Lynas Rare Earths (ASX:LYC) has produced the first dysprosium oxide at its plant in Malaysia, making it the world’s only commercial producer of separated heavy rare earths products outside of China.
Dysprosium is one of the rare earths that China in April placed an export ban on in response to the high tariffs US President Donald Trump introduced on Chinese goods imported into the US.
China controls the market, with its refineries producing 99.9% of the world’s dysprosium, which is a key component of the permanent magnets needed for electric vehicle motors and wind turbines. Dysprosium is also used in the control rods for nuclear reactors.
The Asian powerhouse, which accounts for about 70% of the global rare earths market, previously placed export restrictions on seven categories of rare earths, with terbium and scandium also among them.
Western Australia-headquartered Lynas commissioned its new heavy rare earth separation circuit in the March quarter and in line with expectations produced the first dysprosium oxide this month.
This is slated to be followed by terbium production in June.
CEO Amanda Lacaze says the production of the on-specification dysprosium is a significant step for supply chain resilience and provides customers with the option of sourcing product from an outside China supplier.
“Lynas is uniquely positioned to contribute to and benefit from efforts to diversify and rebuild supply chains, including opportunities for a sustained market restructure,” Lacaze says.
“We are engaged with customers in Japan, the United States and Europe regarding heavy rare earths supply.”
Lynas notes that pricing for the new heavy rare earths products is expected to reflect the high demand for these products outside China.
The Malaysia plant has been operating since 2012 and supplies separated rare earth materials to customers in east Asia, the US and Europe.
The plant processes concentrate from Lynas’ Mt Weld rare earths deposit in Western Australia and mixed rare earth carbonate.
Write to Angela East at Mining.com.au
Images: Lynas Rare Earths
