London, October 30th (Argus) - Australian producer Lynas Rare Earths has seen a quarterly increase in production and for the first time shipped heavy rare earths from July to September.
According to the company's latest results, the total production of rare earth oxides in July to September increased by 32% year-on-year and by 24% quarter-on-quarter, reaching 3,993 tons. The total production of praseodymium and neodymium was 2,003 tons, slightly down from 2,080 tons in the previous quarter, but up by 16% year-on-year.
Lynas continues to increase the production of dysprosium and terbium. In May this year, the company produced dysprosium for the first time, becoming the first heavy rare earth producer outside China. From July to September this year, Lynas produced 9 tons of heavy rare earths and signed contracts with the first batch of customers, and the products were also delivered to the customers.
Lynas will start producing samarium in the first half of 2026. The company announced on October 29th that the expansion of the heavy rare earth separation plant in Malaysia will begin in December.
The company's sales revenue in July to September increased by 66% year-on-year and by 18% quarter-on-quarter, reaching 200.2 million Australian dollars (131.2 million US dollars). The average selling price decreased by 10% to 54.3 Australian dollars per kilogram, but the price still increased by 27% year-on-year.
Lynas stated that after China announced on October 9th to strengthen rare earth export control, the demand from end customers and new metal and magnet manufacturers has increased significantly.
Lynas stated that if the new regulations are fully implemented, the supply from China may be restricted, but it has found all the alternative supplies.
However, after the Sino-US trade negotiations, China postponed some export restrictions for one year.
Lynas stated that after the change in China's export policy, it will "prudently manage" its production and sales operations.
Lynas emphasized the significant geopolitical progress in the rare earth sector, including a key mineral agreement between Australia and the United States, and a key mineral agreement between Malaysia and the United States.
But the company emphasized that it should prioritize supporting the supply chain outside China that currently relies on Lynas. The company is communicating with multiple governments on the "supply and fair pricing framework" to maintain the existing rare earth supply chain.
After the US government signed a rare earth purchase and price agreement with US producer MP Materials, rare earth producers outside China are pushing to sign purchase agreements and price floors to avoid risks to their production activities.
Lynas signed a cost-based contract with the US Department of Defense (DoW) to develop a heavy rare earth processing plant in Texas, but the company stated that there is "great uncertainty" regarding whether the plant will continue to be built.
