Australia’s Lynas Rare Earths Ltd., the largest magnet metal producer outside of China, has stated that the various measures taken by the United States to weaken Beijing’s dominant position in the rare earth sector have bolstered market interest and demand for the company’s products.
According to a report by Bloomberg on July 24th, in the first three months leading up to June, sales of rare earths by the Australian mining company increased by 25% compared to the same period last year. The production of neodymium and praseodymium oxide during this period increased by 43%.
Lynas is expanding its processing plant in Kalgoorlie, Australia, and has begun producing a new range of “high grade” rare earth products at its refining plant in Malaysia, making the company the only rare earth supplier outside of China.
In May of this year, Lynas announced the production of dysprosium oxide in Malaysia, marking the first commercial separation and production of heavy rare earths outside of China, breaking the long-standing dominance held by China. In June, Lynas produced another rare earth element – terbium.
With the United States intensifying efforts to establish domestic production as an alternative to Chinese manufacturing, the company is considering building a new plant in Texas. Beijing has indeed weaponized rare earths in the China-US trade negotiations, prohibiting the export of processing technologies that could benefit competitors, and has been accused of using national quotas to control supply, raising concerns among Western countries.
The company stated, “Lynas welcomes the recent reshaping of the rare earth industry by the US government. Despite the uncertainty in the global trade environment, demand from end-users and new magnet manufacturers for Lynas products is significantly increasing, although market fluctuations are expected to continue after September 2025.”
Supported by Australia’s richest person, Gina Rinehart, Lynas also announced a preliminary agreement with South Korean magnet manufacturer JS Link Inc. to jointly establish a new factory near the Lynas refining plant in Malaysia.
Lynas reported that the average selling price of its products hit a three-year high, leading to a 4.2% increase in share price in Sydney, reaching the highest level since April 2022.
In order to weaken China’s dominant position, the US government signed a $258 million contract with Lynas to build a new refining plant in Texas.