Lynas' Texas Rare Earth Plant Plan Stalled Over Wastewater Permit Issues

Published: Nov 28, 2025 18:01

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Lynas Rare Earths of Australia is unlikely to proceed with its plan to build a rare earth processing plant in Texas due to unresolved wastewater disposal permit issues. At the annual shareholders' meeting on November 26, Chairman John Humphrey stated that no progress had been made on the matter in recent months, and the project, with an annual capacity of 2,500–3,000 mt of heavy rare earth and 5,000 mt of light rare earth, is not expected to move forward. As early as April, Lynas warned that project costs could rise due to water treatment challenges. Then in October, the company expressed significant uncertainty about the project's progress. In 2023, the US Department of Defense agreed to provide up to $258 million in funding to support Lynas's Texas plant plan. The company intends to base its operations on raw materials from its existing light and heavy rare earth plant in Malaysia and enter into a product offtake agreement with the Department of Defense on commercial terms.

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