SYDNEY, Australia – Lynas Corp, an Australian company, stay out of China’s control despite its dominance on the global rare earth’s chain. This company operates a plant in Malaysia. Also, it’s part of the Texas project, and it involves bringing rare earth’s compound maker.
Lynas Corp (LYC.AX) is not under China’s control when it comes to the power of international processing volume. The capacity is almost total, yet it’s excluding this Australian company, which runs a separation plant. The plant is in Malaysia.
The United States or the US Department of Defense committed financing for two rare earth separations regarding US soil. It’s a small step to the stated goal of Trump’s administration, and it’s breaking the dependency of the country on supplies of significant minerals coming from China.
The US was dependent on imports of rare earth metals and compounds last year and the previous years before that. China stayed the biggest supplier, having about 80% of imports, and the details were as per the United States Geological Survey (USGS).
The dependency on China regarding minerals has significant uses through an extensive spectrum of military and civilian applications. It’s becoming more challenging as Sino-US relations decline.
On the other hand, as the US searches for unions with concurring countries, and it needs a mixture of direct sustenance from the US government. There’s a long-term emphasis on the process chain, which has six stages, and it’s from ore to rare earth magnet.
Now, the US produces rare earth minerals at the Mountain Pass mine, a reopened area in California. The location had a bankruptcy issue back in 2017, which is by MP Materials.
MP Materials is an investment vehicle that receives US funds from QVT Financial and JHL Capital Group.
The mine formed 26,000 tons, and these are all light rare earth oxide. These were in concentrate form last year, and it’s accounting for 12% of international production, as per USGS.
The dominance of China, being in the first-state of international rare earth’s chain, is starting to weaken. One reason is partly because of Mountain Pass’s return. Another reason is partly because of a movement of highly-polluting rare earth’s mining, which is substantial. These came from China to Myanmar, and it produced 22,000 concentrate-tons.
On the other hand, the international processing capacity’s control of China is nearly whole. The only exception is the Australian company that’s not a part of the list, which is Lynas Corp (LYC.AX). This company controls a separation plant, which is also located in Malaysia, the same as China’s end-destination for displacement.
Whatever miners get from mining Mountain Pass, these currently ship out to China. From there, China will initiate the upgrades to compounds. After the process, they ship the products back to the US.
Lynas is part of the Texas project, which brings together rare earth’s compounds maker. The only company out of China to have involvement with rare earth concentrates’ commercial-level separation.