LYC Lynas Rare Earths Limited

By Rhiannon Hoyle

Lynas Rare Earths said it has signed an updated contract with the U.S. Defense Department to build a heavy rare earths plant in Texas that includes a more-than doubled fiscal contribution from the government for the project.

Australia-listed Lynas said the U.S. government now intends to contribute roughly $258 million to the project, up from about $120 million in June 2022. The revised contract follows detailed design work and cost updates since the initial design was completed, Lynas said.

The company recently bought a large site in Seadrift, Texas, where it intends to develop both heavy and light rare earths separation plants.

"This further support by the DoD demonstrates the priority being given to developing robust and resilient rare earth supply chains," said Amanda Lacaze, the miner's chief executive.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

July 31, 2023 20:07 ET (00:07 GMT)

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