Aust today: (extract) Lynas shares surged on US move Shares in...

Aust today: (extract)
Lynas shares surged on US move

Shares in rare earths producer Lynas Corp surged almost 17 per cent yesterday after the company said it had taken a step in expanding its business into the US defence market. Lynas shares went on a strong run, jumping 16.8 per cent to $1.63, following Wednesday’s announcement it had won a share of US Department of Defence funding to design a rare earths processing plant to supply the country’s defence sector with the critical minerals — key ingredients in the manufacture of high performance magnets, missile systems and other hi-tech equipment.

While the DoD decision is a key step in Lynas’s hopes to win government funding to build and operate a plant with US partner Blue Line, it is not the only company in the race. US-based rare earths miner MP Materials said it had also won funding to support the design of a rival production facility. And it is understood that other proponents, including a bid involving ASX-listed Arafura and US partner Texas Mineral Resources , also remain in contention for the final award of the tender even if they were not successful in the first round.