Lynas Rare Earths surges as China’s export curbs disrupt auto industry

Shares of Lynas Rare Earths (ASX: LYC) soared 11.8% to A$9.20 ($6) on Thursday, reaching their highest level since February 2023, amid escalating concerns over China’s tightened export controls on rare earth elements.As the largest rare earth producer outside China, Lynas is poised to benefit from the global scramble for alternative suppliers. China’s decision in April to impose export restrictions on rare earth magnets and related materials has disrupted supply chains worldwide. Major automakers, including BMW, Mercedes-Benz, and Ford, have reported production challenges due to the shortages. Earlier on Wednesday, Mercedes-Benz production chief Joerg Burzer said he was talking to top suppliers about building “buffers” such as stockpiles to protect against potential threats to supply. Mercedes was currently not affected by the shortage.BMW said that part of its supplier network was disrupted but its own plants were running as normal.Some European auto parts plants have suspended output, and industry groups warn of further disruptions if the situation persists.The export curbs are part of China’s broader strategy amid ongoing trade tensions with the United States. Currently, China produces around 90% of the world’s rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those parts.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com