Lynas Falls After Historic Critical Minerals Agreement
Lynas Rare Earths (LYC) fell approximately 8% on Thursday following the announcement of a historic critical minerals deal between the Trump administration and the Federal Labor government.
The stock initially gapped higher at the opening but reversed more than 12% from its early high as sellers took control. Despite this, the deal is described as a
"shot in the arm" for the industry.
The pact, finalized on Monday during Albanese's trip to Washington, signals a new approach for miners to raise capital. It also highlights the increased geopolitical tensions between the US and China, as Beijing imposes export controls on rare earths, which are crucial for advanced technology, batteries, chips, and defense equipment.
Author's summary: Lynas falls 8% after critical minerals deal.