Why Eroad, Iluka, Lynas, and Vulcan Energy shares are tumbling today

These shares are ending the week in the red. But why?

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Key points

  • The S&P/ASX 200 Index is experiencing a downturn, with several shares falling significantly due to strategic shifts and external pressures.
  • One company is dropping after abandoning North American expansion plans, focusing instead on the ANZ market.
  • Another company's shares decline amid uncertainty in mineral sands sales due to operational issues with a key customer.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.7% to 9,002.9 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Eroad Ltd (ASX: ERD)

The Eroad share price is down 35% to $1.67. Investors have been selling this software company's shares today after it announced plans to refocus its growth strategy on the ANZ market and step back from its North American expansion plans. The company's CEO, Mark Heine, said: "I am incredibly excited by the opportunities ahead at EROAD, as we focus on what matters most to our customers and our growth." In addition, due to weakness in the US market, the company downgraded its revenue and cash flow margin guidance for FY 2026.

Iluka Resources Ltd (ASX: ILU)

The Iluka Resources share price is down 7% to $7.72. This morning, this mineral sands company withdrew its synthetic rutile guidance. It made the move due to uncertainty relating to an agreement to sell the commodity to UK customer Venator. This follows news that Venator's titanium dioxide (TiO2) manufacturing site at Greatham UK is idled and may remain in a shutdown state while a sale takes place.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is down 9.5% to $18.47. Investors have been selling off rare earths shares today following comments out of the Chinese government. According to CNBC, China's Ministry of Commerce has accused the US of creating panic over controls on rare earth exports and advised that it is open to trade talks. It is possible the market suspects that a deal will be reached on restrictions and that rare earths price could fall.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is down 8% to $6.58. This follows weakness in the lithium industry which has overshadowed the release of an announcement from the lithium developer this morning. Vulcan revealed that it has named Australian company, JordProxa, as the technology and equipment partner for the lithium purification, concentration, and conversion process for the Phase One Lionheart Project in Germany. Vulcan Energy's CEO, Cris Moreno, said: "JordProxa is a leading company in the purification and concentration of battery grade materials, and we are delighted to be using this world-class experience to deliver our flagship Phase One Lionheart Project."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.

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