Australia’s Lynas Rare Earths has signed a US$120 million follow-on contract with the U.S. Department of Defense to construct a business heavy rare earths separation facility in Texas, the agency mentioned on Tuesday.
Lynas is the world’s solely processor of rare earths outdoors China, and the contract with its U.S. subsidiary builds on ‘Phase 1’ funding for a facility introduced in July 2020.
The project, for which the Pentagon offered preliminary funding, is anticipated to be in-built an industrial space on the Texas Gulf Coast and be operational in monetary yr 2025, the corporate mentioned.
Lynas intends to mix the heavy rare earth separation plant with a light-weight rare earth separation facility, which is half-funded by the Defense Production Act workplace of the U.S. Department of Defense.
The plant could be the primary outdoors China that is ready to separate heavy rare earths, Chief Executive Amanda Lacaze informed Reuters in an interview.
The plant could be the primary outdoors China that is ready to separate heavy rare earths, Chief Executive Amanda Lacaze informed Reuters in an interview.
“And that is why that is such an necessary step,” she mentioned after Tuesday’s information.
Lynas mines rare earths in Western Australia and ships the fabric to Malaysia in southeast Asia, the place it produces rare earth oxides.
The firm’s aim to spice up output by 50% by 2025 wouldn’t be enough to satisfy rising demand, Lacaze mentioned, nevertheless.
“The speedy progress out there, significantly over the past 12 months, tells us that we have to speed up that plan,” she mentioned of the goal the corporate set itself in 2019.
After provides had been disrupted by the COVID-19 pandemic, curiosity from Western nations, Japan, the European Union and others has grown as they recognised the danger of counting on China as their sole supply of provides.
“The challenge right here is just not whether or not it is Chinese or non-Chinese… it is merely {that a} singular provide chain is problematic, significantly in an space the place you’ve got received speedy progress and you have got a fabric which is crucial for success,” Lacaze mentioned.
“We are definitely extremely engaged with governments who’re involved about provide chain safety, and we’ll proceed to take action.”- Reuters
