Lynas Rare Earths has signed a framework agreement with LS Eco Energy, a subsidiary of LS Cable & System, to form a partnership for producing rare earth metals.
As per the agreement, the companies have committed to negotiating a definitive agreement for a long-term arrangement to process metals.
This arrangement will involve various Lynas products at a new rare earth metal facility that LS Eco Energy will build in Vietnam.
The facility will help transform Lynas' rare earth oxides into metal form for use in permanent magnet production.
Once formal agreements are in place, the new facility is expected to meet rising customer demand and will allow Lynas to supply additional metallised neodymium-praseodymium and selected heavy rare earth products such as samarium, dysprosium and terbium through its arrangement with LS Eco Energy.
The initial focus of the metal-making circuits will be on samarium metal production.
The agreement also outlines intentions to forge separate definitive agreements involving cross-subscription of convertible instruments between Lynas and LS Eco Energy, each valued at approximately A$30m ($20.89m).
Lynas Rare Earths CEO and managing director Amanda Lacaze said: “Lynas is delighted to work with such a trusted strategic partner as LS Eco Energy to develop new rare earths metallisation capability.
“Secure access to metallisation is critical to support a robust rare earths industry and participating in the metal-making supply chain is a key pillar of our Towards 2030 growth initiative.
“LS Eco Energy brings significant manufacturing expertise to the partnership, whilst Lynas has deep experience in the rare earths market. This framework agreement demonstrates our joint commitment to continuing to grow industry capability and deliver success for both businesses.”
Earlier this month, Lynas and Japan Australia Rare Earths signed a memorandum of understanding to collaborate in the rare earths value chain, focusing on the exploration and development of rare earth elements and related minerals.
