A new downstream processing industry is born

When Lynas Rare Earths announced its 2025 growth plan in May 2019, it looked to build out Australia’s rare earths industry beyond dig and ship.

The company saw opportunities in downstream processing and sought to construct a rare earths processing facility in Kalgoorlie near its Mt Weld mining operation.

Now, less than two-and-a-half years from receiving full construction approvals, Lynas has officially opened its $800 million facility, further solidifying itself as the only significant producer of separated rare earths outside of China.

“This was an ambitious project which established downstream rare earths processing in Australia for the first time,” Lynas chief executive officer Amanda Lacaze said.

“It was a foundational project for our Lynas 2025 growth strategy and a significant financial investment for Lynas and our shareholders.”

Fully constructed, commissioned and producing, the facility achieved first feed on in December 2023, and Lynas has been progressively introducing refined mixed rare earth carbonate (MREC) from Kalgoorlie into its Malaysia plant.

The company hopes to also eventually feed MREC into a planned rare earths processing facility in Seadrift, Texas, as it looks to establish domestic rare earths supply for US commercial and defense manufacturers.

The US facility is expected to become operational in the 2025–26 financial year.

Lynas reached its highest share price in 18 months on Friday ($8.09 per share), having traded below $8 and even $7 for much of 2024 amid softened rare earths prices.

Benchmark Mineral Intelligence recently reported that most rare earths mines were “struggling to break even” because of lower prices.

“Benchmark’s cost model suggests that current price levels are not only hurting producers outside of China, but Chinese producers as well,” Benchmark senior rare earth analyst Neha Mukherjee said.

Despite market reticence, Lynas continues to deliver on its growth objectives, with an expansion of the company’s flagship Mt Weld mining operation also being carried out.

Lynas recently completed Stage 1 construction of its Mt Weld expansion, with a goal of producing 12,000 tonnes per annum of neodymium-praseodymium oxide in the future.