Australian rare earths producer Lynas Rare Earths (ASX : LYC) has added heavy rare earth separation to its credentials after producing high-value dysprosium oxide at its Malaysian refinery.
It makes Lynas the sole existing business outside China that can produce separated heavy rare earths (HREE) - materials in high demand for the tech, defense, automotive and aviation industries.
That's because China produces about 80-90% of the world's HREE and over 99% of the refined oxides - and with the U.S.-China trade war affecting global supplies of REEs, the successful separation of dysprosium is a significant milestone for both the Lynas and the West.
The four heavy, magnetic rare earths of neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb) are essential elements crucial to creating strong permanent magnets - especially those used in motors and generators.
Find out more: Mission Critical: The gravity of China's rare earth bans
Lynas Rare Earths managing director Amanda Lacaze confirmed that first Dy production on the separation circuit at its Malaysian plant is a new supply chain option for businesses.
“The production of this on-spec Dy is a significant step in supply chain resilience and provides customers with the option of sourcing product from an outside China supplier,” Lacaze said.
“Lynas is now the world’s only commercial producer of separated HREE products outside China.
‘’[We are] uniquely positioned to contribute to and benefit from efforts to diversify and rebuild supply chains, including opportunities for a sustained market restructure… [and] are engaged with customers in Japan, the United States and Europe regarding HREE supply.
‘’The development of our new HREE separation circuit reflects the unique skills and expertise of our people. I am proud of the team’s achievement in delivering this initial Dy production,” Ms Lacaze said.
Another heavy rare earth, terbium, is expected to be separated for sale into supply chains in June.
