Lynas has reached an agreement with the United States to build a rare earth separation plant that will produce about 5000 tons per year.

According to recent reports, Lynas Rare Earths Ltd. An agreement has been reached with the US government to establish a commercial rare earth separation plant in the United States through Lynas USA LLC, a wholly owned subsidiary of the company. This cooperation with the Department of Defense is sponsored by the third Defense production Law Program in the Pentagon Office of Industrial Policy, which will eventually be led by the Office of the Deputy Minister for Purchasing and maintenance.

The project is planned to be completed in accordance with the Department of Defense schedule and is part of the Lynas 2025 program. Detailed costs are still being determined; Lynas hopes the Defense Department's funding limit will not exceed $30 million. Under the agreement, Lynas will also contribute about $30 million. The plant is expected to be located in Texas.

Once operational, the plant is expected to produce about 5000 metric tons of rare earth products each year, including about 1250 praseodymium and neodymium. The plant will be able to receive materials directly from the cracking and leaching plant developed by Lynas in Kalgoorlie, Western Australia.