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Lynas eyes first dysprosium, terbium HREE production in CY25

ASX 200, ASX News, Materials
ASX:LYC      MCAP $5.757B
27 June 2024 09:45 (AEST)

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Lynas Rare Earths (ASX:LYC) has announced it expects to produce the first dysprosium and terbium through Lynas Malaysia in the 2025 calendar year.

Ore will be taken from Mt. Weld. Both so-called ‘heavy’ rare earth elements (HREEs) are used in high performance magnets and the hardware that goes into electronic devices.

Notably, the company will offer these two REEs to market on the back of a new downstream process being utilised at the Malaysian circuit.

The company had been HREEs in a form called SEGH prior, a mixed compound containing mixed Samarium, Europium, Gadolinium, Holmium, Dysprosium and Terbium.

By tweaking the process when it comes to applying solvents to SEGH, Lynas has eked out a way to produce dysprosium and terbium on their own.

It will, however, need to spend $25M in CapEx to get there.

“As a result of the separation of Dy and Tb from the SEGH compound, Lynas’ HRE product range will increase to 5 products: Dy; Tb; unseparated Samarium/Europium/Gadolinium; Holmium concentrate; and unseparated SEGH,” the company wrote on Thursday.

Management described excitement for the new offering.

“The initial separation of Heavy Rare Earths at our Malaysian Facility is an exciting development for our Company and the first step towards offering an expanded suite of Heavy Rare Earth products,” Lynas CEO Amanda Lacaze said.

Lynas remains the tenth most shorted stock on the market with shorts reflecting 8.41% – not as high up in the rankings as the stock used to be.

LYC last traded at $5.98.

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