Prices of rare earths are expected to rise due to increased Western demand, as shown by a recent U.S. deal with Australian company MP Materials. The U.S. Department of Defense agreed to be the largest shareholder, offering a floor price of $110 per kilogram, nearly double the current Chinese market level. Lynas CEO Amanda Lacaze believes prices could go even higher. Japanese magnet makers have increased output due to Chinese supply shortages, leading to Lynas working with them to develop new customers. Lynas beat revenue estimates for the fourth quarter, with a 10% increase in selling prices for rare earth products. Shares rose 4.2% to A$10.57, the highest level since April 2022. Lynas posted sales revenue of A$170.2 million for the quarter, up from A$136.6 million a year earlier. The company’s total rare-earth oxide output for the fourth quarter was at 3,212 REO metric tons compared to 2,188 REO tons reported a year ago. Lynas also announced a deal with South Korean JS Link to develop a permanent magnet value chain in Malaysia, including plans for a 3,000-ton neodymium magnet manufacturing facility.

Read more at Yahoo Finance: Lynas sees higher rare earths prices after US backs MP Materials