Lynas Rare Earths Ltd. will expand its processing capacity of so-called heavy rare earths at its Malaysian refinery to meet increasing demand for the metals key to robotics, advanced tech and military applications.
The company, which is the only producer able to supply both light and heavy rare earth products outside China, will build a new separation facility at its plant, it said in a statement Wednesday. The new plant will have the capacity to separate up to 5,000 tons of heavy rare earth feedstock from its Mount Weld mine in Australia as well as other sources from Malaysia.
“Market demand for heavy rare earths is high and Lynas can be selective in where, and at what price, we sell heavy rare earth oxides,” Chief Executive Officer Amanda Lacaze said in the statement.
Lynas Shares Have More Than Doubled This Year
Stock has fallen from record reached earlier this month on optimism for US-China deal.
It comes as the US and Europe work to lessen their dependence on sources of critical minerals from China, which dominates the sector. Japan, which invested in Lynas after Beijing briefly cut off its access to rare earths in 2010, struck a new agreement with the US on Tuesday to cooperate and stockpile the metals widely used from consumer products to military equipment.
Lynas already produces terbium and dysprosium, with samarium set to enter production from next April at its new facility, all among the seven heavy rare earth restricted by China in April this year.
Beijing outlined plans to expand the curbs this month, adding five more mid-to-heavy rare earths and requiring overseas shippers of items that contain even small amounts of certain rare earths to have an export license. The fate of those measures remains unclear after US Treasury Secretary Scott Bessent suggested China may defer implementation.
Lynas’ expansion aims to produce materials to counter these restrictions, including yttrium which is in the expanded list. The cost of project is approximately A$180 million ($119 million).
Source: www.bloomberg.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein