Highlights
- Lynas claims the 'rest-of-world' rare earths market is emerging, with growing downstream magnet capacity in multiple countries.
- The company remains the only commercial-scale producer of separated heavy rare earths outside China, with significant operational expansions.
- Despite progress, the global rare earth supply diversity is still limited and not yet self-sustaining.
In a bullish address at the Diggers & Dealers conference, Lynas Rare Earths executive Alex Logan (opens in a new tab) made a confident pitch: the elusive “rest-of-world” rare earths market—long talked about, rarely realized—is finally materializing. Logan pointed to growing downstream magnet capacity in Korea, Vietnam, Europe, Canada, and the U.S., noting Lynas’ own role as a proven mine-to-separation supplier ready to anchor this emerging global ecosystem.
At first glance, the claim is credible. Lynas remains the only commercial-scale producer of separated heavy rare earths outside China, now producing dysprosium and terbium oxides at its Malaysian plant. The company’s Mount Weld mine also continues to deliver globally significant grades (6.4% TREO over 32 million tonnes of reserves).
The Good, the Real, and the Strategic
So what’s solid in all of this?
- MountWeld’s expansion (1.3 Mt/y throughput, up to 12,000 t/y NdPr capacity) is a major operational step forward.
- The company’s sustainability upgrades—a 70% renewables hybrid power station and >90% water recovery—are real ESG wins.
- Lynas’ ability to offer bundled supply contracts (mine-to-magnet) gives OEMs and magnet makers confidence in project bankability—critical in a market long plagued by uncertainty.
What’s Overstated:
- “Breaking China’s monopoly” on heavy rare earths is a stretch. While technically true for small-scale separated output, China still controls >98% of global supply and refining capacity of the heavies
- The JS Link partnership in Malaysia is promising, but early-stage; so far, no timeline or investment figures have been disclosed.
What’s Missing:
- The article omits any price discussion—critical in today’s low-margin REE market. Can Lynas remain profitable if NdPr prices stay depressed?
- No mention of U.S. regulatory headwinds Lynas faces at its Texas plant, or rising competition from MP Materials and Arafura in securing offtake partners.
Conclusion: The Rest of the World May Be Arriving, But the Road Is Narrow
Lynas is still the most credible non-China rare earth supplier, but the “rest-of-world” market is not yet self-sustaining. Supply diversity is advancing—but not fast or deep enough to declare victory. Retail investors should view this as early innings with a defensible first-mover, not the end of the story.
August 6, 2025 | Source: Creamer Media (opens in a new tab) / Mariaan Webb reporting from Diggers & Dealers, Kalgoorlie
Agreed, we are nowhere near an end story in the ROW RE sector. However, e.g., IOHO, South Korea might want to take a close look at a strategic move on both AUS Arafura and ASM (as the US did with MP re., the major strategic and private backing recently).
Such a S. Korean move would garner L/HRE feedstock, processing to oxides and then metal/alloy making linked to an already building Korean within borders magnet making capacity, i.e., the full value chain with eager endline manufacturing waiting.
Countries are claiming strategic backing, tax incentives, bottom-line pricing, etc. Japan is doing likewise with its moves into France with Caremag for processing and recycling having already got Lynas Malaysia and Namibia CM.
Yes, a long way to go but comparing the RE sector picture last decade to this, it is already night and day.
GLTA – REI
(Transparency – we hold Lynas, Arafura, ASM and Namibia CM)