- Lynas Rare Earths (LYC) has won another round of funding from the US DoD for the construction of the HRE component of its REE processing facility in Texas
- The DoD is interested due to overhead Federal critical mineral supply chain security initiatives
- Once online, it will be the first at-scale heavy REE processing facility outside of China
- Ore will be supplied from Lynas’s Western Australian operations
- Lynas shares are up 5.79 per cent, trading at $7.12 at 10:38 am AEST
Lynas Rare Earths (LYC) has inked a follow-on contract with the US Department of Defense (DoD) for the construction of the heavy rare earths component of its REE processing facility in Texas, USA.
The company won US$120 million (A$178.6 million) from the DoD last year towards the construction of the facility, which the DoD is interested in because it will be a customer.
The partnership is aiming to create the first at-scale heavy REE processing infrastructure outside of China.
In short, the defence department will now be able to secure the minerals from within the US rather than third parties – harmonising with critical mineral supply chain security initiatives.
DoD funding comes from a US-led program that will see, under new contract terms, all of Lynas’s “properly allocable construction costs” reimbursed. To date, the US government has allocated $258 million to the project.
Lynas has also now selected a site for the facility, in Seadrift, Texas.
Once operational, the facility will handle REE ore from Lynas’s Western Australian operations, as well as another processing facility in Kalgoorlie. The Texas facility is set for operation in FY26.
“Our Heavy Rare Earths separation plant will be the first of its kind outside China and will help to establish a globally significant, safe and environmentally responsible rare earths supply chain,” Lynas CEO Amanda Lacaze said.
Lynas shares were up 5.79 per cent, trading at $7.12 at 10:38 am AEST.