Shares of Australian rare earths miners, including Lynas and Iluka Resources, soared on Friday after U.S.-based MP Materials' a multibillion-dollar deal with the U.S. government to boost production of rare earth magnets.

The Defense Department on Thursday became the largest shareholder in MP Materials, which owns the only rare earth mine in the U.S., amid a surge in demand for rare earths mined in the U.S. as China has curbed its rare earth exports amid a trade war with the U.S.

Shares of the little-known mining company soared on Thursday on news that the Pentagon would become the largest shareholder.