Lynas Rare Earths Ltd (ASX: LYC) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed down 13.9% yesterday, trading for $15.81.
That selling pressure was mirrored across most ASX rare earths stocks following news that China is likely to delay its threatened new rare earths export controls by at least a year amid improving trade negotiations with the United States.
In morning trade on Monday, Lynas shares are changing hands for $16 apiece, up 1.2%.
This comes on the heels of the ASX 200 miner's latest rare earths development news.
Image source: Getty Images
Lynas shares gain on $180 million rare earths facility plans
This morning, Lynas announced its plans to establish a new Heavy Rare Earths (HRE) separation facility at Lynas Malaysia.
The company said this will meet the "strong market demand" for a reliable source of Heavy Rare Earths oxides outside China.
Lynas shares could benefit longer term from the new HRE facility, which will have the processing capacity to separate up to 5,000 tonnes of HRE feedstock per year.
The company said the feedstock for the new HRE facility will come from its Mt Weld rare earths deposit, located in Western Australia. Mt Weld contains both Light and Heavy Rare Earths. Lynas said it will also secure feedstock from other sources yet to be developed, including ionic clay rare earths deposits in Malaysia.
The rare earths project comes with a price tag of around $180 million. Lynas said the project will be self-funded following the miner's successful equity raising in September.
The miner said the timeline for construction of the new facility is subject to regulatory approvals. First production of Samarium from Mt Weld feedstock is forecast for April 2026.
What did management say?
Commenting on the planned rare earths facility that could support Lynas shares longer term, CEO Amanda Lacaze said, "The new Heavy Rare Earths processing facility at Lynas Malaysia is a key element of our Towards 2030 growth strategy and contributes to the strength of our multi-product offering."
Lacaze cited strong global demand for Heavy Rare Earths, saying Lynas can be selective in where, and at what price, it sells Heavy Rare Earths oxides.
"Lynas has already concluded contracts for current Dy and Tb production on favourable terms that reflect the strategic value and the immediate availability of these materials," she said.
Lacaze added:
Lynas is part of a current functioning and reliable outside China supply chain. Lynas is the only outside China producer able to supply both Light and Heavy Rare Earth products. In 2025, we have proven our ability to separate the two in demand Heavy Rare Earth oxides, Dy and Tb, alongside our proven ability to produce LRE at scale.
Our plan to produce Samarium by April 2026 further demonstrates our ability to move quickly and efficiently in line with customer needs.
With today's boost factored in, Lynas shares are up a whopping 143% year to date.
