U.S. DoD STRENGTHENS SUPPORT FOR LYNAS U.S. FACILITY
2 Aug 2023
Lynas Rare Earths Ltd (ASX: LYC, OTC:LYSDY) (“Lynas”) is pleased to announce that wholly owned subsidiary Lynas USA LLC has signed a follow on contract with the United States (U.S.) Department of Defense (DoD) for the construction of the Heavy Rare Earths component of the Lynas U.S. Rare Earths Processing Facility in Texas.
The updated contract is an expenditure-based contract under which all of Lynas’ properly allocable construction costs will be reimbursed. A contribution by the U.S. Government of approximately US$258 million is currently allocated to the Project. This is an increase from the approximately US$120 million announced in June 2022. The updated contract follows detailed design work and cost updates since the original design was completed.
Rare earths are critical inputs to advanced technologies in commercial and defence applications. This project, conceived and jointly supported by Lynas and the DoD, will strengthen supply chain resilience for responsibly produced rare earths as inputs to the United States’ burgeoning high-tech industry as well as U.S. and allied nation national security needs. On completion, this project will be the only scale producer of separated Heavy Rare Earths outside of China.
The contract is sponsored by the U.S. Government’s Industrial Base Analysis and Sustainment (IBAS) Program to support the development of a U.S. rare earth supply chain.