Australian rare earths producer Lynas Rare Earths is well-positioned to meet the growing demand from a maturing “rest of world” market, with projects advancing in key regions outside China and new customers seeking reliable supply chains, general manager of development Alex Logan said on Tuesday.

Speaking at the Diggers and Dealers conference in Kalgoorlie, Logan said the rare earths sector was entering a “very, very exciting phase” as magnet manufacturing capability outside the incumbent markets of China and Japan was finally taking shape, particularly in Korea, Vietnam, Europe, Canada and the US.

“A vibrant outside-China rare earths industry is emerging, and it is perhaps a little later than expected, but it is actually happening today,” said Logan.

Recent policy initiatives by the US government to establish a local supply chain industry turbocharging the already strong momentum in developing the rest of the world industry.  

“Initiatives by the US Department of Defense are the most significant action from governments since the Japanese invested in Lynas in 2010. It highlights that governments and OEMs [original equipment manufacturers] are finally taking tangible action to reduce exposure to single-source supply chains and monopoly markets.”

Lynas is working with new magnet participants across key jurisdictions to help establish these new supply chains, and has recently signed an memorandum of understanding with Korean firm JS Link to develop a magnet facility in Malaysia.

Logan noted that the company was seeing increased demand from existing customers, OEMs and new magnet makers. “To have a vibrant rest-of-world rare earths market, the participants need to be successful, sustainable businesses and able to compete in a global market.”

As a proven producer of separated rare earth materials, Lynas is offering bundled supply agreements and providing customers with security from mine through to magnet and motor. “This provides the OEMs the confidence to invest into magnet makers and magnet makers the confidence to invest in, and grow their businesses.”

Logan also highlighted a milestone achievement at Lynas’ Malaysian facility, where the company has become the only commercial-scale producer of separated heavy rare earths outside China. “With the successful on-spec production of separated dysprosium and terbium oxides, we have broken the Chinese monopoly of heavy rare earth separation,” he said.

This strategic capability allows Lynas to participate in markets that are less price sensitive, including the electronics and defence sectors, and to tailor its products to suit specific magnet formulations through bundling.

Underpinning the company's growth is the Mount Weld mine in Western Australia, which Logan described as a world-class deposit with a high grade, long life and significant heavy rare earth content.

Mount Weld supports a mineral reserve of 32-million tonnes at 6.4% total rare earth oxides (TREO), providing more than 20 years of mine life at expanded production rates. The broader mineral resource sits at over 100-million tonnes at 4% TREO.

“We have set up Mount Weld for the next 20 years,” said Logan. “We have increased capacity, enhanced efficiency and improved sustainability.”

The recently completed expansion at Mount Weld delivers a fourfold increase in throughput capacity to 1.3-million tonnes a year and the ability to support 12 000 t/y of neodymium-praseodymium finished product. 

Logan said sustainability was central to the modernised Mount Weld operation, with Lynas investing significantly in energy and water initiatives. A hybrid gas-renewable power station is replacing diesel generation, with the completed installation expected to deliver 70% renewable penetration. The project is being developed with power partner Zenith and includes gas, solar and wind generation.

“Water is very precious at Mount Weld — sometimes we say it’s rarer than rare earths,” Logan said. The company has commissioned a high-recovery borewater reverse osmosis plant and a tailings water recycle facility delivering more than 90% recovery.

Also forming part of Lynas’ “mine to magnet” strategy is the Kalgoorlie rare earths facility, which has now been commissioned and integrated into operations.

He reiterated the importance of investment in common-user infrastructure to support the development of critical minerals hubs, saying most companies in the sector don’t have the scale to fund standalone infrastructure.