The US Department of Defense has signed a $120mn deal with Australia’s Lynas Rare Earths to build one of the first US domestic heavy rare earths separation facilities, part of Washington’s push to counter China’s dominance of critical mineral supply chains. Rare earth elements are vital to making magnets used in military equipment such as lasers and guidance systems, as well as components in electric vehicles, wind turbines, fibre optic cables and consumer electronics. China is responsible for almost 90 per cent of global refining of rare earths and more than 50 per cent of rare earths mining, according to the International Energy Agency.
Australia's Lynas Rare Earths has signed a $120 million follow-on contract with the U.S. Department of Defense to build a commercial heavy rare earths separation facility in Texas, the firm said on Tuesday. Lynas is the world's largest processor of rare earths outside China, and the contract with its U.S. subsidiary builds on 'Phase 1' funding for a facility announced in July 2020. Lynas intends to combine the heavy rare earth separation plant with a light rare earth separation facility, which is half-funded by the Defense Production Act office of the U.S. Department of Defense.
Lynas Corp. (LYSDY) appears to have found support after losing some value lately, as indicated by the formation of a hammer chart. In addition to this technical chart pattern, strong agreement among Wall Street analysts in revising earnings estimates higher enhances the stock's potential for a turnaround in the near term.