Amidst a volatile rare earth market, both Lynas, based in Western Australia, and MP Materials, operating from California’s Mountain Pass, have been grappling with daunting challenges spawned by the steep decline in rare earth prices.

MP’s shares have nosedived by over 50% in the past year, whereas Lynas witnessed a staggering decline of approximately 40%.

The recent embargo imposed by China on the export of rare earth extraction and separation technologies has been sparking fervid speculation, apparent in its quest to sustain its market supremacy amidst worsening relations with the US – a suitor thirsty for the rare earth elements.

Last year, in an interview with the AFR, Lynas Managing Director Amanda Lacaze divulged the company’s traction in the mergers and acquisitions arena. She fervently reiterated the necessity for a heavy rare earth source to complement its Australian operations and meet the commitments laid out by the US Department of Defense. Noteworthy is the Pentagon’s funding for a Lynas-operated downstream processing plant in Texas.

MP Materials, headquartered in Las Vegas, also flaunts a similar partnership with the Pentagon, bolstered by a contract designed to elevate the supply of heavy rare earths.