- Through its U.S. subsidiary, Lynas Rare Earths (LYC) and the U.S. Government have entered an agreement to build a light rare earths separation plant in Texas
- This deal follows a contract signed in July last year with the U.S. Department of Defence for a heavy rare earth separation facility
- This provides Lynas with the opportunity to be the only commercial producer of separated rare earths products outside of China
- Once operational, the plant is expected to produce around 5000 tonnes per annum of rare earths
- While funding details are still being finalised, the Department of Defence and Lynas will each contribute up to US$30 million (roughly A$38.6 million) each
- Company shares are up 7.57 per cent and are trading at $5.26
Through its subsidiary, Lynas USA, Lynas Rare Earths (LYC) has entered an agreement with the U.S. Government to build a light rare earths separation plant.
The agreement follows a contract signed in July 2020 with the U.S. Department of Defence for phase one work on a U.S.-based heavy rare earth separation facility in Texas.
This additional facility is also expected to be located in Texas and will serve both the Defence Industrial Base (DIB) and the electric vehicle (EV) and green technology market.
"As the only non-Chinese commercial producer of separated rare earths products to the global marketplace, Lynas is delighted by the opportunity to develop a light rare earth separation facility in the United States," CEO and Managing Director Amanda Lacaze said.
"Rare Earth materials are critical inputs to many industrial supply chains, including electric vehicles, electronics and several defence applications," she added.
Once operational, the plant is expected to produce around 5000 tonnes per annum of rare earths products, including roughly 1250 tonnes per annum of neodymium and praseodymium.
The facility will also be able to receive material directly from Lynas' cracking and leaching plant which is being developed in Kalgoorlie, Western Australia.
The project is part of Lynas' 2025 plan of being a reliable supplier of rare earth materials outside of China.
While funding details are still being finalised, the company expects the Department of Defence to cap its funding at around US$30 million (roughly A$38.6 million). Lynas is also expected to contribute the same amount under the agreement.
Ultimately, the secure supply will provide a foundation for the renewal of specialty metal making and permanent magnet production in North America.
Company shares are up 7.57 per cent and are trading at $5.26 at 10:26 am AEDT.