It's been a fairly positive session all round so far this Wednesday. At the time of writing, the S&P/ASX 200 Index (ASX: JXO) has gained a decent 0.1% and is now back to just under 7,000 points. But one ASX 200 standout performer has been the Lynas Rare Earths Ltd (ASX: LYC) share price.
Lynas shares have had a very pleasing day thus far on Wednesday. The rare earths producer has gained a market-beating 0.81% so far this session (after peaking over 2% earlier in trade) putting the company at $8.71 a share.
The Lynas share price has been on the move in a big way recently. Over the past month alone, the company has added an impressive 15.2% to its market value.
So what might be going on with Lynas today that has put investors in such a good mood with the company's shares?
Why is the Lynas share price outperforming on Wednesday?
Well, there hasn't been much in the way of fresh news out today from the company itself.
But we have had some news that could be impacting Lynas shares. According to a report in the Australian Financial Review (AFR), resources minister Madeleine King has just indicated that the government has no plans to block the export of critical minerals like rare earths to China.
This is despite the well-publicised plans to expand supply chains outside China that both the Australian, American and other governments have committed to.
Here's some of what a spokesperson for King said:
Commercial offtake agreements are a matter for individual companies and must comply with relevant Australian laws and regulations. The Government does not comment on commercial arrangements for individual companies…
Increased domestic and foreign investment in Australia's critical minerals sector, as well as commercial offtake agreements, will help Australian projects off the ground and establish diverse sources of supply.
This was reportedly in response to Lynas' fellow rare earths company VHM Limited's plans to sell 60% of the product from its proposed Victorian mine to the Chinese company Shenghe.
So this news could well be helping lift the Lynas share price today.
This expert is bullish on Lynas shares
We also had some positive views on Lynas shares from an expert investor recently, which could be playing a role.
As my Fool colleague Tony covered just yesterday, BW Equities equity salesperson Tom Bleakley named Lynas as one ASX share to buy right now.
Here's some of what he said:
The company delivered a strong fiscal year 2022 result… we like the company's outlook…
Lynas has one of the biggest high-grade rare earth deposits in the world… Given the scale of its resource, it has the capacity to increase supplies to meet future demand. Rare earths are a key mineral used in electric vehicles.
So it could be this combination of factors that is pulling investors towards the Lynas share price right now. It will be interesting to see what happens next with this popular ASX 200 share.
