The Lynas Rare Earths Ltd (ASX: LYC) share price is higher on Thursday after the company released a key operational update.
At the time of writing, the Lynas share price is up 1.86% to $20.01. The stock has been a strong performer this year and is now up around 60% in 2026.
The gain comes even as the broader market moves lower. The S&P/ASX 200 Index (ASX: XJO) is down 1.5% amid escalating developments in the Middle East.
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Lynas produces first samarium oxide in Malaysia
In the announcement, Lynas confirmed it has successfully produced its first samarium oxide at its Malaysian operations.
This marks an important expansion of the company's heavy rare earths processing capability. Previously, Lynas produced separated neodymium and praseodymium products, which are widely used in permanent magnets.
With the addition of samarium oxide, Lynas is now increasing its range of separated heavy rare earth products.
Samarium is used in high-performance magnets, particularly in electronics and defence-related applications. The company noted that the product is already in demand from customers requiring advanced magnet materials.
How this fits into Lynas' long-term growth plan
The production milestone forms part of Lynas' broader plan to expand its heavy rare earths capabilities.
The company has previously outlined plans to develop heavy rare earth separation at its Malaysian facility as part of its long-term growth strategy.
This work sits within Lynas' "Towards 2030" plan, which is focused on increasing production and expanding its product mix.
Management confirmed that samarium oxide production was delivered ahead of schedule, marking the first step in this expansion.
Lynas is now working to add further heavy rare earth products, including dysprosium and terbium, which are used in high-performance magnets.
The company said initial heavy rare earths production capacity is expected to be available within the next 2 years.
Strong share price performance in 2026
Despite some volatility in recent months, Lynas shares have delivered strong gains over the past year.
The stock is up more than 160% over the past 12 months and around 60% since the start of 2026.
The company currently has a market capitalisation of approximately $20 billion and remains one of the largest rare earth producers outside China.
What to watch next
Today's update shows Lynas is moving ahead with its expansion plans.
The next focus will be progress in heavy rare earth production and updates on new products.
Progress on its expansion plans and new production capacity will be key in the months ahead.
