Australia-based Lynas Rare Earths has signed a memorandum of understanding (MoU) with Japan Australia Rare Earths B.V. (JARE) to establish a framework for cooperation across the rare earths value chain, particularly in relation to exploration.
JARE is a special-purpose company established by the Japan Organization for Metals and Energy Security (JOGMEC) and Sojitz Corporation. Lynas and JARE are parties to a long-term senior loan facility.
The MoU, which is non-binding and subject to definitive agreements, follows the announcement of a revamped availability and supply deal between the two companies. The 12-year agreement includes a firm offtake for 5,000 tonnes per annum of neodymium-praseodymium with a US$110/kg NdPr floor price, an upside sharing arrangement when prices exceed US$150/kg NdPr, and supply to the Japanese market of up to 75% of all heavy rare earth oxides produced by Lynas.
“This MoU with our valued partners at JARE demonstrates our commitment to progressing the ‘Towards 2030’ growth strategy. Continuing mineral exploration and development is essential to provide the critical minerals needed for modern manufacturing,” explained Lynas Rare Earths CEO and Managing Director Amanda Lacaze.
“The MoU will bring together Lynas’ mineralogy and metallurgy expertise and world-class Mt Weld resource with the technical, financial and commercial expertise of our partners at JOGMEC and Sojitz Corporation. This is a successful combination, as we saw with the Mt Weld exploration drilling program, which was completed in 2024 and benefited from technical and financial contributions from JARE.
“We look forward to progressing this MoU with JARE and meeting our joint objective of developing sustainable and resilient critical minerals supply chains.”
Through the MoU, Lynas and JARE will establish a framework for potential cooperation, including mineral exploration and development, additional feedstock supply for Lynas’ processing and separation assets, potential offtake agreements for rare earth products from joint projects, and financial participation by both Lynas and JARE.
Source: Lynas Rare Earths