The Lynas Rare Earths Ltd (ASX: LYC) share price struggled in June, but it was not alone among S&P/ASX 200 Materials Index (ASX: XMJ) shares.
Lynas shares shed more than 11% in June. At the close of trade on Wednesday, they have dropped another 5.12%, finishing the day at $8.53 each.
So how did the Lynas Rare Earths share price perform in June?
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What happened in June?
Lynas Rare Earths shares fell in June, but they were not alone within the sector. For perspective, the ASX 200 Materials Index slid more than 12% during the month.
Lynas is mining the Mt Weld mine in Western Australia. The company touts it as one of the "world's premier rare earths deposits". Lynas also drives rare earths processing from the "world's largest" processing plant in Malaysia.
Investors appeared to sell down Lynas shares amid a wider market selloff in June, despite the company releasing some positive news.
Multiple shares involved in battery technology for the electric vehicle (EV) market fell during the month. Lithium share Pilbara Minerals Ltd (ASX: PLS) descended 22% in June while metals miner IGO Ltd (ASX: IGO) lost 21%.
In mid-June, Lynas USA, a subsidiary of the company, signed a US$120 million contract for a commercial rare earths separation facility.
The contract provides an opportunity for Lynas to operate in the United States. The deal will complement the company's light rare earth separation facility. It also involves working with the United States Department of Defense (DOD).
And this agreement appears to be attracting attention from China. According to recent reports, Lynas has recently been subject to a pro-China social media campaign. It calls for protests against the company's facility in Texas. The US DOD responded to this campaign, saying:
The Department of Defense is aware of the recent disinformation campaign, first reported by Mandiant, against Lynas Rare Earth Ltd…the department has engaged the relevant interagency stakeholders and partner nations to assist in reviewing the matter.
Lynas Rare Earths share price snapshot
Lynas Rare Earth shares have gained around 50% in the past year, but they have dived 16% year to date.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed about 9% in a year.
Lynas has a market capitalisation of about $7.7 billion based on today's share price.
