Thought I’d drop an initial REEx forum update on Lynas (ASX: LYC) as there's been a few important developments worth talking about — especially given the shifting global supply chains and Australia’s building role in ex-China critical minerals.
Would love to hear your views.
Key Recent Developments:
- Kalgoorlie cracking & leaching plant now operational
After years of delays and regulatory hurdles, Lynas’ Kalgoorlie facility is finally online. This allows them to process concentrate domestically and reduces dependency on Malaysia. - Malaysian license extended – with conditions
Malaysia extended Lynas’ operating license through 2026, but with the same restriction on cracking and leaching. The local government continues to pressure Lynas on waste disposal and environmental transparency. - Xi's Recent Malaysian Visit
Will China have placed pressure on the Malaysian Govt to make life hard for Lynas? - US Department of Defense partnership expands
Lynas received additional funding from the DoD to accelerate its rare earth separation facility in Texas. This facility is central to U.S. efforts to decouple from Chinese supply. However, I heard that they are having permit issues that could delay it? Anyone know any more on this? - Strong quarterly production
Despite market headwinds, Lynas produced 4,800 tonnes of REO in Q1 2025, with NdPr oxide holding steady. Demand remains resilient in Japan, Korea, and the U.S. - ESG improvements in motion
Lynas is gradually improving transparency around tailings and energy use. They recently released a new sustainability roadmap, pledging net-zero Scope 1 & 2 emissions by 2045.
What am i keeping an eye out for with Lynas?
- Will the Kalgoorlie plant ramp up quickly enough to hit nameplate capacity by year-end? And is it a long-term asset or just a regulatory workaround?
- How much longer can Lynas rely on Malaysia without cracking & leaching there? And will China influence any more conditons on Lyans's facility there?
- Can their U.S. facility get to commercial production in time to meet rising DoD demand?
- Will ESG improvements be enough to fend off rising pressure from activist investors?
Would love to hear your views.
