Lynas Shares Surge Amid China Rare-Earth Export Curbs Disrupting Global Supply

Shares of Australia's Lynas Rare Earths surged to their highest level in over two years amid growing concerns about China's export restrictions on critical rare-earth minerals. China, which supplies about 90% of the world's rare-earth production, imposed these export controls in April as a response to tariffs introduced by U.S. President Donald Trump, leading to fears of supply chain disruptions affecting industries such as automotive manufacturing, defense, and green technology. German automakers and the European Automotive Supplier Association have reported production delays and shutdowns due to depleted rare-earth supplies, prompting companies like Mercedes-Benz to seek stockpile strategies. Analysts highlight that escalating geopolitical tensions and the surging demand for green technologies position Lynas as a strategic hedge against supply risks. Despite the natural abundance of rare-earth elements globally, China's dominance in processing technology and infrastructure maintains its control over the supply chain, making companies outside China, like Lynas, increasingly important to global supply stability. The situation underscores the geopolitical complexities influencing critical mineral markets and the global push towards securing alternative supply sources.