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To: LoneClone who wrote (141525)	5/1/2020 4:16:55 PM
From: LoneClone	Read Replies (1) \| Respond to of 192884

Rare earths: MP Materials and LynasBlue selected to progress US-based heavy rare earth production roskill.com Posted 1st May 2020 in ?Industry news. By David Merriman After a prolonged assessment period which saw applications from multiple US and international parties, the US Department of Defence (DoD) selected MP Materials and LynasBlue to undertake Phase 1 of a plan to develop heavy rare earth separation capacity within the USA. LynasBlue is a joint venture between Blue Line Corporation and Lynas Corporation. Phase 1 of the project includes the planning and design of a rare earth separation facility, capable of producing separated rare earth compounds including heavy rare earth products, though no required production capacity or product type has been reported. The DoD will provide funds to undertake Phase 1 work as part of the US Defence Production Act. No amount has yet been assigned to available funds. Roskill View While the awarding of Phase 1 contracts is a positive for LynasBlue and MP Materials, it will undoubtedly be a disappointment to several unsuccessful parties looking to capture market share within the USA’s domestic rare earths market. Chinese dominance of the rare earth supply chain has long been a concern for the USA, though little direct action had been taken to support the formation of a regional or ‘China independent’ rare earth supply chain by the USA until the DoD’s involvement. LynasBlue has significant experience in rare earth processing and separation through Lynas’ Malaysian separation facility and Blue Line’s facility in Texas, USA; it currently sources material from Australian/Malaysian feedstock. The inclusion of MP Materials, which has a light rare earth operation, fits more closely with the USA’s current rare earth consumption which is weighted heavily towards light rare earths,specifically La compounds used in petroleum refining and Ce compounds used in auto catalysts. La and Ce compounds together formed 90% of the USA’s total rare earth demand in terms of volume in 2019, with the other light rare earths (Pr, Nd & Sm) forming 4% and the suite of heavy rare earths (Eu-Lu + Y) forming the remaining 6%. Whilst the requirements for rare earth products used in critical and military US applications include products containing heavy rare earths and other rare earth compounds, these products have long and technically demanding supply chains. The development of sizeable production capacity for high-quality rare earth permanent magnets and other high-tech rare earth components in the USA will require not only significant technical knowledge, but also considerable capital and time to design, commission, construct and ramp up. Without the simultaneous development of these downstream supply chains domestically, USA-produced separated heavy rare earth products may need to be exported for further processing, with China being the most likely destination for further added value. Roskill’s Rare earths: Outlook to 2029, 19th Edition report was published in December 2019 and details trends in rare earths production, consumption, trade and prices, as well as profiling the major industry players. Click here to download the brochure and sample pages for the report, or to accessfurther information. Image from MP Materials Contact the author This article was written by David Merriman. Please get in touch below if you wish to discuss further: Contact the author