Lynas signs 96 million dollar US rare earth supply deal

LYNAS RARE EARTHS LTD has announced the signing of a binding letter of intent with the United States government to finalize a supply agreement for rare earth oxides. Under the proposed terms, the Pentagon will allocate approximately $96 million to procure light and heavy rare earth oxide products. The agreement includes a floor price of $110 per kilogram for neodymium-praseodymium (NdPr) oxide and establishes a framework for a four-year supply partnership aimed at enhancing national security and supply-chain resilience. This new structure follows a mutual decision to revise previous plans due to uncertainty regarding the development of a heavy rare earth processing facility in Seadrift, Texas. Rare earth elements are critical components in a wide range of modern technologies, from consumer electronics like smartphones and washing machines to advanced military hardware such as F-35 fighter jets and electric vehicle motors. > "Through this agreement, the U.S. Defense Industrial Base will continue to have access to Light and Heavy Rare Earth oxides that are essential for modern manufacturing," Lynas CEO Amanda Lacaze said. Headquartered in Australia, Lynas is currently the largest producer of rare earths outside of China. The deal comes as the American government continues its efforts to secure critical minerals and reduce its dependence on Chinese production, which currently accounts for roughly 90% of the global market for rare earth magnets.