Lynas’ output dips, revenue soars on rare earths prices
Australia’s largest producer of rare earths has recorded a strong increase in revenue despite a sharp decline in production as commodity prices soared.
Lynas Rare Earths generated gross sales revenue of $201.9 million in the December quarter despite a 30 per cent drop in production due to power outages at its processing plant in Kalgoorlie, Western Australia.
Lyna’s rare earth oxide production fell from 3993 tonnes to 2382 tonnes in the three months to September.
Revenue was slightly above the previous quarter and was up a whopping 43 percent over the same quarter in 2024.
Rare earth minerals are key to a wide range of technology applications, including wind turbine magnets, smartphones and solar panels, and Lynas is the largest producer outside China, accounting for 70 percent of global production.
Their prices soared in 2025 after Beijing significantly tightened controls on exports, prompting a global scramble to find other sources.
Average selling prices across all rare earth products were $85.60/kg compared to $49.2/kg a year ago.
The federal government has prioritized rare earths, along with antimony and gallium, as the first critical minerals to be included in the taxpayer-supported strategic reserve to counter pressure from China.
Lynas said the upward price pressure in the December quarter continued into January.
Investors, who were warned about the production shortfall in November, reacted positively to the report, sending Lynas shares up 4.6 percent to $15.94 in early trading.
As for the power outages behind the production drop at the Kalgoorlie processing plant, Lynas said the outages had stabilized following work by the electricity provider.
“Despite the short-term recovery, we continue to develop plans for an off-grid solution to ensure energy stability for the Kalgoorlie Plant,” the miner wrote in the update.
The report comes a week after influential CEO Amanda Lacaze announced she would retire after 12 years in the role.
The search for the miner’s replacement continues.
Lynas’ market capitalization grew under Ms. Lacaze’s management from about $400 million in 2014 to near $15 billion.
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