Highlights
- Lynas achieved record 2,080 tonnes of NdPr production.
- First commercial Heavy Rare Earth separation outside China.
- Quarterly sales revenue surged 38% to A$170.2 million.
- Strategic partnerships advancing vertical integration.
- Company positioned as a key player in rebuilding non-China critical mineral supply chains.
- Focus on renewable energy initiatives.
In its June quarter (Q4 FY25), Lynas Rare Earths Ltd (ASX: LYC) posted a landmark performance, delivering both financial and operational breakthroughs that mark a defining moment in its evolution—and, arguably, for the non-China rare earth supply chain as a whole. At 10.65 as of July 24, 2025 before opening of U.S. markets, the Australian company’s stock is up 5.03%.
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Rare Earth Exchanges_ (REEx) shares movement based on John Parkinson (opens in a new tab), Chief Business Officer and co-founder and his REEx Forum entry (opens in a new tab).
Key Operational Firsts
Lynas achieved a record NdPr production of 2,080 tonnes, breaching the 2,000-tonne mark for the first time in company history. Even more significantly, it completed the first commercial production of separated Dysprosium and Terbium oxides—critical Heavy Rare Earths (HREEs)—at its Malaysia facility. This is the first commercial-scale HREE separation outside China in decades and positions Lynas as a vital player in global magnet supply chain resilience. REEx congratulates Lynas for this important milestone.
This HREE milestone arrives as geopolitical trade tensions and global tariffs drive an urgent push for China-independent critical mineral supply chains.
Financials: Revenue Jumps, ASP Breaks Out
Quarterly sales revenue surged 38% quarter-on-quarter to A$170.2 million, with cash receipts at A$152.7 million. The average selling price (ASP) rose to A$60.2/kg, the highest since Q3 2022, even as market-indexed prices remained soft. Notably, this signals a shift away from China-based pricing indexes, a trend confirmed by Lynas and echoed in REEx commentary by analyst John Parkinson.
Parkinson’s REEx Forum post emphasized that ex-China pricing is starting to decouple from China’s domestic market, citing a string of 20 quarterly data points that show Lynas’ ASP pivoting to premium, customer-based contract pricing—a dynamic also seen in the recent MP Materials–DoD floor-price arrangement.
REEx has noted that in this pivotal phase of history, pricing alone will no longer drive the rebuilding of supply chains—security is emerging as an equally critical factor.
Strategic Partnerships
Two new MoUs could reshape Lynas’ long-term positioning:
- With Kelantan Menteri Besar Inc (opens in a new tab). for future supply of upstream feedstock (Mixed Rare Earth Carbonate, MREC).
- With Korea’s JS Link (opens in a new tab) to co-develop a 3,000t NdFeB permanent magnet facility adjacent to Lynas Malaysia’s plant. The agreement includes supply of both Light and Heavy REEs from Lynas to support magnet production.
These vertical integration steps are crucial as magnet maker demand accelerates outside China, and buyers seek a secure, transparent supply.
ESG & Infrastructure Momentum
At Mt Weld, installation of the first wind turbine and completion of a solar farm caps the company’s renewable energy transition for upstream operations. Meanwhile, the Mt Weld expansion plant is now in commissioning, with ore and water testing expected to begin in Q1 FY26.
Lynas also confirmed progress on its U.S. Seadrift project, though additional CAPEX is required to resolve wastewater issues. Discussions with the U.S. government remain active.
Cash Burn and Balance Sheet Watch
Despite stellar sales, cash fell from A$269M to A$166M—driven by A$88.1M in CAPEX and project commissioning costs. Although within the plan, the figure is a reminder of the capital-intensive nature of Lynas’ strategic expansion and the importance of supportive industrial policy.
Analyst Takeaway (John Parkinson, REEx)
REEx’s Parkinson sees the quarter as a strategic inflection point. “Lynas has moved decisively away from China-indexed pricing,” he writes. “This is no longer a miner simply shipping REO—it’s now a key node in a nascent global magnet supply chain.”
He also notes Lynas is likely to benefit indirectly from the MP Materials–DoD floor-price regime in the next 6–12 months, assuming its own long-term offtake contracts have clauses for pricing revision or market disruptions.
REEx Synthesis
Lynas’ Q4 FY25 wasn’t just a rebound—it was a redefinition. With heavy rare earth production online, magnet-grade integration advancing, and China-indexed pricing breaking down, Lynas is rapidly becoming not just Australia’s rare earth champion but the global bellwether for a post-China critical mineral era.
Visit the REEx Forum (opens in a new tab) to interact with other investors.
Source: Lynas Quarterly Report Q4 FY25 (opens in a new tab) (24 July 2025); REEx Forum Analysis by John Parkinson (24 July 2025).
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