Lynas Rare Earths of Australia has amended its supply agreement with Japan Australia Rare Earths, securing a firm annual commitment for 5,000 tonnes of neodymium-praseodymium, a key material for permanent magnets made from rare earths. Japan Australia Rare Earths has pledged to purchase half of Lynas's total output of heavy rare earths. Japan Australia Rare Earths, a joint venture between Japanese state-backed entity Japan Organization for Metals and Energy Security and trading house Sojitz, has provided Lynas with A$200 million to boost production of both heavy and light rare earth materials. CEO Amanda Lacaze stated that the agreement will ensure a "reliable" supply of rare earth products for Japanese industry. The deal locks in Lynas's total annual production capacity of up to 7,200 tonnes until 2038. It also sets a price floor of US$110 per kilogram for the committed volume of 5,000 tonnes. If prices exceed US$150 per kilogram, Japan Australia Rare Earths will receive 30% of the amount above that threshold, capped at US$10 million per year. Lynas noted in a press release that sales beyond this minimum quantity would require "mutual agreement" and would not result in any lost opportunities for the company. Magnets made from rare earths, though used in small amounts, are critically important and widely used in devices ranging from iPhones and washing machines to F-35 fighter jets, and they power everything from electric vehicles to military systems.
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