[SMM Flash News: Plan for Rare Earth Price Floor Boosts Shares of Lynas and Iluka] Canberra has expressed support for the US-led initiative to set a minimum price for rare earth elements, sparking significant investor interest in Australian rare earth producers Lynas Rare Earths Ltd (Lynas) and Iluka Resources Ltd (Iluka). Consequently, shares of both companies have risen on above-average trading volume.
In response to investors' positive reaction to the West's efforts to reduce reliance on China's rare earth supply chain, Lynas's share price increased by 5% to AUD 11.84, while Iluka's share price also rose by 4.7% to AUD 5.57.
Last week, the US Department of Defense reached a cooperation agreement with MP Materials, a move that was publicly welcomed by Lynas and Iluka. Iluka is actively developing the Eneabba rare earth refinery in Western Australia and explicitly mentioned in its quarterly report that the minimum price of $110 per kg for Pr-Nd (NdPr) products reflects "the US government's recognition that higher prices for separated rare earth oxides are crucial to ensuring the establishment of sustainable Western and other similar supply chains." This statement has further heightened market expectations for Australian rare earth producers.