Lynas Rare Earths shares fell 8.35% after the company agreed to acquire Brazilian rare-earth developer Meteoric Resources in an all-share transaction valued at A$968 million ($672 million). The deal gives Lynas a foothold in Brazil’s growing rare-earths industry through the Caldeira Rare Earth Project in Minas Gerais, which Lynas describes as the largest known ionic-clay rare-earth oxide resource outside China containing both light and heavy rare earths. Caldeira would increase Lynas’ Measured and Indicated total rare-earth oxide resources by about 79% and reported Ore Reserves by about 26% on a pro forma arithmetic basis. Meteoric shareholders would receive 0.0207 Lynas shares for each Meteoric share and own about 5.9% of Lynas on a fully diluted basis after completion. Lynas intends to preserve its balance sheet and liquidity while providing Meteoric with up to A$110 million in interim funding. The transaction comes as companies and governments seek to expand rare-earth production outside China, which dominates processing of minerals used in electric vehicles, consumer electronics and defense systems. A scheme meeting is expected in January 2027, with implementation targeted for March 2027, subject to approvals and other conditions.