Lynas Increases NdPr Output at Malaysian Operations: Key Insights into Growth and Future Plans

Lynas Rare Earths

Lynas Rare Earths, an Australia-listed mining giant, has reported an increase in its neodymium-praseodymium (NdPr) output for the July-September 2024 quarter. The company’s Malaysian operations produced 1,677 tonnes (t) of NdPr oxide, a critical material for magnet manufacturing. This marks a notable increase from 1,504t in the previous quarter (April-June 2024) and 1,526t in the same period last year.

Despite an overall increase in NdPr output, Lynas’ total rare earth oxide production reached 2,722t during the period. This is a 24% increase compared to the previous quarter, though it represents a 24% decrease compared to the same quarter in 2023. While the company’s production capacity is growing, it remains focused on its target to achieve a 10,500t per year NdPr capacity by the fiscal year 2024-2025.

During the quarter, Lynas sold 2,837t of rare earth oxides, up by 5% compared to a year earlier, though slightly lower by 12% compared to April-June 2024. Despite the increase in sales volume, the company’s revenue declined by 5%, totaling A$120.5 million ($79.1 million). This drop was attributed to a decrease in the average selling price of rare earth products, which fell 9% to A$42.5 per kilogram.

Lynas is continuing to expand its operations, with significant progress at its Mount Weld project in Western Australia. This expansion is key to supplying the Lynas Malaysia facility and supporting future growth, particularly as the company ramps up production for its new Kalgoorlie facility in Western Australia. Notably, Lynas has completed the first stage of a concentrate dewatering circuit at Mount Weld and has already begun operations. The second stage of this project is expected to be completed by the end of the 2024-2025 fiscal year.

The Malaysian plant has also processed its first batch of mixed rare earth carbonate (MREC) from the new Kalgoorlie facility, marking another step forward in the company’s ambitious production ramp-up. As the quarter continues, Lynas expects to continue increasing output, with further advancements in both production and processing capabilities.

Lynas’ Ongoing Commitment to Expansion and Innovation

Lynas continued focus on expanding its production capacity, both in Malaysia and Western Australia, is a key factor in its long-term growth strategy. The ramp-up of the Kalgoorlie plant and the successful integration of new technologies at Mount Weld are expected to provide Lynas with the resources needed to meet the increasing global demand for rare earth metals, particularly NdPr, which is essential for electric vehicle (EV) motors, wind turbines, and other high-tech applications.

With the world increasingly relying on these critical minerals, Lynas’ position in the market looks promising. However, the company faces challenges, such as fluctuating commodity prices and increasing competition in the global rare earths sector. Lynas’ ability to scale up production while maintaining profitability will be key to its success in the coming years.