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Lynas, JARE Strike 12-Year Rare Earths Deal With $110/kg Floor and 5,000 Tonnes a Year of NdPr

The state-linked arrangement is meant to guarantee reliable magnet inputs for Japan.

Overview

  • Lynas secured a firm annual commitment to supply 5,000 tonnes of neodymium‑praseodymium to Japan under a revamped pact with Japan Australia Rare Earths.
  • Pricing includes a $110 per kilogram floor for the committed volume, with JARE receiving 30% of any price gains above $150/kg capped at $10 million per year.
  • Lynas will allocate 75% of its heavy rare earth oxide output to Japanese industry, and JARE committed to purchase half of the company’s total heavy rare earth production.
  • Total supply capacity is preserved at up to 7,200 tonnes per year through 2038, providing a multi‑year commercial horizon.
  • JARE, co‑owned by Japan’s state metals and energy security body and Sojitz, previously provided A$200 million in 2023, as Japan and allies work to diversify supplies from China’s magnet sector dominance.