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Lynas Rare Earths CEO and Managing Director Amanda Lacaze said:

“The production of Dy and Tb at Lynas Malaysia provides manufacturers with an opportunity to increase the resilience of their supply chains and we are positively engaged with a range of customers regarding commercial supply arrangements,” Ms Lacaze added.

This is an exciting development for Lynas and our customers and sets Lynas apart as the only commercial producer of separated Heavy Rare Earth products outside China. In recognition of the importance of these products in supply chain resilience, Lynas has engaged with target customers. Our pricing offer reflects the high demand for these products outside China rather than the market index which is based on inside China transactions.

Recent global trade and policy changes have affected rare earths trade and markets. The 2-way flow of rare earth materials between the US and China has ceased as a result of the tariffs levied in each jurisdiction. Further, the Chinese government has introduced export restrictions on Heavy Rare Earths and associated products which has led to a pause on all exports of rare earth magnets containing HRE from China. Lynas’ unique role as the largest supplier of separated rare earths ex-China, and the imminent addition of Dy and Tb to our product range, means that we are ideally positioned to contribute to supply chain diversification and to benefit from favourable market conditions. We expect it will take some time for customers to reorganise supply chains and agreements, however, this presents an opportunity for a sustained market restructure. Lynas is engaging with direct and indirect customers to develop new sales agreements.

Logic is telling me that LYC will achieve higher sales prices for its RE's as customers will be prepared to pay a premium for reliable consistent supply, I am looking forward to receiving further updates during the quarterly report update at the end of July.