JS Link deal strengthens Lynas' downstream integration, Jefferies says

Lynas Rare Earths

07/07/2026 19:45

** Jefferies says Lynas Rare Earths' LYC.AX agreement with JS Link shows a controlled approach to downstream integration without committing the balance sheet or operating model to a capital-intensive, execution-heavy part of the value chain
** Adds that the deal strengthens Lynas' downstream channels while leaving capital available for upstream growth in its higher-margin core businesses of mining and separation, and potential for HRE consolidation
** Lynas, world's largest rare earths producer outside China, on Tuesday said it had signed a partnership deal with South Korea's JS Link 127120.KQ to develop a magnet factory in Malaysia
** Jefferies says JS Link improves NdPr demand visibility and downstream alignment, and continues to demonstrate Lynas' strategic position as a key ex-China supplier of separated rare earths
** Brokerage reiterates "buy" call for Lynas, price target A$22
** Lynas up 35.9% so far this year, as of last close

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com;))