Sydney, August 26th (Argus) - Due to the increase in the price of rare earths, Australian rare earth mining company and refiner Lynas has increased the total production and sales of rare earth oxides (REO) operated in Australia and Malaysia for the fiscal year ending June 30, 2026.
Lynas stated on August 26th that due to the increase in the average selling price of total REO from $55 per kilogram in the fiscal year 2024-25 to $80.70 per kilogram in the fiscal year 2025-26, Lynas' total REO sales increased by 11% to 12,122 tons.
The reason for the increase in REO prices is the rise in praseodymium and neodymium prices outside China, which account for the largest share of Lynas' sales (calculated by weight), as well as the significant increase in the prices of heavy rare earths such as terbium and dysprosium, with the share of dysprosium and terbium in Lynas' sales increasing. Lynas began producing oxide terbium at the Kuantan refining plant in Malaysia in June 2025.
The European landed price of oxide neodymium assessed by Argus rose by 73% from $70 per kilogram on June 26, 2025, to $121 per kilogram on June 25, 2026, thanks to the strong demand for rare earth permanent magnets in the electric vehicle and wind energy industries.
Meanwhile, the European landed price of oxide terbium rose by 58% from $2,850 per kilogram on June 26, 2025, to $4,500 per kilogram on June 25, 2026. The price of oxide terbium has further increased to $5,100 per kilogram on August 20.
Lynas also benefited from its premium over the market index for its products, due to the geopolitical tensions between China and the United States.
This led to its after-tax net profit soaring from $8 million a year ago to $222.4 million. However, Lynas stated that due to the commissioning of new facilities and the increase in production, as well as the purchase of more expensive equipment outside China, the company is facing an increase in sales costs.
These new facilities include the water recycling plant at Lynas' Mount Weld mine in Western Australia, and the heavy rare earth expansion the company is undertaking in Malaysia. The company has raised its expected cost for the expansion in Malaysia from 180 million Australian dollars (equivalent to 129 million US dollars) to 294 million Australian dollars, due to higher purity requirements from customers and higher costs of inputs purchased outside China.
In March this year, Lynas produced oxide samarium for the first time at the Kuantan plant and expects to complete the first sales in the July-to-September quarter.
