Supply chain diversification trend benefits Australian producers.
Western industry is increasingly seeking alternatives to China’s rare earth supplies, a development that is benefiting Australian producer Lynas Rare Earths. In its half-year results released today, the company reported significant growth in revenue, operating earnings, and net profit. For the six-month period ending December 31, 2025, Lynas generated revenue of $218 million, representing a 63% increase compared with the same period last year. Net profit surged to $55 million, an increase in the four-digit percentage range year-over-year. However, according to Reuters, the results fell short of analyst expectations.
During the reporting period, Lynas also made progress in producing heavy rare earth elements (HREEs), securing its first supply contracts in this segment. To support this business, the company plans to expand its existing production capacity in Kuantan, Malaysia. In the past six months, Lynas produced 35 tonnes of dysprosium and terbium in Kuantan. These elements are considered strategically critical. China, the dominant global supplier, has imposed strict export controls on several rare earth elements, including dysprosium and terbium, affecting global availability and reinforcing the strategic importance of non-Chinese suppliers.
Operations were negatively impacted by power supply disruptions in Kalgoorlie, Australia. At this site, ore concentrate from Lynas’ Mt Weld mine is processed before being shipped to Malaysia for refining. The electricity issues temporarily constrained processing operations.
Meanwhile, plans to build a heavy rare earth processing facility in the United States, a project supported by US Department of Defense funding, remain subject to significant uncertainties, according to the company.
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