Lynas Rare Earths has signed a framework agreement with LS Eco Energy, a subsidiary of LS Cable & System, to form a partnership for the production of rare earth metals.
Under the agreement, the companies have committed to negotiating a definitive agreement for a long-term agreement to process metals.
This deal will involve several Lynas products in a new rare earth metals facility to be built by LS Eco Energy in Vietnam.
The facility will help transform Lynas’ rare earth oxides into metallic form for use in the production of permanent magnets.
Once formal agreements are in place, the new facility is expected to meet growing customer demand and will enable Lynas to supply additional metallized neodymium-praseodymium and select heavy rare earth products such as samarium, dysprosium and terbium through its agreement with LS Eco Energy.
The initial focus of the metal fabrication circuits will be the production of samarium metal.
The agreement also outlines intentions to forge separate definitive agreements involving the cross-subscription of convertible instruments between Lynas and LS Eco Energy, each valued at approximately A$30 million ($20.89 million).
Amanda Lacaze, CEO and CEO of Lynas Rare Earths, said: “Lynas is delighted to be working with such a trusted strategic partner as LS Eco Energy to develop new rare earth metallization capabilities.
“Secure access to metallization is critical to supporting a robust rare earths industry and participating in the metals manufacturing supply chain is a key pillar of our Towards 2030 growth initiative.
“LS Eco Energy brings significant manufacturing expertise to the partnership, while Lynas has deep experience in the rare earths market. This framework agreement demonstrates our joint commitment to continue growing industry capacity and achieving success for both businesses.”
Earlier this month, Lynas and Japan Australia Rare Earths signed a memorandum of understanding to collaborate across the rare earth value chain, focusing on the exploration and development of rare earth elements and related minerals.
“Lynas Partners with LS Eco Energy for Rare Earth Metals Production” was originally created and published by Mining Technology, a brand owned by GlobalData.
The information contained on this site has been included in good faith for general information purposes only. It is not intended to be advice on which you should rely, and we make no representation or warranty, whether express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content on our site.