Australian mineral producer Lynas Rare Earths recorded strong production results and its first heavy rare earth shipments in July-September.
Total rare earth oxide production increased 32pc on the year and 24pc on the quarter to 3,993t, according to the company's latest results. Production of neodymium-praseodymium totalled 2,003t, a slight decrease from 2,080t in the previous quarter but up 16pc on the year.
Lynas continued to ramp up dysprosium and terbium production. It produced dysprosium for the first time in May, becoming the first heavy rare earths producer outside of China. In July-September, Lynas produced 9t of the crucial heavy rare earths, with the first customer contracts signed and products shipped to customers.
Lynas will start production of samarium in the first half of 2026. Work on the company's expanded heavy rare earth separation circuit in Malaysia, announced on 29 October, will start in the December quarter.
The producer's sales revenue increased by 66pc on the year and 18pc on the quarter to A$200.2mn($131.2mn). The average sales price fell 10pc on the quarter to A$54.3/kg, but prices were still up 27pc year-on-year.
Demand from direct end customers and new metal and magnet maker projects increased significantly after China announced increased rare earth export controls on 9 October, Lynas said.
If the new regulations are implemented in full, Lynas said that some inputs sourced from Chinese suppliers may be restricted. It has located alternative supply for all the critical inputs.
But today, China postponed some restrictions for one year after trade talks between China and the US.
Production and sales will be "carefully managed" until the Chinese regulations are understood and major governmental agreements have been finalised, Lynas said.
Lynas highlighted significant geopolitical developments in the rare earths space, including a critical minerals deal between Australia and the US and a critical minerals agreement between Malaysia and the US.
But the company emphasised support for the current ex-China supply chain, which is dependent on Lynas, should be the priority. The company is interfacing with multiple governments on "supply and fair pricing frameworks" to maintain existing rare earth supply chains, Lynas said.
Rare earth producers outside of China are pushing for offtake agreements and price floors to derisk their activities after the US government signed an offtake and price agreement with US producer MP Materials.
Lynas has an expenditure-based contract with the US Department of War (DoW) to develop a heavy rare earths processing facility in Texas, but said there is "significant uncertainty" about whether the processing plant will proceed.
