Lynas Rare Earths Plans $825 Million Capital Raise for Global Expansion

Lynas Rare Earths, the largest producer of critical minerals outside China, has announced an $825 million capital raising initiative to expand its operations and strengthen non-Chinese supply chains. The fundraising includes a fully underwritten placement to raise $750 million and a non-underwritten share purchase plan targeting an additional $75 million, with shares priced at a 10% discount to recent trading levels. The funds will be used to expand the Mount Weld mine, increase processing capacity in Malaysia, and support partnerships aimed at diversifying the global supply of rare earths vital for high-tech and green energy applications. This move aligns with growing Western government efforts to reduce reliance on Chinese dominance in critical minerals essential for electric vehicles and advanced weaponry. Despite a 90% drop in annual profit to $8 million, Lynas reported a 16% revenue increase to $463.3 million, signaling resilience amid market challenges. The capital raise is seen as a strategic step to secure a more reliable and geopolitically secure supply of rare earth elements.