Lynas Rare Earths Ltd (LYC.AU) saw its stock price soar 12.92% during intraday trading on Wednesday, following the announcement of a significant revised supply agreement with Japanese partners.

The Australian rare earths producer has secured a floor price of US$110 per kilogram for neodymium-praseodymium sold to Japan, matching a price guaranteed by the Pentagon to its American rival MP Materials. Under the revised agreement, Japan Australia Rare Earths will commit to buying 5,000 metric tons of the material annually through 2038.

The deal also includes commitments for heavy rare-earth oxides, with the joint venture agreeing to purchase half of all such materials Lynas produces. This agreement provides earnings stability and reduces price volatility for Lynas amid intensifying global competition to secure rare earth supplies outside of China's dominant production.