Home / Business and Economy / US Gov Backs Rare Earth Supply Deal
US Gov Backs Rare Earth Supply Deal
16 Mar
Summary
- US Pentagon to allocate $96 million for rare earth oxide products.
- Deal ensures continued access to essential light and heavy rare earth oxides.
- Agreement strengthens US supply chain resilience against foreign reliance.
Lynas USA LLC has entered into a binding letter of intent with the U.S. government for a rare earth oxide supply agreement. This pact involves a Pentagon allocation of approximately $96 million for the purchase of light and heavy rare earth oxide products.
The agreement establishes a floor price of $110 per kg for NdPr oxide, creating a framework for a four-year supply. This initiative is designed to support U.S. national security and enhance supply-chain resilience.
The new arrangement revises a prior agreement, addressing uncertainties regarding a planned heavy rare earth processing facility in Texas. Lynas CEO Amanda Lacaze highlighted that the deal ensures continued access to vital rare earth oxides for modern manufacturing.
This development aligns with the U.S. push to secure critical minerals and decrease dependence on China, which currently dominates global rare earth magnet production. Lynas is recognized as the largest rare earth producer outside of China.
