Latest news with #Lynas'
Asia Times
3 days ago
- Business
- Asia Times
How SE Asia can break China's rare earth monopoly
Last week, Australia's Lynas Rare Earths produced heavy rare earth elements (HREEs) at a commercial scale in Malaysia, marking the first time this has ever happened outside of China. This breakthrough, which includes elements like dysprosium and terbium, is no small feat in a market dominated by China, which is responsible for around 60% of global rare earth production and virtually 100% of the world's HREE supply. Rare earth elements (REEs) are critical for the US and other advanced economies: they power technologies from electric vehicles to defense systems. The US Department of Defense, for instance, has identified HREEs as vital for missile systems, radar and advanced communications. Yet, the US itself produces only about 12% of global REEs—and almost none of the heavy types. Without secure access to these materials, Western industries risk supply chain disruptions that could slow the clean energy transition and compromise national security. It is for these reasons that the US recently signed an agreement with Ukraine to secure preferential access to its mineral resources—including, notably, REEs—in exchange for establishing a Ukraine reconstruction fund, as well as certain payback for the estimated US$150 billion the US has provided Ukraine since the war started. However, a significant portion of Ukraine's known REE reserves lies in the Donetsk region, which remains under Russian control, highlighting the fragility of relying on politically contested sources. In this context, Lynas' progress is not just a technical achievement but a geopolitical shift. It positions not only Malaysia, but also Southeast Asia, as a key hotspot for the future of sourcing REEs. Until recently, there were few incentives to produce REEs in the region. But market shifts, the strategic push for supply chain diversification and the growing capacity of Southeast Asian countries to process REEs domestically promise to unlock vast potential. Vietnam, in particular, holds some of the world's largest REE reserves—estimated at around 3.5 million tonnes (with some sources suggesting as much as 20 million tonnes), nearly twice the size of US reserves. Yet its production today is negligible, representing less than 1% of global output. Major deposits in the country's northwest, such as Dong Pao and Nam Xe, remain largely untapped, while significant areas across the country are still unexplored. Still, Southeast Asia's potential REE suppliers face substantial challenges: (1) environmental concerns, notably the management of radioactive byproducts like thorium; (2) a lack of technical expertise and processing infrastructure, with China still controlling key separation technologies; and (3) market and geopolitical pressures, as these countries navigate a landscape dominated by Chinese pricing power, potential retaliation and complex export dynamics. If Southeast Asia—especially Vietnam and Malaysia—can overcome these challenges, the region could emerge as a critical node in global REE supply chains, offering the US, Europe, Japan and others an alternative to China's near-monopoly. However, this will require more than favorable geology; it demands investment in refining capacity, strict environmental standards, and strategic partnerships that ensure technology transfer and long-term market access. For the West, the stakes are clear: support Southeast Asia's rare earth ambitions—or remain perilously dependent on a single Chinese supplier. Patricio Faúndez is country manager at GEM Mining Consulting
The Age
4 days ago
- Business
- The Age
Critica kicks off bulk test work at giant WA rare earths play
Critica reckons there is every chance its metallurgists will crack the last piece of the code to deliver a low-cost processing solution. Adding to its rare earths inventory, the company is also now looking at a potential second income stream from Jupiter. Initial beneficiation work using wet low-intensity magnetic separation recovered 64 per cent iron concentrate, hinting at a valuable by-product opportunity that could improve the project's economics. Jupiter's lease is well placed, just 50km southwest of Mt Magnet and 300km from the Port of Geraldton. The grounds are crisscrossed by a main highway linking the two hubs and run alongside the Mid West gas pipeline, which all gives the project a logistical leg-up. Adding to the appeal, Critica's ground sits within striking distance of Lynas' Mt Weld processing plant and Iluka's upcoming Eneabba refinery - two rare earth powerhouses that could offer a highly attractive toll treatment solution down the line. Meanwhile, the hunt for rare earths is far from over. Jupiter is just one piece of the puzzle within Critica's broader Brothers REE project - a province-scale play with multiple satellite targets already returning promising early results. Earlier this month, Critica fired up the rigs on a string of juicy satellite targets stretching across more than 8km, including the Juno and Aurora prospects, which are both a stone's throw from the main Jupiter deposit. Previous drilling at Juno already dished up a tasty teaser, with standout hits such as 8 metres going 4256ppm TREO and an impressive 34 per cent magnet rare earths. With a globally significant deposit, surging demand for non-Chinese supply chains and metallurgical testing in full swing, the market will no doubt be watching closely as test work ramps up and Critica moves to unlock the full potential of one of Australia's most significant critical minerals finds. Is your ASX-listed company doing something interesting? Contact: mattbirney@
BusinessToday
28-04-2025
- Business
- BusinessToday
Lynas Warns US Tariffs Could Threaten Texas Rare Earths Project
Lynas Rare Earths Ltd, the world's largest producer outside China, is negotiating with the Trump administration over rising costs for its planned Texas refinery, while cautioning that the US president's tariff policies could jeopardise the project. The Perth-based company — supported by Australia's richest person Gina Rinehart — said on Monday that while pre-construction activities have commenced, additional expenses are required to address wastewater challenges. It is currently in discussions with the US government over the matter. 'We are also reviewing the potential cost implications for the US project as a consequence of recent announcements on global tariffs,' Lynas said. Lynas produces 'light' rare earths, vital components for magnets used in electric vehicle motors, wind turbines and munitions. It is poised to expand into the 'heavy' rare earths sector with new refining capacity both in the US and in Malaysia, where an existing plant will begin processing many of the metals now restricted by Chinese export controls later this year. China's dominance of the rare earths industry — supplying 69% of global mined production according to the US Geological Survey — has stirred unease in Washington, which is actively seeking to diversify its supply chains. In retaliation to US tariffs, Beijing has added seven rare earths to its export control list. Ore for the Texas plant will be sourced from Lynas' Mt Weld mine near Kalgoorlie in Western Australia, the company said on its website. Bloomberg Related
