Lynas Posts A$170m Quarterly Sales with Record NdPr Output and Heavy Rare Earths Debut
Lynas Rare Earths has achieved record quarterly production of key rare earth elements and reported a strong 38% increase in sales revenue, while advancing its Mt Weld expansion and signing strategic MOUs in Malaysia.
- Record quarterly NdPr production exceeds 2,000 tonnes
- First commercial production of separated Heavy Rare Earths outside China
- Sales revenue rises 38% to A$170.2 million with improved average selling price
- Mt Weld Expansion project nears completion with commissioning underway
- Strategic MOUs signed for rare earth supply and magnet manufacturing in Malaysia
Record Production Milestones
Lynas Rare Earths Ltd has reported a landmark quarter ending 30 June 2025, with neodymium-praseodymium (NdPr) production surpassing 2,000 tonnes for the first time. This milestone underscores Lynas’s growing capacity to meet rising global demand for these critical rare earth elements, essential in the manufacture of magnets for electric vehicles and renewable energy technologies.
Adding to this achievement, Lynas announced the first commercial production of separated Heavy Rare Earths; specifically Dysprosium Oxide and Terbium Oxide; at its Malaysian facility. This is a significant development, marking the first such production outside China in decades and positioning Lynas as a key player in diversifying global supply chains.
Financial Performance and Market Positioning
The company’s quarterly sales revenue surged 38% to A$170.2 million, driven by an improved average selling price of A$60.2 per kilogram, the highest since mid-2022. This increase reflects Lynas’s strategic focus on cultivating direct customer relationships and implementing pricing agreements that are less dependent on volatile market indices.
Despite ongoing global trade uncertainties and tariff challenges, Lynas is managing production levels to align with market demand. The company reports a notable uptick in demand from end customers and new magnet manufacturing projects, signaling robust interest in its expanded product portfolio, especially the newly produced Heavy Rare Earths.
Advancing Expansion and Sustainability Initiatives
The Mt Weld Expansion project is progressing on schedule and within budget, with the process plant handed over to commissioning teams. Key infrastructure such as the crusher circuit has been successfully commissioned, and the grinding and flotation circuits energized, setting the stage for ramped-up production in the coming quarter.
In parallel, Lynas is advancing its sustainability agenda by integrating renewable energy sources at Mt Weld. The solar farm is complete, and the first of four wind turbines has been installed, reflecting the company’s commitment to reducing its carbon footprint while scaling operations.
Strategic Partnerships and Market Development
Lynas has signed two important Memorandums of Understanding (MOUs) in Malaysia. One is with Kelantan Menteri Besar (MB) Inc to collaborate on developing rare earth deposits and supplying mixed rare earth carbonate to Lynas’s Malaysian plant. The other is with Korean magnet manufacturer JS Link to develop a 3,000-tonne capacity permanent magnet manufacturing facility near Lynas’s advanced materials plant in Kuantan. These partnerships aim to strengthen Malaysia’s rare earth supply chain from upstream mining to downstream magnet production.
These initiatives align with broader geopolitical shifts, including supportive measures by the U.S. administration to foster a more diversified and resilient rare earths industry outside China. Lynas’s positioning as a reliable supplier and its expanding product range could prove pivotal as global supply chains evolve.
Safety and Financial Overview
On the safety front, Lynas reported mixed results with a reduction in total recordable injury frequency but an increase in lost time injuries, primarily due to slips and falls. The company is actively addressing these concerns through targeted awareness campaigns.
Financially, Lynas’s cash and short-term deposits declined to A$166.4 million, reflecting ongoing capital expenditures on growth projects and operational costs. The company remains focused on balancing investment in expansion with maintaining a strong financial position.
Bottom Line?
With production milestones achieved and strategic partnerships underway, Lynas is poised to deepen its influence in the global rare earths market amid evolving trade dynamics.
Questions in the middle?
- How will Lynas stabilize and scale Heavy Rare Earths production amid market volatility?
- What are the prospects and timelines for finalizing the MOUs into binding agreements?
- How might U.S. regulatory developments impact Lynas’s Seadrift project and overall expansion?