Latest news with #dysprosium
News.com.au
23-05-2025
- Business
- News.com.au
‘Major milestone': Aussie company makes big breakthrough in China-dominated market
An Australian company has made a global breakthrough in producing heavy rare earth elements outside China, a move analysts say is a key step in diversifying a supply chain long dominated by Beijing. Lynas Rare Earths announced it has successfully produced dysprosium oxide at its Malaysian facility. It marks the first time the element has been commercially separated outside China. The company also plans to refine terbium, another heavy rare earth, at the same site in the coming weeks. Experts have described the development as significant but warn it highlights the broader challenges in building an alternative supply chain for materials critical to electric vehicles and renewable energy technologies. Rare earth elements (REEs) include 17 metals used in a range of applications, from smartphones and LED lights to electric vehicle motors and guided missiles. Neodymium and dysprosium are vital to the production of powerful permanent magnets used in wind turbines and EV batteries. Despite their name, rare earths are relatively common in the Earth's crust, but are rarely found in concentrations that are economical to extract. Heavy rare earths like dysprosium and terbium are less abundant and typically more valuable than light rare earths. China currently dominates the rare earths sector, accounting for over 60 per cent of mining output and 92 per cent of refined supply globally, according to the International Energy Agency. By producing dysprosium oxide in Malaysia, Lynas has become the only commercial producer of separated heavy rare earths outside China. The company did not disclose how much dysprosium was refined. 'This is a major milestone,' said Neha Mukherjee, senior analyst at Benchmark Mineral Intelligence. 'The Lynas development marks a real and timely shift, though it doesn't eliminate the need for broader, global diversification efforts.' The announcement comes amid trade tensions between China and the United States, with export controls and permit delays creating uncertainty in global rare earth markets. President of Stormcrow Capital Jon Hykawy warned that the achievement should be kept in perspective. 'The ore mined by Lynas contains relatively little of the heavy rare earths, so their produced tonnages can't be that large,' he said. 'Lynas can make terbium and dysprosium, but not enough, and more is needed.' China's dominance of rare earths is largely due to long-standing industrial policy, which generally involves low-cost, environmentally damaging extraction methods. China's practices are harder to replicate in countries with stricter environmental regulations. 'Production is more expensive, so they need prices to increase to make any seriously interesting profits,' Hykawy said. Mukherjee added that price pressure remains a significant barrier. 'Prices have not supported new project development for over a year,' she said. 'Most non-Chinese projects would struggle to break even at current price levels.' Lynas has commissioned additional capacity at its Malaysian facility, which is designed to produce up to 1,500 tonnes of heavy rare earths annually. If focused on dysprosium and terbium, that could represent roughly a third of global production.
Malay Mail
23-05-2025
- Business
- Malay Mail
Lynas achieves rare earth milestone in Malaysia with first commercial dysprosium production, challenging China's dominance
BANGKOK, May 23 — 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 per cent of mining production and 92 per cent 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.' — AFP
Japan Times
23-05-2025
- Business
- Japan Times
Rare earth production outside China 'major milestone'
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. 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% of mining production and 92% of global refined output, according to the International Energy Agency. 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." 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 specialized and efficient techniques, and can produce difficult-to-manage waste. Lynas has commissioned more processing capacity at its Malaysia plant, designed to produce up to 1,500 tons 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 U.S. government to pitch in more funds. U.S. 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."
Japan Times
18-05-2025
- Business
- Japan Times
Australian firm produces heavy rare earth, first outside China
Australian firm Lynas Rare Earths says it has become the first commercial producer outside China of heavy rare earths, used in an array of renewable energy technologies. Lynas produced dysprosium oxide at its new facility in Malaysia, offering customers a non-Chinese source for the first time, it said in a statement Friday. "Lynas is now the world's only commercial producer of separated heavy rare earth products outside China," said chief executive Amanda Lacaze. It is a "significant step for supply chain resilience and provides customers with the option of sourcing product from an outside China supplier," she said. Lynas expects to produce another rare earth, terbium, in June. The firm said it expected pricing to reflect high demand for rare earths sourced from outside China. Beijing has banned the export of processing technology that could help rival nations, and has been accused of using state-imposed quotas to control supply. In an effort to loosen China's stranglehold, the U.S. government has agreed a $258 million contract for Lynas to build a new refinery in Texas. Lynas operates the Mt. Weld rare earths mine in Western Australia as well as the processing facility in Malaysia. China on Wednesday suspended curbs on exports of rare earths and other goods and technologies for military use targeting 28 U.S. entities as part of the trade detente struck between the world's two largest economies. The move followed an agreement by China and the U.S. to temporarily lower tariffs levied against each other's products — the first major de-escalation in the trade row that was touted by U.S. President Donald Trump as a "total reset' of bilateral ties. The suspension of export controls took effect on Wednesday and will last for 90 days, the China's Ministry of Commerce said in a statement. China initially blocked exports of seven types of rare earths for 16 U.S. entities on April 4, then added 12 additional entities on April 9. Exporters of rare earth and other goods that can be used for military uses are allowed to apply for export licenses to the Ministry of Commerce now in 90 days, according to the statement.
