USG tender

Got hold of a copy of the currently open tender today, for both LRE & HRE as let by AFRL, distinct from the Army tender for HRE recently closed.

Don't ask me exactly how they overlap but the total funding available basically matches the earlier RFI's, up to $20M each, but with the additional detail proposed $35M for a producer +5ktpa, and $5M for producer +500tpa. Potentially that could be split LRE/HRE but that's an incredibly inefficient way to spend taxpayer dollars. Even with the required matching funds it's a spit in a bucket to what's required but project massively significant strategically.

Tender closes 2nd March, quite an auspicious day building for Lynas, with result indicated 165 days, mid August.

Blueline JV looks purpose built to satisfy domestic criteria:

"project aims to establish one or more secure domestic sources of Rare Earth Element
(REE) separation and processing. Solicitations are restricted to domestic
sources, as defined in the Defense Production Act of 1950: “A business
concern that performs in the United States or Canada substantially all of
the research and development, engineering, manufacturing, and
production activities required of such business concern under a contract
with the United States relating to a critical component or a critical
technology item"

These read like they were written by Lynas' DC lobbyist:

The evaluation criteria are comprised of five factors ranked in
descending order of importance:

(1)Manufacturing Capability and Experience
(2)Quality of Technical Approach
(3)Business Viability
(4)Merchant Supplier Orientation
(5)Cost/Price

(1) Manufacturing Capability and Experience – Proposals will be evaluated on the recipient’s degree of demonstrated capability and experience in REE separation and processing. Evidence may include, but is not limited to, intellectual property, documented manufacturing capability and experience, technical specifications, and dossiers of key personnel.

Balance similar, no brainer.

None of this of course remotely factored into current SP.