Latest news with #LynasRareEarths
Yahoo
a day ago
- Business
- Yahoo
Lynas CEO says company is eyeing rare earths buys in Malaysia, Brazil
SYDNEY (Reuters) - Lynas Rare Earths is eyeing potential purchases of rare earths deposits in Malaysia and Brazil and plans to work with early-stage developers to help bring their mines online, its CEO Amanda Lacaze said on Wednesday. The world's largest rare earths producer outside of China is considering fresh growth options given macroeconomic uncertainties, she said at the Macquarie Australia Conference in Sydney. Malaysia, where Lynas has processing operations, has a lot of the same geology that is present through much of Southeast Asia, such as Myanmar, she said. Myanmar is a significant supplier to China's rare earths industry. "Yes there are deposits there, yes there are deposits in Brazil. Yes we are looking at them," Lacaze said. On Malaysian sites, Lacaze said that any development would have to come with high environmental and sustainability standards and that Lynas was open to working alongside the companies to "put our script to work". "Would we like to see them developed? Yes. Will we facilitate that development? Yes," she said. In Australia, where Lynas' Mt Weld deposit is located, an election at the weekend has returned to power the Labor government which had put out a policy to stockpile critical minerals such as rare earths. That is an "uneconomic" policy, Lacaze said. "You need to focus on developing a strong and successful business, and one which relies upon government funding to construct and then government funding to produce is probably by definition uneconomic," she added. U.S. President Donald Trump's administration has put a focus on developing rare earths deposits, having last week signed a deal with Ukraine for supply. Rare earths are used in industrial magnets and in some defence applications. But new supplies are difficult to develop and can take many years, Lacaze said. "I sometimes want to take an ad out in the Washington Post saying, 'Want Rare Earths? Call 1800 Lynas," she said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
2 days ago
- Business
- Malay Mail
Lynas, Kelantan join forces to tap local rare earths for Kuantan plant
KUANTAN, May 30 — Lynas Rare Earths Ltd and the Kelantan state government's investment arm, Menteri Besar Incorporated (MB Inc), have signed a memorandum of understanding (MoU) for the supply of mixed rare earths carbonate (MREC). In a statement today, Lynas said the MoU is non-binding and remains subject to the negotiation and finalisation of definitive agreements. It said the memorandum outlines a framework for both parties to strengthen, promote and develop cooperation to advance the Malaysian rare earths industry in Kelantan. 'It also provides a basis for MB Inc and Lynas to negotiate a definitive agreement for the supply of MREC feedstock to the Lynas Malaysia Advanced Materials Plant in Kuantan once the project commences production,' it added. Lynas Rare Earths chief executive officer and managing director Amanda Lacaze said Malaysia is already recognised as a rare earths centre of excellence through Lynas' operations, and the MoU marks a significant step towards developing locally sourced and separated rare earth products. 'Lynas is delighted to sign this MoU with the Kelantan state government's MB Inc. This is a significant step for Lynas and the Malaysian rare earths industry, bringing together Lynas Malaysia's over a decade of rare earths industry expertise and Kelantan state's rare earth resources,' she said. Lacaze noted that Malaysia's ionic clay deposits have strong potential as future feedstock for Lynas Malaysia, particularly due to the high concentration of heavy rare earths, which are in demand for advanced technologies such as electric vehicles and electronics. 'We look forward to working closely with MB Inc to ensure that the MREC produced meets the high environmental and technical standards required by Lynas and our customers across Malaysian and global manufacturing supply chains,' she added. — Bernama
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
Yahoo
3 days ago
- Business
- Yahoo
Lynas Rare Earths (ASX:LYC) Is Reinvesting At Lower Rates Of Return
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. However, after briefly looking over the numbers, we don't think Lynas Rare Earths (ASX:LYC) has the makings of a multi-bagger going forward, but let's have a look at why that may be. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Lynas Rare Earths, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.016 = AU$43m ÷ (AU$2.9b - AU$143m) (Based on the trailing twelve months to December 2024). So, Lynas Rare Earths has an ROCE of 1.6%. In absolute terms, that's a low return and it also under-performs the Metals and Mining industry average of 8.3%. See our latest analysis for Lynas Rare Earths Above you can see how the current ROCE for Lynas Rare Earths compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Lynas Rare Earths for free. On the surface, the trend of ROCE at Lynas Rare Earths doesn't inspire confidence. Over the last five years, returns on capital have decreased to 1.6% from 3.9% five years ago. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased. We're a bit apprehensive about Lynas Rare Earths because despite more capital being deployed in the business, returns on that capital and sales have both fallen. Since the stock has skyrocketed 288% over the last five years, it looks like investors have high expectations of the stock. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere. Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for Lynas Rare Earths (of which 1 doesn't sit too well with us!) that you should know about. While Lynas Rare Earths isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