News.com.au
18-05-2025
- Business
- News.com.au
Little-known Aussie company takes on China
The brutal trade war between China and the United States has hit a number of industries, but 31 critical minerals, including rare earth elements, were exempted from the tariffs. Yet China has another headache on its hands with one Aussie company muscling into the lucrative industry. Lynas Rare Earths is an Australian rare-earths mining company with two major operations – a mining and concentration plant at Mount Weld in Western Australia and the Lynas Advanced Materials Plant in Kuantan, Malaysia. The company has now become the first producer of heavy rare earths outside of China following the successful production of dysprosium at its Malaysia plant as demand for the mineral soars. Dysprosium produces high-performance magnets for electric vehicles, wind turbines, and hard drives, and also plays a role in nuclear reactors and certain medical applications. Export restrictions in China have tightly controlled the rare material, but the strategy is about to be blown up. Lynas Rare Earths CEO and managing director Amanda Lacaze said the production of the rare mineral is 'a significant step for supply chain resilience and provides customers with the option of sourcing product from an outside China supplier'. 'Lynas is now the world's only commercial producer of separated heavy rare earth products outside China,' she said. 'Lynas is uniquely positioned to contribute to and benefit from efforts to diversify and rebuild supply chains, including opportunities for a sustained market restructure. We are engaged with customers in Japan, the United States and Europe regarding heavy rare earths supply.' Pricing for the new heavy rare earths products is expected to be at a 'premium' compared with prices in China due to high Western demand, according to the company, while the company is currently valued at $7.2 billion. Lynas has been operating since 2012 and previously supplied materials for the likes of smartphones and defence related machinery. Associate Professor of technology and innovation at the University of Technology, Sydney Marina Yue Zhang said the United States has a deep dependence on China for materials essential to its technological competitiveness, clean energy transition and national defence. The United States knew it could not win the war on the critical minerals, particularly as China ramped up expanded export controls and a shift in pricing principles as it came under attack. 'The move reflects China's longstanding effort to shift rare earth pricing from market supply and demand to pricing based on their strategic value,' Associate Professor Zhang wrote in The Conversation. 'The impact was immediate. Rare earth exports from China effectively ground to a halt, as exporters awaited approvals under a new, opaque licensing regime.' China has near-total global control of rare earth refining at around 90 per cent and its monopoly on heavy rare earth processing is 98 per cent, she noted. But now there is a new competitor in town as alarms have been sounded on the vulnerability Western nations faced when it came to these rare minerals. 'China is also working to redefine how rare earths are priced. One proposal would tie the value of key elements like dysprosium to the price of gold, elevating them from industrial inputs to geopolitical assets,' wrote Associate Professor Zhang. 'Another would settle rare earth transactions in yuan rather than US dollars, advancing Beijing's broader ambition to internationalise its currency. For China, this strategy goes beyond economics. It is a deliberate national resource policy comparable to OPEC's management of oil, designed to link pricing to the strategic significance of critical minerals.' However, Australia could be best placed to disrupt China's dominance, and the government is investing. Associate Professor Zhang explained that key processing technologies are not yet established, while potentially high environmental compliance costs are big barriers too. 'Under its Future Made in Australia initiative, the federal government is considering measures such as strategic stockpiling, production tax credits and expanded support for domestic processing,' she said. 'Iluka Resources has secured $A1.65 billion to build a rare earth refinery, due to be operational by 2026. Emerging projects like Browns Range and Lynas's Malaysian refinery already serve as alternative nodes in the global rare earth supply chain network.' However, she notes that Australia is also facing walking a 'diplomatic tightrope'. 'Australia's dual role – as a major upstream supplier to China and a strategic ally of the US – places it on a diplomatic tightrope,' she said. 'Aligning too closely with the US could invite Chinese retaliation. Appearing overly aligned with China may provoke scrutiny from Washington.'
