By Rhiannon Hoyle
Lynas Rare Earths has secured a floor price for some rare earths it sells to Japan in line with a price guaranteed by the Pentagon to its American rival, helping underpin earnings for the Australian company as it expands production of minerals critical to making everything from cars and wind turbines to jet fighters.
Under a revised supply agreement, Japan Australia Rare Earths, co-owned by state-run Japan Organization for Metals and Energy Security and the trading house Sojitz, will commit to buying 5,000 metric tons of neodymium-praseodymium for Japanese industry annually to 2038 with a floor price of US$110 a kilogram, Lynas said.
The joint venture will also commit to buying half of all the heavy rare-earth oxides Lynas produces, while the Australian company will make 75% of its heavy rare-earth volumes available to Japanese industry, Lynas said.
The deal reflects an intensifying global race to shore up supplies of rare earths, which are mostly produced by China. Buyers fear being cut off amid geopolitical tensions.
Beijing has recently launched a series of economic reprisals targeting Japan for remarks Prime Minister Sanae Takaichi made late last year about Taiwan. Last month, China banned the export of rare earths and other goods with potential military uses to several major Japanese companies.
The U.S. has similarly sought to loosen China's chokehold on rare earths, including the deal last year between the Pentagon and MP Materials that also guaranteed $110 a kilogram for neodymium-praseodymium, used to make rare-earth magnets.
Lynas said its revised supply agreement, announced late Tuesday, "reflects the rapid evolution of the rare earths market."
It comes after Lynas built a new production line that last year produced the first separated heavy rare earths available commercially outside of China in decades. In August, the company raised capital to speed up its expansion.
"This new agreement will ensure continued reliable supply of rare earth products that are strategically important to Japanese industry and its global market, and at the same time, the implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations," Chief Executive Amanda Lacaze said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
March 10, 2026 19:08 ET (23:08 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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