The Lynas Rare Earths Ltd (ASX: LYC) share price surged higher today despite no news from the company.
However, there was big news from the electric vehicle sector. The Australian Government released its Future Fuels Strategy today.
The strategy is expected to boost Australia's uptake of electric vehicles, of which rare earths are a critical component.
As of Tuesday's close, the Lynas share price is $7.80, 7.59% higher than its previous close.
Let's take a closer look at the news that might have sparked the market's interest in rare earth metals.
Image source: Getty Images
Australia's electric vehicle roadmap
The Australian Government laid out its roadmap to reduce emissions in Australia's transport sector today. It's expected to result in hybrid-electric vehicles making up 30% of new cars sold in Australia by 2030.
The strategy states that, as batteries become cheaper to make, the price of electric vehicles will fall.
That would likely result in more lithium-ion batteries being made, and result in a greater demand for battery minerals.
Further, the government is putting $250 million towards building electric vehicle charging stations. The investment will likely lessen 'range anxiety' for electric vehicle owners.
All-in-all, it's safe to assume the government's focus will increase Australia's uptake of electric vehicles.
Still, whether the government's Future Fuels Strategy has boosted the Lynas share price is hard to say, but it does sound good for the company's business.
Particularly, as Lynas Rare Earths claims to be the world's only large-scale rare earth producer outside of China.
And the Lynas is share price isn't alone in its gains on Tuesday.
Canadian rare earth producer Vital Metals Limited (ASX: VML) is also in the green on the ASX. Its share price gained 1.8% today.
Meanwhile, the share price of battery and graphite producer Novonix Ltd (ASX: NVX) surged 8.3% higher.
Lynas Rare Earths share price snapshot
Today's gains included, the Lynas share price is 18% higher than it was this time last month.
It has also increased 86% since the start of 2021.
