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Highlights
- On the sectoral front, all 11 sectors are lower today (June 17).
- Shares of Lynas were trading 4.38% lower at AU$8.52 each on ASX.
The S&P/ASX 200 is sharply lower today, dropping 155.90 points or 2.37% to 6,435.20 at 11.29 AM AEST. Over the last five days, the index has lost 7.17% and 12.55% over the last 52 weeks.
On the sectoral front, all 11 sectors are lower today. The session's top sector, information technology, was lower by 3.93% at 12.56 PM AEST. ASX 200 Materials Index was also 2.76% or 466.40 points lower today at 16,442.70 points at 12.58 PM AEST.
Meanwhile, shares of Lynas Rare Earths Limited (ASX:LYC) were trading 4.38% lower at AU$8.52 each on ASX today at 11.19 AM AEST.
Recent development
On June 14, 2022, Lynas, through its wholly owned subsidiary Lynas USA LLC, signed a follow-on contract for approximately US$120 million with the US Department of Defense (DoD). The contract is to establish a first-of-its-kind commercial Heavy Rare Earths (HRE) separation facility in the United States.
This mutually advantageous agreement will help Lynas create a presence in the United States, including manufacturing separated Heavy Rare Earth products to complement its Light Rare Earth product line. As a result, the US industry will have access to domestically manufactured Heavy Rare Earths, which are currently unavailable and critical to creating a reliable supply chain for industries such as electric vehicles, wind turbines, and electronics.
Source: © Emily2k | Megapixl.com
The Heavy Rare Earths separation plant will be co-located with the projected Light Rare Earths separation facility (announced on 22 January 2021), which is sponsored and half-funded by the US DoD Title III, Defense Production Act office.
Also Read: IPL, GNC, LYC: Why these ASX shares rose over 2% despite weak market
The project is intended to be constructed within an existing industrial region on the Gulf Coast of Texas and operational in the financial year 2025, following a thorough site selection procedure.
Lynas Rare Earths Limited is a Malaysian firm that specialises in rare earth ore extraction and processing and rare earth deposit exploration, especially in Australia and Malaysia. Its assets include Mt Weld, Lynas Malaysia, Kalgoorlie and Lynas USA.
Stock performance: Despite the major US deal, Lynas’ shares have been falling. The shares have lost about 16% on a YTD basis. However, the company has provided 56% returns to its investors in the last one year.
Also Read: Lynas (ASX:LYC) to establish operating footprint in the US with US$120M contract
