Following Japan Long-Term Contract, Lynas (LYSDY.US) Secures Nearly $100 Million Rare Earth Order from Pentagon

Lynas Rare Earths Ltd. (LYSDY.US) has signed a binding letter of intent to supply rare earth oxides to the U.S. Pentagon over four years.

The company stated on Monday that the agreement is valued at $96 million and covers heavy and light rare earth products. The letter of intent “establishes a framework for finalizing the supply agreement.” These critical minerals are widely used in wind turbines, electric vehicle motors, and advanced military equipment, playing an important role in national security and supply chain resilience.

The statement also clarified that the minimum price for neodymium-praseodymium oxide in this cooperation is $110 per kilogram.

Amanda Lacaze, CEO of Lynas, said in the statement, “Through this agreement, the U.S. defense industrial base will continue to access essential light and heavy rare earth oxides for modern manufacturing.”

China nearly monopolizes the global rare earth supply chain, and Lynas is one of only two major rare earth miners outside China. Currently, the company operates a mine and processing plant in Western Australia and has a production facility in Malaysia.

Lynas mentioned in the statement that it plans to build a heavy rare earth processing plant in West Texas, but whether the project can proceed smoothly remains “a significant uncertainty.”

Notably, just one week before signing this agreement, Lynas also signed a purchase agreement with Japan Australia Rare Earths BV, which conducts business negotiations with Japanese companies. The agreement is valid until 2038 and commits to supplying at least 5,000 tons of neodymium-praseodymium oxide annually, with a minimum price of $110 per kilogram.