Lynas Rare Earths, the largest rare earth producer outside of China, announced an updated contract on Tuesday to build a heavy rare earth processing plant in Texas.
English source: Marion Rae
Industry contract compilation
Rare earth elements are crucial for defense technology and industrial magnets, prompting cooperation between the United States and Lynas, headquartered in Perth.
Deputy Assistant Secretary of Defense, Gary Locke, said that rare earth elements are increasingly important components in any economy and have applications in almost all industries, including defense and commercial markets.
She said, “This effort is the cornerstone of ensuring supply chain elasticity, enabling the United States and its allies to acquire organic capabilities for key minerals and materials, and to break free from dependence on foreign countries
Amanda Lakaz, CEO of Linus, stated that the factory is a “key pillar of the company’s growth strategy” and stated that priority should be given to developing a secure supply chain.
She said, “Our heavy rare earth separation plant will be the first of its kind outside of China and will help establish a rare earth supply chain with global influence, safety, and environmental responsibility
This 149 acre green space is located in the Seadrift Industrial Zone and can be used for two separation plants – heavy rare earth and light rare earth – as well as future downstream processing and recycling to create a circular ‘mine to magnet’ supply chain.
The updated expenditure based contract will repay construction costs with increased contributions from the US government.
The project allocated approximately $258 million, which is higher than the $120 million announced in June 2022, reflecting detailed design work and cost updates.
Once put into operation, the materials for this facility will come from the Lynas Mt Weld rare earth deposit and Kalgoorlie rare earth processing facility in Western Australia.
Linus stated that the factory will provide services to government and commercial customers with the goal of being operational in the 2026 fiscal year.
Post time: Aug-15-2023