Lynas Rare Earths (ASX: LYC) Positioned as a Critical Player in Clean Energy Shift

By Halo Technologies Research Team

Lynas Rare Earths, the largest producer of separated rare earths outside China, is poised to benefit from the global transition to clean energy. Operating from its high-grade Mount Weld mine in Western Australia, Lynas supplies vital elements like Neodymium and Praseodymium—core inputs in electric vehicles (EVs) and wind turbines. With a processing facility already established in Malaysia and new plants under development in Kalgoorlie and the United States, the company’s vertically integrated model positions it as a secure alternative to Chinese supply in a geopolitically sensitive market.

The surge in demand for permanent magnets, which are crucial for EV motors and wind turbine generators, is expected to drive rare earth consumption at a compound annual growth rate of 7–10% through 2030. These magnets offer unmatched efficiency and performance advantages, enabling higher torque and better range in EVs while requiring less maintenance in turbines. With permanent magnets used in nearly 80% of EV motors and 70% of new wind turbines, Lynas is strategically placed to ride this tailwind.

China currently dominates the rare earths market, mining over 60% and processing more than 80% of global supply. But growing trade tensions and past export restrictions have exposed the risks of overreliance on a single supplier. This has prompted countries like the United States to invest in alternative sources. Lynas has already secured substantial backing from the US Department of Defense, including a US$120 million contract to develop a rare earths separation plant in Texas—reinforcing its role in diversifying global supply chains.

Lynas is also scaling up at home, with a planned increase in NdPr production at Mount Weld from 7,000 to 12,000 tonnes per annum. The mine boasts strong reserves and high-grade ore, ensuring a long operational lifespan. The company maintains a robust financial position, with a net cash surplus and ongoing investments in production capacity, despite broader market headwinds.

Our analysts see multiple catalysts for Lynas, including rising demand, geopolitical tailwinds, and the successful rollout of new processing facilities. However, risks remain—from potential regulatory setbacks in Malaysia to technological shifts that could reduce reliance on rare earth magnets. Still, given its strategic importance and growth potential, Lynas is viewed as a compelling long-term investment, with our analysts assigning it a BUY rating.

See Our Full Report in the members area. Our analysts are constantly scouring the market and coming up with recommendations that give our members piece of mind when it comes to their portfolio. Enquire now to learn more about how we can help.

The HALO Investment Research software (‘the Software’) and www.halo-technologies.com (‘the Website’) are created, operated and controlled by HALO Technologies Pty Ltd ACN 623 830 866 ('HALO'). HALO is a Corporate Authorised Representative 001261916 of Macrovue Pty Limited ACN:600 022 679 AFSL 484264 ('Macrovue'). Macrovue is a wholly owned subsidiary of HALO. HALO is wholly owned by HALO Technologies Holdings Limited (‘HALO Tech’) ABN 73 645 531 219. We collectively refer to 'HALO', 'Macrovue' and 'HALO Tech' as ‘HALO', ‘Us’, We’, ‘Our’ and 'our representatives'. You may receive contact from Australian Stock Report Pty Ltd ABN 94 106 863 978 (ASR) AFSL 301682. ASR is the distributor of the HALO products offered by HALO. These companies are related entities with Amalgamated Australian Investment Group Limited ABN 81 140 208 288 (‘AAIG’). Please refer to the website for access to the HALO Technologies Financial Services Guide, Privacy Policy and Terms & Conditions.

All information contained in this communication is of general nature only; it is not intended or to be construed as an offer, solicitation or recommendation for any financial product and does not take into account your financial situation, objectives or needs. You should seek professional investment advice prior to making any decision to acquire or dispose of a financial product. Before acting on the information provided in this communication you should consider whether it is appropriate for you in light of your personal circumstances. Investing in financial markets and instruments involves risks, including loss of some or all capital. The payment of income and the return of capital are not guaranteed. Past performance is not an indicator of future performance. Forward-looking statements involve known and unknown uncertainties and other factors, and reliance should not be placed on such statements. 

To the maximum extent permitted by law, HALO, ASR, its related bodies corporate, officers, directors and employees, do not accept liability for any loss or damage arising out of or in connection with any reliance on the information presented in its reports, or any omission, inadequacy or inaccuracy in this material. While this article is based on information from sources that are considered reliable, HALO, ASR, its directors, and employees, do not represent, warrant or guarantee that the information contained in this article is complete or accurate. Any opinions and estimates are current as at the date of publication and subject to change without notice. The opinions and recommendations in these publication are based on a reasonable assessment by the author who wrote the report using information provided by industry resources and generally available in the market. Employees and/or associates of HALO or any of the other related entities may hold one or more of the investments reviewed in these reports. Any personal holdings by HALO, any related entities employees and/or associates should not be seen as an endorsement or recommendation in any way. No representation is given, warranty made, or responsibility taken about the accuracy, timeliness or completeness of information sourced from HALO and ASR. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate having regard to your particular circumstances. 

HALO, ASR and related entities and their associates and respective directors and staff each declare that they, from time to time, may hold interests in securities and/or earn fees, brokerage or other benefits from products and services mentioned in this communication.

Privacy Statement

As a consequence of this correspondence, we may collect information about employees, clients, or contractors (relevant persons). A copy of the Privacy Policy and Collection Statement can be obtained at www.halo-technologies.com.

If you have a complaint, HALO’s dispute resolution process can be accessed by telephone on + 61 2 8294 5993 or 1300 7420 292 or by email to www.compliance@halo-technologies.com.

Copyright applies to all content

HALO and the terms, logos and marks included in our content that identifies our services and products are proprietary materials. Copyright is applicable to all content produced by us, and in the information and material therein, is proprietary material owned by us unless otherwise indicated. Unless otherwise noted, all information provided on this site is provided by us and is subject to copyright and trademark laws. Logos and marks contained in links to third party sites belong to their respective owners.

Cyber Fraud Warning

This email is for the use of the intended recipient(s) only. If you have received this email in error, please notify the sender immediately and then delete it. If you are not the intended recipient, you must not use, disclose or distribute this email without the author's prior permission. The unauthorised use of this email may result in liability for breach of confidentiality, privilege or copyright.

We have taken precautions to minimise the risk of transmitting software viruses, but we advise you to carry out your own virus checks on any attachment to this message. We cannot accept liability for any loss or damage caused by software viruses.

Please telephone your contact person at HALO (on a separately verified number) should you be concerned about the authenticity of any email you receive from us. We will never otherwise contact you by email alone to ask you to transfer or deposit money, or to tell you of a change to our payment or bank account details.