The United States Department of Defence is bankrolling a processing plant under a beefed-up contract with Australia's leading rare earths company.
Lynas Rare Earths, the largest rare earths producer outside of China, on Tuesday announced the updated contract for the construction of the heavy rare earths component of a processing facility in Texas.
Rare earths elements are vital for defence technology and industrial magnets, prompting US collaboration with Perth-headquartered Lynas.
Deputy Assistant Secretary of Defence Halimah Najieb-Locke said the elements are an increasingly important part of any economy, with applications in virtually every industry, including defence and commercial markets.
"This effort is a cornerstone event in securing resilient supply chains by enabling the United States and its allies to gain an organic capability for critical minerals and materials, and depart from foreign dependence," she said.
Lynas CEO Amanda Lacaze said the plant was a "key pillar of (the company’s growth strategy" and demonstrates the priority being given to developing secure supply chains.
"Our heavy rare earths separation plant will be the first of its kind outside China and will help to establish a globally significant, safe and environmentally responsible rare earths supply chain," she said.
The 149-acre greenfield site in the Seadrift industrial zone allows for two separation plants - for heavy and light rare earths - as well as future downstream processing and recycling to create a circular "mine to magnet" supply chain.
The updated expenditure-based contract will reimburse construction costs under an increased contribution by the US government.
Some $US258 million is allocated to the project, up from $US120m announced in June 2022, reflecting detailed design work and cost updates.
Once operational, material for the facility will be sourced from the Lynas Mt Weld rare earths deposit and the Kalgoorlie Rare Earths Processing Facility in Western Australia.
The plant will serve government and commercial customers and is targeted to be operational in the 2026 financial year, Lynas said.
