LYNAS SIGNS CONTRACT TO BUILD U.S. LIGHT RARE EARTHS SEPARATION
FACILITY
Lynas Rare Earths Limited (ASX:LYC, OTC:LYSDY) (Lynas) has today entered into an
agreement with the United States Government to build a commercial Light Rare Earths
separation plant in the United States, through our wholly owned subsidiary, Lynas USA
LLC.
This collaboration with the Department of Defense is sponsored by the Title III, Defense
Production Act program, which sits within the Pentagons office of Industrial Policy, and
will ultimately be directed by the Office of the Undersecretary for Acquisition and
Sustainment.
This project is scheduled to be completed in accordance with the Department of Defense
timetable and as part of our Lynas 2025 plan. Detailed costings are still being finalized;
we expect Department of Defense funding to be capped at approximately US$30 million.
Lynas will also be expected to contribute approximately US$30 million under the
agreement.
The plant is expected to be located in Texas. Once operational, the plant is expected to
produce approximately 5,000 tonnes per annum of Rare Earths products, including
approximately 1,250 tonnes per annum of NdPr. The plant will be able to receive
material directly from the cracking & leaching plant that Lynas is developing in Kalgoorlie,
Western Australia.
The signing of this agreement follows the announcement on 27 July 2020, that Lynas
had signed a contract with the U.S. Department of Defense for Phase I work on a U.S.
based Heavy Rare Earth separation facility. Should that contract proceed to the next
phase, the Texas facility would house both Heavy Rare Earths and Light Rare Earths
processing facilities. The facilities will serve both the Defense Industrial Base (DIB) and
the growing commercial market, including electric vehicles and green technologies made
in the U.S. as well as in global markets.
Commenting on todays announcement, Amanda Lacaze, Lynas CEO and Managing
Director said:
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.
Rare Earth materials are critical inputs to many industrial supply chains, including
electric vehicles, electronics and several defence applications. While demand for Rare
Earth materials continues to grow, COVID-19 has exposed the risks within global supply
chains of the single sourcing of critical materials.
This agreement is consistent with the U.S. Governments commitment to rebuild the
domestic industrial base, while working effectively with partner nations. The Texas plant
will ensure the U.S. has a secure domestic source of high quality separated Rare Earth
Lynas Rare Earths Ltd
Level 1, 45 Royal Street, East Perth, Western Australia, 6004.
Tel: +61 8 6241 3800
Fax: +61 8 9225 6842
www.lynascorp.com
ACN 009 066 648
materials. This secure supply will provide the essential foundation for the renewal of
downstream specialty metal making and permanent magnet manufacturing in North
America, Ms. Lacaze said.
If you have any queries in relation to this announcement, please contact Jennifer
Parker or Lauren Stutchbury, our communications consultants at Cannings
Strategic Communications on +61 2 8284 9990. |
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