MELBOURNE - Australian-listed miners of heavy rare earths rallied on Monday, shrugging off major selloffs across other markets, on bets Western governments would renew their push to develop a separate supply chain after top producer China set down export controls.

Shares of Lynas Rare Earths he world's top rare earths producer outside China, traded up 3.5% by midday AEST (02:00 GMT) while shares in Australia-based heavy rare earths developer Northern Minerals surged 9.5% and Meteoric Resources, which has project in Brazil, rallied 3.3%.

China placed export restrictions on rare earth elements on Friday as part of its sweeping response to US President Donald Trump's tariffs, squeezing supply to the West of minerals used to make weapons, electronics and a range of consumer goods.

Rare earths are a group of 17 elements and heavy rare earths are those with higher atomic weights, including dysprosium and yttrium, which are generally less abundant and more valuable.

"The news from China highlights Lynas's strategic capabilities which are currently underpriced by the market," said Barrenjoey analyst Dan Morgan.

China produces around 90% of the world's rare earths, a group of 17 elements used across the defence, electric vehicle, energy and electronics industries.

The export curbs affect shipments to all countries, not just the US, and include not only mined minerals but magnets and other finished products that will be difficult to replace, analysts said.

Meteoric Resources said in an exchange filing on Monday that it planned to produce six of the elements subject to export controls at its Caldeira project, which it expects to come on line during the second half of 2027.

Lynas did not immediately respond to a request for comment.

Separately, Australia's Prime Minister Anthony Albanese, who is facing a May 3 election, raised the prospect of setting up national stockpiles of critical minerals, which were likely to include rare earths.

Albanese said last week that "a Labor Government will establish a Critical Minerals Strategic Reserve – and I will have more to say on this."

Analysts said they were waiting on further details since typically consumers, rather than producers, would tend to stockpile inventories in case of supply chain disruptions.