SMM5, 21 Feb. according to foreign media reports, Australian rare earth producer Lynas Corp said on Monday that it had signed a memorandum of understanding with Blue Line Corp of the United States to set up a rare earth separation plant in the United States, which would be controlled by Lynas.
The two companies said the proposed joint venture would focus on separating heavy rare earths such as dysprosium and terbium and would become the only large producer of medium and heavy rare earths outside China and could expand to produce light rare earths in the coming years.
Rare earths are made up of 17 elements and are essential raw materials for many highly sophisticated manufacturing industries. Taking the application of rare metal yttrium in the electronic field as an example, the components composed of yttrium can be used in the fields of surgery, digital communication, distance and temperature detection, industrial cutting and welding. The United States is highly dependent on rare earths imported from China.
Demand for rare earths is expected to grow by more than 8 per cent this year as sales of electric vehicles continue to grow, according to Roskill, a consultancy.
Lynas is currently the world's largest producer of light rare earths, with the exception of Chinese companies. The rare earth separation plant is designed to provide medium and heavy rare earths, so it can fill a key gap in the rare earths supply chain for US manufacturers.
The establishment of the joint venture is also proof that countries want to have a say in this vital rare metal.
Lynas reported last month that rare earth oxide production rose nearly 33 per cent in the third quarter of fiscal year 18-19.
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