"Given the growing uncertainty driven by the ongoing tariff war and China’s export controls onDysprosium and Terbium, the strategic importance of ionic clay-hosted rare earths projects likeKoppamurra to Australia’s national interests has become increasingly evident. We remaincommitted to advancing the project as customers seek to secure diversified and reliable supplyof rare earths." Travis Beinke, MD
This is great news for Western supply chains.
Recognising that Western manufacturers need to strengthen their supply chains' resilience through the manufacturing of Dy and Tb, Lynas Rare Earths started to produce them as a separate operating stream and recently confirmed that it is producing both terbium and dysprosium oxide for the first time. The urgency of this action means that, Lynas can provide customers with the two heavy rare earth elements needed for rare earth permanents (otherwise they are useless), but at what price and what volume is yet to be disclosed!
In my opinion, this was forced onto Lynas rather than it being an economic plausibility. Great if they can make it work but I suspect that the margins for Lynas may indicate that they are not making a lot of money, and therefore it is not sustainable. However, AR3 ionic clay leaching process receives all four noticeable oxides simultaneously through a simple procedure as noted in the Announcement. So, obviously it’s going to be a far greater cost-effective alternative without the associated radioactive waste streams of hard rock projects.
The ex-china market needs Lynas to succeed but it also needs material support to take on the might of heavily subsidised China material.
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