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Highlights:

  • LYC Q4 revenue rises to AUD 170.2 million, 10% above estimates.
  • LYC Quarterly REO production increases to 3,212 tonnes, up 47% YoY.
  • Lynas signs non-binding agreement with South Korea's JS Link on magnet production in Malaysia.

Lynas Rare Earths Ltd (ASX:LYC), the largest producer of rare earth elements outside China, reported fourth-quarter revenue ahead of expectations, driven by increased pricing across its rare earths product suite. The company also announced a preliminary agreement to co-develop a permanent magnet manufacturing facility in Malaysia with South Korea’s JS Link. Shares in Lynas rose as much as 4.2% in Thursday trading to AUD 10.57, the highest level since April 2022, outperforming the broader Australian mining index which fell 0.3% on the day. For the three months ended 30 June 2025, Lynas posted sales revenue of AUD 170.2 million, exceeding Visible Alpha consensus estimates of AUD 155 million by around 10%, according to financial firm Barrenjoey. The result marks a 24.6% year-on-year increase from AUD 136.6 million in the same period last year.

The company reported average selling prices of AUD 60.20 per kilogram across its rare earth products its highest pricing since the July 2022 quarter up from AUD 42.30/kg a year earlier. The increase reflects growing demand and tightening supply dynamics, including China’s export restrictions on critical rare earth materials. Lynas produced 3,212 tonnes of rare earth oxide (REO) in Q4, a 47% increase compared to 2,188 tonnes in the prior year’s corresponding quarter. The company said it expects monthly production volumes to continue growing as it benefits from recent capital investment across its operations.

On an investor call, CEO Amanda Lacaze noted heightened interest from downstream users and emerging magnet manufacturers amid changes in global trade patterns. She said Lynas has observed growing demand from customers across the electric vehicle, aerospace, and electronics sectors. While discussing Lynas’s competitive positioning, Lacaze highlighted the company’s status as the only major producer of both light and heavy rare earths, describing heavy rare earths as integral to its product differentiation. She further stated that current production volumes could not meet the full extent of customer demand, with the company effectively oversubscribed.

The outlook for rare earth prices was discussed in the context of the market becoming more “buoyant,” following policy-driven supply constraints and a growing number of magnet-related projects outside China. In a separate development, Lynas announced a non-binding agreement with South Korean firm JS Link to collaborate on the development of a permanent magnet value chain in Malaysia. The proposed project includes the construction of a 3,000-tonne neodymium magnet manufacturing facility near Lynas’s advanced materials plant in Kuantan.

Under the proposal, Lynas would supply both light and heavy rare earths to support magnet production. The agreement is subject to final commercial and regulatory approvals.