Gina Rinehart will deepen her financial backing of Lynas Rare Earths Ltd (ASX:LYC, OTC:LYSCF) as the company accelerates plans to diversify its rare earths business into permanent magnet manufacturing and strengthen its position outside China's dominant supply chain.
Rinehart, who holds an 8.5% stake in Lynas, is committing to her full entitlement in the company’s A$750 million equity raising and will take up additional shares. The raising, priced at A$13.35 per share, aims to increase production of neodymium-praseodymium (NdPr) and other key rare earths, and support the development of downstream magnet-making capabilities.
This comes as the United States and Australian governments introduce measures to support non-China rare earth supply chains. In the US, the Department of Defense (DoD) recently guaranteed MP Materials—a fellow rare earth producer in which Rinehart is a shareholder—a minimum NdPr price of US$110 per kilogram for a decade.
Magnet ambitions and global partnerships
Lynas is positioning itself to play a greater role in downstream markets amid rising demand for permanent magnets used in electric vehicles, wind turbines, and defence. Chief executive officer Amanda Lacaze said the company plans to partner with established magnet manufacturers through joint ventures, equity investment or direct collaboration.
“We need to move at pace to maximise value from existing assets and create further value from market opportunities,” Lacaze said, noting the rare earths market is “rapidly evolving.”
The company’s new five-year strategy, “Towards 2030,” includes lifting annual NdPr output to 12,000 tonnes, producing more heavy rare earths at its Malaysian facility, and expanding feedstock supply through new clay projects in Australia and Malaysia.
Uncertain future for US heavy rare earths plant
Lynas continues to work with the DoD on a potential offtake agreement linked to its proposed heavy rare earths separation plant in Seadrift, Texas. However, the company noted there was no certainty around whether the project would proceed, or in what form.
Both Lynas and MP Materials are receiving US government support for rare earth initiatives in Texas, though MP Materials appears further advanced, recently halting NdPr exports to China and progressing its second magnet plant in partnership with the DoD.
Revenue, profits and pricing trends
For FY2025, Lynas reported a net profit of A$8 million, down from A$84.5 million a year earlier. Revenue climbed to A$556.5 million from A$463.3 million, underpinned by a rebound in NdPr pricing.
Prices for NdPr in China rose from US$44/kg in June 2024 to US$55/kg by June 2025, and continued climbing in the September quarter to approximately US$75/kg.
In addition to the institutional placement, Lynas has launched a A$75 million non-underwritten share purchase plan. Longstanding offtake and finance support from Japan remains a critical component of the company’s non-China supply strategy.