After the long-term contract with Japan, Lynas (LYSDY.US) has once again received a nearly billion-dollar rare earth order from the Pentagon.

Lynas Rare Earths Ltd. (LYSDY.US) has signed a binding memorandum of understanding to supply rare earth oxides to the Pentagon over the next four years. The company stated in a press release on Monday that the agreement is worth $96 million and covers heavy rare earths and light rare earth products. The memorandum of understanding "lays the foundation for finalizing a supply agreement". These key minerals are widely used in wind turbines, electric vehicle motors, and even advanced military equipment, making them crucial for national security and supply chain resilience. The statement also specifies that the minimum price for neodymium praseodymium oxide in this collaboration is $110 per kilogram. Lynas CEO Amanda Lacaze stated in the release, "Through this agreement, the U.S. defense industrial base will continue to have access to essential light and heavy rare earth oxides required for modern manufacturing." China holds almost a monopoly in the global rare earth supply chain, and Lynas is one of only two large rare earth mining companies outside of China. Currently, the company has a mine and processing plant in Western Australia and a production facility in Malaysia. Lynas mentioned in the release that they plan to build a heavy rare earth processing plant in West Texas, but the project still faces "significant uncertainties" in terms of whether it will proceed smoothly. It is worth noting that just a week before this agreement was signed, Lynas had also signed a purchase agreement with Japan Australia Rare Earths BV, representing Japanese companies. This agreement is valid until 2038 and stipulates supplying a minimum of 5000 tons of neodymium praseodymium oxide to Japan annually, also at a price of $110 per kilogram.