Join our daily newsletter At The Bell to receive exclusive market insights
- Lynas Corporation (LYC) looks set to be awarded a Phase 1 contract for a Heavy Rare Earth separation facility by the U.S Department of Defence
- Lynas today told shareholders that the DoD had informed it of its intent to grant the company the contract following its tender application in December
- Under the Phase 1 contract, Lynas and Blue Line would design and plan for the construction of the facility and could possibly lead to further contracts
- The U.S.-China trade war demonstrated the rare earth element supply chain vulnerabilities with most of the materials produced in China
- News of the contract was released after market close with shares finishing 4.45 per cent lower at $1.40 each
Lynas Corporation (LYC) looks set to be awarded a Phase 1 contract for a U.S.-based Heavy Rare Earth separation facility.
Lynas today told shareholders that the U.S Department of Defence (DoD) had informed it of its intent to grant the company the contract, following its tender application in December last year.
Under the Phase 1 contract, Lynas and Blue Line would design and plan for the construction of the facility. While there is no guarantee, if Phase 1 is successful, there is the potential for the company to secure further contracts with the DoD.
Lynas CEO and Managing Director Amanda Lacaze said the company is delighted to be a part of the project.
“We have confidence in the strength of our proposal and in our ability to meet the conditions set by the DoD for the development of a successful Heavy Rare Earths separation facility.”
“Today’s announcement creates the foundation for a facility in the U.S. that will assist the U.S. to avoid the supply chain vulnerability that has been exposed over the past year. We look forward to working with the DoD on Phase 1 of this important project,” she added.
The U.S.-China trade war highlighted the vulnerability of the rare earth supply chain with the majority of rare earth materials produced in China
Lynas is the only major rare earth producer outside of China with its Mount Weld deposit and concentration plant in Western Australia and its manufacturing facility in Malaysia.
News of the contract was released after market close. Company shares had already finished the session 4.45 per cent lower at $1.40 each.
