In a significant corporate milestone, Australian rare earths producer Lynas Rare Earths is set to join the S&P/ASX 50 index on December 22, 2025. This inclusion among the nation’s fifty largest listed firms caps off a remarkable year for the company, whose share price has more than doubled over the past twelve months.
A Technical Catalyst for Demand
The announcement from S&P Dow Jones Indices on December 5 confirmed Lynas and Washington H. Soul Pattinson as the new entrants, replacing Amcor and Mirvac Group. This move is far from symbolic. With a market capitalization exceeding 14 billion Australian dollars, Lynas has grown into one of the heavyweight constituents of the Australian exchange.
The practical implication for investors is clear: index-tracking funds and institutional investors mandated to replicate the S&P/ASX 50 will be compelled to purchase Lynas shares. This technical demand is anticipated to provide additional support for the stock in the weeks surrounding the official inclusion date, just before the market opens on December 22.
Underpinning the Spectacular Share Performance
The fundamental story behind the share price surge of 103% in the last year—vastly outperforming the S&P/ASX 200’s modest 3% gain—is built on solid ground. Geopolitical shifts are a primary driver, as Western industrial nations actively seek to diversify their supply chains and reduce reliance on Chinese rare earths. Lynas, as the largest producer of these critical materials outside of China, stands as a direct beneficiary.
Should investors sell immediately? Or is it worth buying Lynas?
Furthermore, the company achieved a pivotal operational breakthrough in 2025. It became the first non-Chinese producer to successfully commence commercial-scale production of heavy rare earth oxides, including Dysprosium and Terbium. This expansion of its product portfolio addresses a segment of the market with particularly high strategic value.
Analyst Confidence and Financial Projections
Market experts have taken note of this strengthened position. Analysts at UBS upgraded their rating on Lynas shares to “Strong Buy” on November 19, a move followed closely by Goldman Sachs the previous day.
Their optimism appears well-founded according to financial forecasts. Data from S&P Global Market Intelligence indicates that analysts, on average, project the company’s revenue to double for the 2026 fiscal year. This anticipated growth is attributed to both expanding production capacity and a recovery in rare earths prices, suggesting the company’s operational progress is aligning with its market valuation.
The impending index inclusion adds a new layer of momentum, potentially amplifying the existing positive trajectory for this already high-performing stock.
Ad
Lynas Stock: Buy or Sell?! New Lynas Analysis from February 7 delivers the answer:
The latest Lynas figures speak for themselves: Urgent action needed for Lynas investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
Lynas: Buy or sell? Read more here...
