Rare earth production outside China ‘major milestone’

An Australian agency’s manufacturing of a heavy uncommon earth, a primary outdoors of China, is a “major milestone” in diversifying a important provide chain dominated by Beijing, consultants say.

However the announcement by Lynas Uncommon Earths additionally illustrates how way more must be achieved to broaden the provision of components important for electrical automobiles and renewable know-how.

What are uncommon earths?

Uncommon earth components (REE) are 17 metals which might be utilized in all kinds of on a regular basis and high-tech merchandise, from mild bulbs to guided missiles.

Among the many most sought-after are neodymium and dysprosium, used to make super-strong magnets that energy electrical automobile batteries and ocean wind generators.

Regardless of their title, uncommon earths are comparatively considerable in Earth’s crust. Their moniker is a nod to how uncommon it’s to search out them in a pure kind.

Heavy uncommon earths, a subset of total REE, have increased atomic weights, are usually much less considerable and sometimes extra useful.

China dominates all components of the uncommon earths provide chain, accounting for greater than 60% of mining manufacturing and 92% of worldwide refined output, in response to the Worldwide Power Company.

What did Lynas obtain?

Lynas stated it produced dysprosium oxide at its Malaysia facility, making it the one business producer of separated heavy uncommon earths outdoors of China.

It hopes to refine a second heavy uncommon earth—terbium—on the identical facility subsequent month. It too can be utilized in everlasting magnets, in addition to some mild bulbs.

It “is a major milestone,” stated Neha Mukherjee, senior analyst on uncooked supplies at Benchmark Mineral Intelligence.

The announcement comes with China’s REE provide caught up in its commerce struggle with Washington.

It’s unclear whether or not a 90-day truce means Chinese language export controls on some uncommon earths can be lifted, and consultants say a backlog in allow approvals will snarl commerce 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,” stated Mukherjee.

How vital is it?

Lynas didn’t say how a lot dysprosium it refined, and uncommon earths knowledgeable Jon Hykawy warned the agency faces constraints.

“The ore mined by Lynas contains relatively little of the heavy rare earths, so their produced tonnages can’t be that large,” stated Hykawy, president of Stormcrow Capital.

“Lynas can make terbium and dysprosium, but not enough, and more is needed.”

The mines most fitted to extracting dysprosium are in south China, however deposits are recognized 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 useful resource analyst at MineLife.

“However, it is a start, and it is crucial that other possible projects in the U.S., 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 results of long-standing industrial coverage. Only a handful of services refining mild uncommon earths function elsewhere, together with in Estonia.

It additionally displays a tolerance for “in-situ mining,” an extraction method that’s low-cost however polluting, and troublesome to duplicate in international locations with increased environmental requirements.

For them, “production is more expensive, so they need prices to increase to make any seriously interesting profits,” stated Hykawy.

That may be a main impediment for now.

“Prices have not supported new project development for over a year,” stated Mukherjee.

“Most non-Chinese projects would struggle to break even at current price levels.”

There are additionally technical challengesas processing uncommon earths requires extremely specialised and environment friendly methods, and may produce difficult-to-manage waste.

What extra capability is close to?

Lynas has commissioned extra processing capability at its Malaysia plant, designed to supply as much as 1,500 tonnes of heavy uncommon earths.

If that targeted on dysprosium and terbium, it might seize a 3rd of worldwide manufacturing, stated Mukherjee.

The agency is constructing a processing facility in Texas, although price will increase have solid doubt on the challenge, and Lynas desires the US authorities to pitch in additional funds.

US agency MP Supplies has additionally accomplished pilot testing for heavy uncommon earth separation and plans to spice up manufacturing this 12 months.

Canada’s Aclara Sources can be growing a rare earths separation plant in the US.

And Chinese language export uncertainty might imply costs begin to rise, boosting stability sheets and the capability of small gamers to broaden.

“The Lynas announcement shows progress is possible,” stated Mukherjee.

“It sends a strong signal that with the right mix of technical readiness, strategic demand, and geopolitical urgency, breakthroughs can happen.”

© 2025 AFP