Friendshoring Aussie Rare Earths

• As discussed in my April note Know Your Rare Earth Elements As China Restricts Exports, China escalated restrictions on the export of rare earths - to all countries.

• Last week, China ramped up export controls on five additional rare earths; in tandem with related technologies.

• The US recently struck a deal MP Materials (MP US) on light rare earths. The possibility of the US taking equity stakes in Australian processing projects could become a reality.

This insight is labelled bullish on Lynas Corp Ltd (LYC AU) as I’m not bearish here.

---

The NEW Rules

• Under the somewhat innocuous “announcement No. 62 of 2025”, foreign companies will require “Beijing’s approval to export magnets that contain even trace amounts of China-sourced rare earth materials, or that were produced using the country’s extraction methods, refining or magnet-making technology“.