Lynas Posts A$556M Revenue, Raises A$750M to Fuel Rare Earths Expansion
Lynas Rare Earths reported FY25 results featuring record NdPr output and the first commercial heavy rare earths production outside China, alongside a $750 million equity raise to fund its ambitious Towards 2030 growth strategy.
- Record NdPr production and first separated heavy rare earth oxides produced
- Ramp-up of Kalgoorlie and Mt Weld facilities expanding processing capacity
- A$750 million fully underwritten equity raise to accelerate growth initiatives
- Towards 2030 strategy focuses on resource expansion, downstream capacity, and metal/magnet supply chain
- Strong government partnerships and sustainability investments underpin future growth
FY25 Operational Highlights
Lynas Rare Earths Limited delivered a mixed FY25 performance marked by significant operational milestones and strategic progress. The company achieved record production of neodymium-praseodymium (NdPr) at 6,558 tonnes, up from 5,655 tonnes the previous year, and successfully produced separated heavy rare earth oxides (dysprosium and terbium) outside China for the first time. This positions Lynas uniquely in the global rare earths market as the only commercial producer of these critical materials beyond China’s borders.
The ramp-up of the Kalgoorlie Rare Earths Processing Facility, with a nameplate capacity supporting approximately 9,000 tonnes per annum of NdPr finished product, and the near-completion of the Mt Weld expansion, which targets 12,000 tonnes per annum NdPr capacity, underpin this growth. Lynas Malaysia also expanded its solvent extraction and product finishing capacity to 10.5kt per annum, further enhancing downstream capabilities.
Financial Performance and Capital Raising
Despite a 20% increase in sales revenue to A$556.5 million, net profit after tax fell sharply to A$8 million from A$84.5 million in FY24, reflecting higher operating costs and investment in growth initiatives. EBITDA declined to A$101.2 million from A$132.1 million, signaling margin pressures amid the expansion phase.
To fund its ambitious Towards 2030 strategy, Lynas launched a fully underwritten A$750 million institutional placement, accompanied by a Share Purchase Plan aiming to raise up to A$75 million from eligible shareholders. The equity raise, priced at a 10% discount to the last closing price, will provide pro forma liquidity of approximately A$902 million, giving Lynas the financial flexibility to accelerate resource development, expand downstream processing, and enter the rare earth metal and magnet manufacturing supply chain.
Towards 2030, Strategic Growth Pillars
Lynas’ Towards 2030 strategy is built on two core pillars, Harvest and Grow. The Harvest phase focuses on optimising returns from the Lynas 2025 capital investments by ramping up existing assets in line with customer demand and market growth. The Grow phase aims to add resource scale, increase downstream capacity, and expand into the metal and magnet supply chain outside China.
Key initiatives include developing the Mt Weld Carbonatite to produce higher-grade NdPr concentrate, adding new feedstock sources such as Malaysian ionic clay, broadening heavy rare earth separation capacity in Malaysia, and progressing a 3,000-tonne capacity NdFeB permanent magnet manufacturing facility in Kuantan through a partnership with Korea’s JS Link. These moves reflect Lynas’ intent to capture more value along the rare earths supply chain amid increasing government interventions worldwide to secure supply chains.
Market Dynamics and Government Engagement
The rare earths market is experiencing robust demand growth, driven by the expanding use of permanent magnets in green technologies and electronics. Forecasts indicate NdPr demand will grow at around 6% compound annual growth rate through 2035. Governments in Australia, the US, and other jurisdictions recognize Lynas as a critical player in securing non-China rare earth supply chains, engaging actively with the company on policy and strategic initiatives.
Lynas is also navigating uncertainties around its US Seadrift Heavy Rare Earths Processing Facility, where additional capital expenditure is required and offtake agreements with the US Department of Defense remain under negotiation. Meanwhile, sustainability remains a priority, with investments in renewable energy infrastructure at Mt Weld and water recycling projects supporting Lynas’ environmental commitments.
Outlook
With a strengthened balance sheet and a clear strategic roadmap, Lynas is well-positioned to capitalise on the evolving rare earths market. The company’s unique position as a leading non-China producer of both light and heavy rare earths, combined with its expanding downstream capabilities and government partnerships, sets the stage for sustained growth and value creation through to 2030.
Bottom Line?
Lynas’ FY25 results and $750 million raise set the stage for a pivotal decade in rare earths supply beyond China.
Questions in the middle?
- Will Lynas secure commercial offtake agreements to advance the US Seadrift facility?
- How quickly can Lynas ramp up new downstream magnet manufacturing capacity in Malaysia?
- What impact will global government policies have on Lynas’ pricing power and market share?
