Ann: Investor Presentation May 2020, page-25

The point is USG needs to address Chinese State subsidy of NdFeB exports before there is any chance to create a viable domestic magnet supply chain, simply no one will invest the capital otherwise, Cruz's tax deductions are a nonsense.

Without that pull thru there will never be the domestic demand of a scale to support US production and the Chinese game plan will play out from magnets > motors > components > finished product.

Lynas will build out HRE separation either LAMP or Texas but volumes will be scaled to anticipated Japanese demand, sole ROW mkt of consequence ATM, as without USG policy intervention there will be no further mkt, and no further development of US supply chain.

Contrary to common US belief NOTHING is made from HRE, it is simply a small/tiny input to a functional product, albeit a critical one.

Neither Lynas, or Lynas/Japan, can do all the heavy lifting here in the face of China's mkt aggression, no escaping the reality US leadership is required to create a level playing field.