A “challenging” market for the difficult-to-source metals used in renewable energy systems was indicated by the declining net earnings disclosed Wednesday by one of the biggest rare earths producers outside of China.
Lynas Rare Earths, an Australian miner, extracts and refines “rare earth elements” that are used in the production of electric car motors, wind turbines, and smartphones.
According to full-year figures for 2024, the company’s net profit fell 85 percent to US$3.75 million (Aus$5.9 million).
“Market conditions remained challenging as rare earths market pricing continued at low levels,” the firm said.
“The rare earths market continues to be subject to complex influences.”
Although revenue grew eight percent to US$161 million, this was partly offset by the increased cost of production.
The “increased geopolitical focus on rare earths” had complicated the market, Lynas said.
Lynas said China’s per kilogramme price for neodymium and praseodymium alloy — a metallic mix more commonly called “NdPr” — had dropped from US$56/kg to $49/kg.
Strong magnets that assist in powering electric vehicle motors and other machinery are made from NdPr alloy.
In a market dominated by China, Lynas is one of the few non-Chinese companies.
“World’s only significant producer of separated rare earth materials outside China” is how it positions itself.
About 90% of the world’s supply of rare earth elements is controlled by China, which vigorously defends its dominance.
Beijing has been accused of adopting state-imposed limits to regulate supplies and has prohibited the transfer of processing technology that could benefit adversary countries.
The US government has agreed to pay Lynas US$258 million to construct a new refinery in Texas in an attempt to break China’s sway.
Lynas operates the Mt Weld rare earths mine in Western Australia and a major processing facility in Malaysia.
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