Lynas Rare Earths says it is "match fit" to meet rising demand despite a fall in annual profit and costly onshore expansion.
The largest producer of rare earths outside China on Tuesday reported a 43 per cent fall in profit to $310.7 million.
Record production in the second half of the financial year to June 30 failed to make up for lower prices for the elements used in industrial magnets, electric cars and defence technology.
Lynas also disclosed a cost blowout at a processing plant soon to open in Kalgoorlie, Western Australia, has pushed the facility's forecast budget to $730 million from $575 million.
But the company said it has a cash balance of $1 billion to fund further expansion and cover the rising cost of the outback plant that is on track for an end-September start.
Along with sticker shock, the Kalgoorlie cracking and leaching plant will get a 30 per cent increase in capacity to produce 9000 tonnes per annum of finished product.
"We are now facing into a transition year," CEO Amanda Lacaze told a teleconference.
"This is all about ensuring we are match fit for the future, because we have absolutely no concerns at all about the fact that this market is going to continue to grow in value and in demand."
As advanced economies seek an alternative source to China for defence and industrial materials, Australian credentials are helping Lynas to build allies in the rare earths market.
Concentrate from the company's Mt Weld mine will go to the Kalgoorlie cracking and leaching plant before being sent for further processing at a plant in Gebeng, Malaysia, or a proposed separation facility in the United States.
A partnership to build the plant in Texas was struck in August, with the Department of Defence to get first call on output at commercial rates, Ms Lacaze said.
The site was selected to develop a sovereign "mine to magnet" industrial capability in the US and end China's dominance.
Group revenue of $739.3 million remained strong in FY23 but was lower than a year earlier when market prices were at record highs.
An expansion at Mt Weld remains on track with earthworks nearing completion, concrete works well progressed and fabricated steel modules being delivered to site.
Quizzed by analysts about a cost review of the $500 million Mt Weld expansion, the CEO said it was due "soon".
Shares in Lynas were steady at $6.95 in afternoon trade.
