Ann: Quarterly Activities Report, page-3

CEO REVIEW
During the quarter, Lynas commenced commissioning of the new Heavy Rare Earth separation circuit. A
small quantity of Holmium concentrate has been produced by the circuit, and separation of Dysprosium
(Dy) has commenced. First production of Dy is expected in May, followed by Terbium (Tb) in June.
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 mark restructure. Lynas is engaging with direct and indirect customers to develop new sales agreements