Lynas Rare Earths signs $137m offtake, floor price with US Department of War
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The news: Lynas Rare Earths has signed a USD96 million ($137.22 million) binding letter of intent to finalise an offtake agreement with the US Department of War at a floor price of USD110 per kilogram to supply NdPr over a four year period.
The context: The letter of intent sets a framework to finalise an agreement for the supply of light and heavy earth oxides to support “US national security and supply chain resilience objectives”, according to the company.
The agreement marks a shift from original plans for the Department of War to buy rare earths oxides from Lynas’ proposed heavy rare earth processing facility at Seadrift, Texas, which is facing “significant uncertainty as to whether the construction” will proceed.
Lynas said it is continuing to discuss further supply arrangements, including for heavy rare earth oxides.
What they said: “Lynas is pleased to sign this binding Letter of Intent with the US Department of War. Through this agreement, the US Defense Industrial Base will continue to have access to light and heavy rare earth oxides that are essential for modern manufacturing,” outgoing Lynas CEO and managing director Amanda Lacaze said.
“We thank the US government for working with Lynas to reach this mutually beneficial arrangement and look forward to finalising the definitive agreement in due course and continuing our productive engagement with the US government.”
The source: ASX
