LINRF - Australian rare earth stocks surge on MP Materials' multi-billion-dollar US deal, led by Lynas and Iluka

Lynas Rare Earths ( OTCPK:LYSDY ) ( OTCPK:LYSCF ), the largest rare earths producer outside China, soared as much as 20% to its highest level since mid-August 2022, on track for its best trading day since April 2020 after MP Materials' ( MP ) deal with the U.S. government. ...

Iluka Resources ( OTCPK:ILKAF ) ( OTCPK:ILKAY ) surged 27%, marking its largest intraday gain on record.

The stocks were the top gainers on the benchmark ASX 200 Index ( AS51 ).

MP Materials ( MP ) Thursday announced a public-private partnership with the U.S. Department of Defense to accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce dependency on foreign sources. MP shares were up +4.13% Friday premarket.

Jefferies upgraded Lynas to "buy" from "underperform" and hiked its price target to A$10 a share from A$6.40. Lynas was last trading at A$9.67.

"This signals a strong U.S. push for rare earth magnet independence, lifting upside risk across the rare earth pricing complex. Lynas appears to be the next logical beneficiary of government market support," Jefferies said in a note.