ASX-listed Lynas has announced updated plans for expanding operations at its flagship Mt. Weld mine and concentrate plant in Western Australia.

As it stands Mt. Weld has a production capacity of about 7,000tpy of REEs (NdPr equivalent). However, the new US$345.5M investment will see production climb to 12,000tpy, surpassing the initial May 2019 five-year expansion plans of 10,500tpy. Subject to regulatory and stakeholder approvals, construction is expected to begin in early 2023, building up to full capacity by 2024. In addition to improvements, Lynas aims to enhance sustainability by transitioning from diesel-fuelled power generation to a combination of gas and renewable energy. Further expansion plans beyond 2025, including the advancements to existing upstream and downstream operations, such as Lynas’ separation facility in Malaysia, are also being developed.

While Lynas is positioned as a leading global REE supplier outside of China, the move to expand production is not surprising considering prevailing situation in the REE industry. Demand for light rare earth products, such as the NdPr produced by Lynas, has soared in recent years, in line with the growth of REE permanent magnets used in new-energy applications like electric vehicles and offshore wind turbines. Within this framework, Project Blue’s latest forecasts see the demand for REE-based magnets accounting for almost half of the total REE demand by 2050.

Besides ongoing rising demand, the complex geopolitical nature and fragile supply chain of REEs are also influencing many governments to prioritize stable sources of REEs. Outside of China, the main supply sources have been limited. However, Australia has been working hard to reinforce partnerships with other nations, including the other members of the Quadrilateral Security Dialogue (QUAD), which have already been investing in REE and critical minerals. Most recently, the USA and Australia, through Lynas, have announced a collaboration to build a heavy rare earth refinery in Texas. Overall, these positive collaborations and expansions appear to be a potential, yet still small, challenge to China’s REE dominance, though there is a long way to go before a steady, integrated supply chain is established.