Lynas founder backs mooted rare earths mega-merger with MP...

Lynas founder backs mooted rare earths mega-merger with MP Materials

Brad ThompsonReporter

Feb 4, 2024 – 4.00pm

The founder of Lynas Rare Earths, Nick Curtis, has backed a mega-merger between the company and its New York-listed rival aimed at challenging China’s dominance in the strategically important sector.

Mr Curtis said a merger with MP Materials, or the acquisition of the Las Vegas-headquartered group by Lynas, made sense from an industrial and strategic point of view. The Australian Financial Review revealed on Friday that Lynas and MP Materials had been working on a deal to bring together the world’s two biggest non-China producers of rare earths.

Lynas-owned Mt Weld is Australia’s flagship rare earths mine. Trevor Collens

Lynas confirmed at the weekend that the company had been in talks with MP Materials, but said they were not ongoing. It is understood Lynas instigated the talks and considered a cash-and-scrip offer for MP Materials.

The biggest corporate play involving Lynas since it staved off a takeover bid from Wesfarmers in 2019 comes as the US considers tax breaks for downstream investment in the rare earths industry on top of already hefty Pentagon backing for Lynas and MP Materials.

In a statement, Amanda Lacaze-led Lynas did not rule out a deal in the future as the company looked to build scale in the supply of rare earths materials essential in defence and other industries.

The chatter is becoming quite noisy!