Actually that report is inaccurate on one critical point; that Lynas 'cannot capture premium pricing' due to the Sojitz supply agreement 'at prevailing market prices'. That's a misunderstanding of the Sept 2022 update of the supply agreement. https://wcsecure.weblink.com.au/pdf/LYC/02564226.pdf Here's the key quote:
Lynas shall ensure that in the event of competing demands from the Japanese market and a non-Japanese market for the supply by the Borrower or Lynas Malaysia for NdPr produced from the LAMP, the Japanese market shall have priority of supply up to 7,200tonnes per year subject to the terms of the Availability Agreement and to the extent that Lynas will not have any opportunity loss.
So the agreement makes no reference to 'prevailing market prices' and only guarantees to give the Japanese priority supply so long a they are willing to match other potential customers. There are similar but weaker clauses covering potential outputs from Texas and NdPr production over 7.2kt.
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