Japan Deepens Rare Earths Ties With Lynas as World Seeks Supply

Article content

(Bloomberg) — Lynas Rare Earths Ltd. won a commitment from Japan to pay guaranteed long-term prices for the critical materials, the latest sign of the enduring impact of China’s supply squeeze.

Article content

Japan committed to take at least 5,000 tons a year of neodymium-praseodymium oxide until 2038, Lynas said in a statement Tuesday. The deal also includes a price floor of $110 a kilogram, plus a separate pledge for Japan to buy at least half of the highly-prized “heavy” rare earths produced by the Australian firm.

Article content

Article content

Article content

Lynas — one of only two major rare earths miners outside Beijing’s orbit — has been backed by Japan’s government and corporates for more than a decade. The supply deal reflects intensifying global efforts to secure access to raw materials, after China used export controls as a trade weapon in 2025. 

Article content

Article content

The agreement will provide reliable access to products that are strategically important to the Japanese industry, Lynas Chief Executive Officer Amanda Lacaze said in the statement. “The implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations,” she said.

Article content

The co-signatory of the deal with Lynas is Japan Australia Rare Earths B.V., a special purpose vehicle created jointly by the Japan Organization for Metals and Energy Security, and the trading house Sojitz Corp.

Article content

Requests for comment from JOGMEC and Sojitz did not receive responses outside of working hours in Japan.

Article content

Lynas said up to 75% of its heavy rare earths supply would be made available to Japan. The company started producing the elements — dysprosium and terbium — last year, making it one of the few sources outside China. The so-called heavies are crucial additives for high-performance magnets in electric vehicles, robots and military equipment, and were a pressure point in the supply crisis last year.

Article content

Western rare earths suppliers — and the Trump administration — have argued that floor prices are necessary to bolster a market that had been previously crushed by an influx of low-cost Chinese materials. When the Pentagon made a major investment in MP Materials Corp. last year, it also pledged a minimum of $110 a kilogram for neodymium-praseodymium, the main building block for rare-earth magnets.

Article content