Lynas to supply rare earth magnets to US

Noveon Magnetics and Lynas Rare Earths (ASX: LYC) have signed a memorandum of understanding (MOU) to establish a scalable and domestic US supply chain for rare earth permanent magnets.

Under the agreement, the companies will collaborate to develop a rare earth value chain in the US from the supply of separated rare earth oxides to the manufacturing of rare earth permanent magnets to serve key US defence and commercial customers.

The scope of the agreement includes the provision of both light rare earth (LRE) and heavy rare earth (HRE) materials, developing expanded metal, alloy and magnet production and supplying high performance finished magnets to end-users across defence, automotive and industrial sectors.

Noveon Magnetics chief executive Scott Dunn comments on the partnership.

“Partnering with Lynas Rare Earths will allow our two companies to build on our proven capabilities to accelerate the development of a secure and sustainable domestic magnet supply chain,” he said.

“Together we can offer a total solution today, not five years from now, that meets immediate US economic and national security needs while building greater capacity and ensuring long-term supply chain resilience for the US

“This collaboration reflects our shared belief that sector-wide alignment and bold, coordinated action and leadership are essential to achieving supply independence. The time to act is now, and this partnership delivers what the market and the US government need most: capacity, certainty and speed.”

This agreement is a direct response to supply chain disruptions and end-user demand, Noveon Magnetics and Lynas Rare Earths have committed to finalise a definitive agreement and work closely with customers and the US Government to ensure supply continuity for critical applications.

Lynas Rare Earths chief executive and managing director Amanda Lacaze comments on the MOU.

“This partnership with Noveon Magnetics supports our Towards 2030 growth strategy and our commitment to delivering a reliable and sustainable supply of rare earths to outside China manufacturing supply chains,” she said.

“By combining our world-class rare earths mining and processing expertise with Noveon’s proven downstream manufacturing capabilities, we can provide immediate and practical support to US manufacturers with a secure and traceable supply of high-performance magnets.

“Both companies are committed to working with US policymakers, agencies and customers to ensure this supply chain is protected, scalable, and aligned with national interests.”