Lynas expands global footprint, eyes new rare earths supply deals
MELBOURNE: Australia's Lynas Rare Earths said it planned to grow its global supply chain on Wednesday, with discussions to secure new mine supply from project developers around the world and set up a magnet processing facility in the United States.
Australia's Lynas Rare Earths aims to expand its global supply chain by discussing new mine supply deals with developers worldwide and planning a magnet processing facility in the United States, according to interim CEO Pol Le Roux. The company reported a significant rise in annual profit, reaching A$222.4 million (US$159.37 million), driven by high selling prices and strong demand, but fell short of market expectations.
Le Roux stated that Lynas is in early talks with parties for a magnet-making facility in the US, emphasizing progress on this development. The US, Europe, and allied nations are actively building alternative supply chains to lessen dependence on China, which controls approximately 90% of global rare earth production, including crucial magnets used in aerospace, automotive, and defense sectors.
A China export control suspension for specific rare earth products ends in November. Despite soaring profits, Lynas faced operational challenges due to ore quality at its Mt Weld mine, exacerbated by rising costs, but has since resolved those issues at its Kalgoorlie plant. The earnings growth was fueled by firm prices and agreements with Japanese and US customers, resulting in a 59% increase in average selling price to A$80.7 per kilogram. Lynas is also searching for a new CEO following the retirement of Amanda Lacaze.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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