(Reuters) -Australia's Lynas Rare Earths ( LYSCF ) reported a nearly 6% decline in first-quarter revenue on Wednesday due to falling prices for strategic minerals and muted demand.

Rare earth prices sustained at low levels during the quarter with a slight improvement in neodymium and praseodymium (NdPr) prices towards the end, the company said.

The largest producer of rare earths outside China reported sales revenue of A$120.5 million for the three months ended Sept. 30, down from A$128.1 million in the same period last year.

The average selling price for the rare earth miner's product range came in at A$42.5 per kilogram (kg) compared with a restated number of A$46.9 per kg a year ago.

Total rare-earth oxide output for the first quarter was at 2,722 REO tons, compared to 3,609 REO tons reported last year.

Rare earth metals are essential for industries like electric vehicles and defense due to their powerful magnetic properties, which contribute to increased energy efficiency.