Lynas Rare Earths and Japan Australia Rare Earths (JARE) have signed a memorandum of understanding (MoU) to collaborate on the rare earths value chain, focusing on the exploration and development of rare earth elements (REE) and related minerals.
This MoU is non-binding and hinges on the formation of definitive agreements.
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JARE was established by the Japan Organisation for Metals and Energy Security (JOGMEC), along with Sojitz Corporation.
Lynas and JARE are involved in a long-term senior loan agreement.
Under the MoU, the companies plan to create a framework for potential cooperation.
This includes mineral exploration and development, supplying additional feedstock for Lynas’ processing and separation facilities, considering offtake agreements for rare earth products from joint ventures and financial involvement from both parties.
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By GlobalDataA steering committee will be formed by Lynas and JARE to engage in discussions aimed at reaching mutually agreeable definitive agreements.
The signing of the MoU follows an announcement earlier this month regarding an updated availability and supply agreement between Lynas and JARE.
The agreement secures a firm offtake for 5,000 tonnes per annum of neodymium-praseodymium at a floor price of $110/kg, with provisions for shared profit when prices surpass $150/kg.
It also includes supplying up to 75% of all heavy rare earth oxides (HREOs) produced by Lynas to the Japanese market.
The revised availability and supply agreement, effective until 2038, represents a further step in the ongoing collaboration between Lynas and JARE.
This partnership aims to support both the Japanese industry and global rare earth supply sustainability by developing both existing and new resources.
The MoU aligns with Lynas’ “add resource and scale” objective within its Towards 2030 growth strategy.
This strategy includes expanding the Mt Weld carbonatite deposit, further exploring the extensive, high-grade Mt Weld ore body and sourcing new complementary feedstock.
Lynas Rare Earths CEO and managing director Amanda Lacaze said: “The MoU will bring together Lynas’ mineralogy and metallurgy expertise and world-class Mt Weld resource with the technical, financial and commercial expertise of our partners at JOGMEC and Sojitz Corporation.”
In October 2025, Lynas announced the construction of a new heavy rare earth (HRE) separation facility in Malaysia to meet growing demand for a dependable source of HRE oxides outside of China.
