Lynas.

JARE is a special purpose company created by Japan Oil, Gas and Metals National Corporation together with Sojitz Corporation. JARE is a major partner with Lynas, providing funding and loan facilities for the company's business operations. This reaffirmation of the partnership sent the Lynas share price up by more than 3% at the time.

So it's unclear why Lynas has had such a volatile day of trading so far on Thursday. However, there is a lot going on with this company at the moment, so perhaps investors are just trying to take it all in.

The Lynas share price is up more than 86% year to date in 20021 so far, and up around 148% over the past 12 months. At the current Lynas share price, this company has a market capitalisation of almost $7 billion.

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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