Lynas Raises $538 Million to Counter China’s Rare Earth Dominance

Australia’s Lynas Rare Earths Ltd has secured $538 million through an equity sale, earmarked for expanding stockpiles and processing plants while investing in magnet production facilities in Malaysia and the U.S. Rare earths, vital for electric vehicles, medical devices, and defense equipment, have become a focal point in global supply chain strategies.

Governments in the U.S., Australia, and Japan are collaborating with Lynas to reduce dependence on China, which currently controls the market through export restrictions. Washington has already intervened, acquiring a stake in MP Materials and establishing a price floor for rare earths to stabilize the sector and incentivize new supply sources.

Lynas, the largest non-Chinese producer, has evolved from light rare earths to heavy rare earths since 2013, specializing in materials for high-performance magnets. The company’s expansion comes amid profit pressures but aligns with broader efforts to diversify critical mineral supply chains.