Australia’s Lynas to design Texas rare earths factory as US seeks to reduce reliance on China

Lynas, the largest producer outside China, won funding from the US Department of Defence to design a rare earths processing plant in Texas

China supplies about 80 per cent of America’s rare earths imports, according to the US Geological Survey

2-MIN READ2-MIN

Lynas is the biggest producer of rare earths outside China. Photo: Reuters

Published: 12:30pm, 27 Jul 2020Updated: 12:30pm, 27 Jul 2020

Australian miner Lynas Corp, the key source of rare earths outside China, will aim to complete planning work on a rare earths processing plant in Texas by mid-2021 after it won funding from the US Department of Defence.

The contract will allow Lynas and Texas partner Blue Line Corp to carry out studies and finalise designs for a planned heavy rare earths separation facility, the firm said on Monday in a statement.

The “Phase 1” funding forms part of a concerted effort by Washington to reduce the United States’ reliance on China as the world’s largest producer of the strategic minerals used to make missiles, mobile phones to a ranger of other hi-tech equipment.

Lynas shares advanced as much as 12 per cent in Sydney trading.

“Lynas has the feedstock, intellectual property and track record to deliver a heavy rare earths facility in a timely and low risk manner,” Chief Executive Officer Amanda Lacaze said in the statement.

The Australian company produces about 13 per cent of the global supply of rare earth elements, which are used in high-strength permanent magnets vital to electric vehicle motors, wind power generators, consumer electronics and military defence systems, while China controls 80 per cent of the world’s production.

A Lynas worker walks past sacks of rare earth concentrate at Mount Weld, Perth. File photo: Reuters