CANBERA (dpa-AFX) - Lynas Rare Earths Ltd. (LYC.AX, LYSDY, LYSCF) Monday said that its wholly owned subsidiary, Lynas USA LLC, has signed a binding Letter of Intent with the United States Department of War or DoW to finalize a rare earth oxide supply agreement.
Under the arrangement, the DoW will allocate approximately $96 million for the purchase of Light and Heavy Rare Earth oxide products from Lynas. The agreement sets a floor price of $110/kg for NdPr oxide, the company added.
The Letter of Intent establishes a framework for supplying these materials over a four-year period to support U.S. national security and supply chain resilience. The agreement follows a mutual decision to revise the original arrangement due to uncertainty surrounding the construction of the Heavy Rare Earth processing facility in Seadrift, Texas.
Commenting on the signing, Amanda Lacaze, CEO and Managing Director of Lynas Rare Earths said, 'Lynas is pleased to sign this binding Letter of Intent with the U.S. Department of War. Through this agreement, the U.S. Defense Industrial Base will continue to have access to Light and Heavy Rare Earth oxides that are essential for modern manufacturing.'
On the Australian Exchange, LYC.AX is currently trading up 1.40 percent on Monday at A$20.99.
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