eNCA
23-05-2025
- Business
- eNCA
Rare earth production outside China 'major milestone'
BEIJING - An Australian firm's production of a heavy rare earth, a first outside of China, is a "major milestone" in diversifying a critical supply chain dominated by Beijing, experts say. But the announcement by Lynas Rare Earths also illustrates how much more needs to be done to broaden the supply of elements critical for electric vehicles and renewable technology. What are rare earths? Rare earth elements (REE) are 17 metals that are used in a wide variety of everyday and high-tech products, from light bulbs to guided missiles. Among the most sought-after are neodymium and dysprosium, used to make super-strong magnets that power electric car batteries and ocean wind turbines. Despite their name, rare earths are relatively abundant in the Earth's crust. Their moniker is a nod to how unusual it is to find them in a pure form. Heavy rare earths, a subset of overall REE, have higher atomic weights, are generally less abundant and often more valuable. China dominates all elements of the rare earths supply chain, accounting for more than 60 percent of mining production and 92 percent of global refined output, according to the International Energy Agency. What did Lynas achieve? Lynas said it produced dysprosium oxide at its Malaysia facility, making it the only commercial producer of separated heavy rare earths outside of China. It hopes to refine a second heavy rare earth -- terbium -- at the same facility next month. It too can be used in permanent magnets, as well as some light bulbs. It "is a major milestone," said Neha Mukherjee, senior analyst on raw materials at Benchmark Mineral Intelligence. The announcement comes with China's REE supply caught up in its trade war with Washington. It is unclear whether a 90-day truce means Chinese export controls on some rare earths will be lifted, and experts say a backlog in permit approvals will snarl trade regardless. "Given this context, the Lynas development marks a real and timely shift, though it doesn't eliminate the need for broader, global diversification efforts," said Mukherjee. How significant is it? Lynas did not say how much dysprosium it refined, and rare earths expert Jon Hykawy warned the firm faces constraints. "The ore mined by Lynas contains relatively little of the heavy rare earths, so their produced tonnages can't be that large," said Hykawy, president of Stormcrow Capital. "Lynas can make terbium and dysprosium, but not enough, and more is needed." The mines most suited for extracting dysprosium are in south China, but deposits are known in Africa, South America and elsewhere. "Even with Lynas' production, China will still be in a position of dominance," added Gavin Wendt, founding director and senior resource analyst at MineLife. "However, it is a start, and it is crucial that other possible projects in the USA, Canada, Brazil, Europe and Asia, also prove technically viable and can be approved, so that the supply balance can really begin to shift." What are the challenges to diversifying? China's domination of the sector is partly the result of long-standing industrial policy. Just a handful of facilities refining light rare earths operate elsewhere, including in Estonia. It also reflects a tolerance for "in-situ mining", an extraction technique that is cheap but polluting, and difficult to replicate in countries with higher environmental standards. For them, "production is more expensive, so they need prices to increase to make any seriously interesting profits," said Hykawy. That is a major obstacle for now. "Prices have not supported new project development for over a year," said Mukherjee. "Most non-Chinese projects would struggle to break even at current price levels." There are also technical challenges, as processing rare earths requires highly specialised and efficient techniques, and can produce difficult-to-manage waste. What more capacity is near? Lynas has commissioned more processing capacity at its Malaysia plant, designed to produce up to 1,500 tonnes of heavy rare earths. If that focused on dysprosium and terbium, it could capture a third of global production, said Mukherjee. The firm is building a processing facility in Texas, though cost increases have cast doubt on the project, and Lynas wants the US government to pitch in more funds. US firm MP Materials has also completed pilot testing for heavy rare earth separation and plans to boost production this year. Canada's Aclara Resources is also developing a rare earths separation plant in the United States. And Chinese export uncertainty could mean prices start to rise, boosting balance sheets and the capacity of small players to expand. "The Lynas announcement shows progress is possible," said Mukherjee. "It sends a strong signal that with the right mix of technical readiness, strategic demand, and geopolitical urgency, breakthroughs can happen." by Sara Hussein
