Al Root

Rare earth stocks have been on a wild ride for months, boosted by a desire to break China's near monopoly and bring critical minerals business back to America.

They are moving again on Wednesday, but not because of hope or hype. Actual financial results are doing the job.

Tuesday, the Australian miner Lynas Rare Earths reported its fiscal second-quarter 2026 numbers. It generated gross sales revenue of 202 million Australian dollars ($137 million), up 43% year over year.

Rare-earth prices rose 74% year over year. Neodymium-praseodymium, or NdPr, production was 1,400 metric tons, up about 17% year over year. NdPr is a key material for magnets in electric motors.

"Operational execution....is improving structurally, suggesting ramp-up risk is external rather than internal," wrote Citi analyst Anna Wang on Tuesday. "Market dynamics are turning structurally favorable, driven by geopolitics and policy interventions that are enabling sustainable price floors and investor funding."

Lynas stock was up 6.7% in overseas trading. Its results appear to be giving the U.S. rare-earth sector a boost as well.

Shares of MP Materials, the largest rare-earth miner in the Western Hemisphere, traded higher initially, but fell back for a loss of 0.2% near midday. Shares of two aspiring rare-earth miners, USA Rare Earth and Ramaco Resources, were up 9.8% and 6.6%, respectively. The S&P 500 and Dow Jones Industrial Average rose 1.1% and 1%, respectively.

Trading in U.S. rare-earth stocks has been wild for months. In July, the Defense Department signed a blockbuster deal with MP that includes capital, price floors, and offtake agreements, significantly improving the outlook for the company and sector.

MP stock was at roughly $30 before the deal. It entered Wednesday trading above $68.

Threats of export restrictions by China, which dominates global rare- earth production, and deals mitigating those threats have led to significant volatility.

The 52-week high for MP stock is just above $100. Through midday trading, shares of USA Rare Earth were down 21% over the past three months, but up 63% over the past 12 months. Shares of Ramaco are down 43% over the past three months, but up 164% over the past 12 months.

Eventually, the stock prices should settle down as investors focus on results. That will be a welcome change.

Write to Al Root at allen.root@dowjones.com

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(END) Dow Jones Newswires

January 21, 2026 11:51 ET (16:51 GMT)

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