Lynas Rare Earths has signed a binding letter of intent with the US Department of War (DoW) to finalise a rare earth oxide supply agreement.
The DoW will allocate approximately US$96 million to purchase light and heavy rare earth oxide products from Lynas, with the floor price of supply for NdPr oxide set at US$110 per kilogram.
The letter of intent establishes a framework to finalise an agreement for the supply of rare earth oxides to support US national security supply chain resilience objectives.
Lynas will supply the products over a four-year period.
Amanda Lacaze, CEO of Lynas Rare Earths said: “Through this agreement, the US Defense Industrial Base will continue to have access to light and heavy rare earth oxides that are essential for modern manufacturing.
“We thank the US government for working with Lynas to reach this mutually beneficial arrangement and look forward to finalising the definitive agreement in due course and continuing our productive engagement with the US government.”
Lynas and DoW are still discussing supply arrangements for further supply arrangements including for heavy rare earth oxides.
This offtake agreement follows the mutual decision to modify the original agreement between Lynas and the DoW based on significant uncertainty as to whether the construction of the heavy rare earth processing facility at Seadrift, Texas would proceed.
The agreement with the US DoW follows another with Japan Australia Rare Earths for neodymium-praseodymium, highlighting Lynas’ growing importance in the global supply of rare earths.
