Leading non-Chinese rare earth producer and U.S. magnet manufacturer announce partnership.
Australian company Lynas, the largest producer of rare earths outside China, is set to partner with Noveon Magnetics, a U.S. manufacturer of rare-earth magnets. On Wednesday, the signing of a corresponding Memorandum of Understanding (PDF) was announced. The goal is to establish a strategic partnership to strengthen the U.S. rare earth supply chain, supplying both civilian and military industries.
Lynas mines rare earths at its Mount Weld site in Australia and refines the materials at its plant in Malaysia. In addition, the company began initial production steps in Australia nearly two years ago. With support from the Pentagon, Lynas plans to build another separation facility in the U.S.; however, the continuation of the project currently faces uncertainties. Lynas is also the first non-Chinese supplier of heavy rare earths, whose production remains heavily concentrated in China.
Noveon operates a magnet factory in San Marcos, Texas, with a current capacity of 2,000 tons per year. The company says this could be scaled up to 10,000 tons annually. For raw material supply, Noveon relies on emerging Western supply chains and also incorporates recycled materials.
Expanding the Middle of the Value Chain
The two companies currently cover mainly the upstream and downstream parts of the rare earth value chain. The partnership also aims to develop the intermediate steps, namely the production of metals and alloys for further processing into magnets. Specific details have not been disclosed.
According to the joint statement, the planned collaboration is a “direct response to supply chain disruptions and end-user demand”. China, which dominates the global rare earth market, imposed export restrictions in April on certain rare earth elements that are also used for high-performance magnet production. Since then, the development of alternative Western supply chains has accelerated, led primarily by the U.S.
Photo: iStock/xiao zhou