Shares of Australia's Lynas Rare Earths climbed on Thursday to their highest point in more than two years, after global automakers warned that China's export restrictions on rare-earth materials could lead to production delays.

As the world's largest rare-earth producer outside China, Lynas is expected to benefit from concerns over global supply stability. Analysts suggest the situation could create favorable conditions for the Australia-listed company amid rising geopolitical tension and demand for critical minerals.

Lynas' stock jumped as much as 11.8% to A$9.2, touching its highest level since February 8, 2023. The move also marked the stock's biggest intraday percentage gain since October 24, 2023.

"Lynas' rally ... is a powerful reflection of the dual drivers at play today: escalating geopolitical tensions and surging demand for green technology," said Hebe Chen, market analyst at Vantage Markets.

"As China tightens rare-earth export controls, markets are pricing in supply risks — positioning Lynas ... as a strategic hedge."

China, which accounts for about 90% of global rare-earth production, imposed export restrictions in April on the strategic minerals in response to tariffs introduced by US President Donald Trump.

The move raised alarms across industries reliant on the 17 rare-earth elements, which are critical for defense systems, electric vehicles, clean energy, and advanced electronics.

This week, German automakers added urgency to those concerns, warning that China's export restrictions on rare-earth materials pose a significant threat to their production lines and local economies.

Europe's auto supplier association CLEPA said several production lines have shut down after running out of supplies, while Mercedes-Benz said they were talking to top suppliers about building "buffers" such as stockpiles to protect against potential threats to supply.

Although rare-earth elements are relatively common in the earth's crust, China dominates the global supply chain by mastering the complex and environmentally challenging refining process.

The US has only one operational rare-earth mine, but the bulk of its output is still shipped to China for processing, underscoring the strategic importance of non-Chinese producers such as Lynas.