Could this be why the Lynas share price is rallying 6% today?

The Lynas Rare Earths Ltd (ASX: LYC) share price is lifting on Thursday despite no news from the miner.

At the time of writing, the share is trading 5.74% higher at $8.11 apiece. Today’s trading volume is roughly 65% of the four-week average at 3.08 million shares.

Meanwhile, the price of the rare earth, neodymium is trading lower today at US$170,250 per tonne.

In broad market moves, the S&P/ASX 200 Materials index (ASX: XMJ) is strengthening today. It’s trading 2.2% in the green.

What’s up with the Lynas share price?

Despite no market-sensitive updates today, it’s noteworthy that the Sydney Energy Forum is on its final day.

The event brings together a raft of key stakeholders. These range from Prime Minister Anthony Albanese to industry specialists and company executives.

US Energy Department secretary, Jennifer Granholm, is among an extensive list of speakers that also includes Lynas CEO, Amanda Lacaze.

China’s domination in rare earths a risk

Rare earths was discussed at yesterday’s forum. International Energy Agency (IEA) executive director Dr Faith Birol was critical of China’s dominance in the global supply of rare earths, The Sydney Morning Herald reports.

Birol argued the country’s dominance could be a risk. She advocated for countries like Australia to speed up the development of the renewables supply chain.

Other speakers at the event echoed this sentiment on Wednesday. Various experts said the world needs to bump up its production of renewable energy and diversify the supply of key materials.

The opportunity for Lynas

Lynas is the only producer of rare earths at scale outside China. So, this kind of sentiment potentially bodes well for the Lynas share price.

It’s unlikely any speech at the event will impact the Lynas share price. However, it’s worth thinking about the content of the presentations given.

Combined with new government initiatives to support mineral exploration and discovery, it appears there’s a push to get resources out of the ground and into production.

The Lynas share price has held a 34% gain in the past 12 months despite a 26% loss in the year to date.

The post Could this be why the Lynas share price is rallying 6% today? appeared first on The Motley Fool Australia.

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More reading

• The Lynas share price soared 53% in the 2022 financial year. Here’s what happened
• Why did the Lynas Rare Earths share price tumble in June?
• Own Lynas shares? Here’s the latest challenge faced by the rare earths miner
• Mineral Monday: What you need to know about rare earths and which ASX shares are cashing in on them
• Guess which ASX 200 mining shares these experts are backing

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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