Lynas Bets $500 Million on Rare Earths Market Expansion

5 responses

1. 

   Jack Lifton

   Subsidizing and industry, such as through the CHIPS act is just socialization of cost. All of us get to pay for the transfer of wealth to a lucky or corrupt few. The US semiconductor industry is profitable and rated AAA, financially as are the Taiwanese and Korean “chip” industries. The U.S. Congress does not understand the industrial policy of the Peoples Republic of China. It is not about throwing money at a problem (The US Congress’ specialty); it is about achieving a goal. China is a self-professed socialist economy, so of course it socializes costs. The chip industry is, in fact, seeing a decline in growth as demand pull subsides, but, of course, it will take low interest guaranteed loans and grants to beef up balance sheets and CAPEX, so as to keep the good times rolling at the bank for the executives and funds that most benefit.
   The American rare earth industry, by contrast with the CHIP industry is miniscule. It, in fact, needs a coordinated government backed effort to do a due diligence of the tiny domestic industry and select the most probable winners to support. If Lynas thinks it has a future in the American domestic economy, why does it need our money and guarantees? America needs to select not only companies but even more importantly to order our universities to focus on the key engineering and scientific studies needed to support mining, refining, fabrication and manufacturing. Social justice warriors are not hydrometallurgists; we need more of the one, we have more than enough of the other.
   Lynas had to fight a movement called Stop Lynas Save Malaysia when it was struggling to get its facility there licensed due to the prior bad acts of Japan’s Mitsubishi in improperly disposing of radioactive wastes from Malaysian rare earth ores. When will Americans create a movement called Stop Wasting our Money Save America from Itself. We need to look at critical mineral demands holistically. How do we get domestic ore transformed into critical EV components? It is not by giving money to friends of the administration to boost share prices.

   Aug 10, 2022 12:47 PM

   Reply
   1. 

      John Nichols

      Uncle sam has kicked in 150 million through the department of defence to un shackle itself from China, in relation to rare earths. Lynas will be kicking in more then this! DOD would spend this on pizzas over a 3 year period i am tipping. Tax payer money well spent.

      Aug 13, 2022 5:10 AM

      Reply
2. 

   Rare Earths Investor

   Thanks for writing.

   The article hints at possible future trouble in Malaysia for Lynas re., it’s waste disposal, but remember that even the Malaysians are now talking about mining their own RE deposits and may need some serious knowledge and assistance from the ROW leader in this field (unless they go in another direction).

   Lynas and its CEO know that this is very much a race in the RE sector to prime mover positioning. N. American RE entities want to take full advantage of this clear and increasing strategic drive by the Biden Admin’ in the green sector.

   The belief that niche RE entities have all this decade and the next to emerge is, IMHO, not the case. My reading suggests that a number of CEOs of leading RE entities are really already expressing this competitive viewpoint themselves.

   Again, I like the table metaphor in that there are only so many seats at e.g., the N. American RE sector (strategic) table and a good number of these already appear to be filled.

   OEMs are searching now, not tomorrow for RE supply for their value chains. They are concerned with their ESG compliance ‘image’ and presently, based on public disclosure (e.g., anyone notice GMs latest comment on Myanmar and the company’s future HRE supply) want to be associated with the most experienced higher profile RE mining and processing entities (e.g., ASM, MP, Lynas, Iluka, Arafura EF/NEO, Vital, etc). In other words, RE entities that are most likely to overcome production problems (which will no doubt arise for new processor facilities) and can quickly produce reliable and consistent RE materials for brand image-conscious mid and end-line manufacturers.

   Clearly, I hold Lynas (and several others mentioned) and my thesis for a slew of supportive reasons is that there is serious niche RE investor money to be made to 2024, never mind beyond for informed, selective RE investors.

   Again, thanks for writing. GLTA – REI

   Aug 10, 2022 1:26 PM

   Reply
3. 

   ksokwk

   Now is the era of globalization, and the global industrial chain is closely linked. Under such circumstances, it will not work for the United States to dominate or monopolize a certain field or market, or to artificially cut off or exclude a certain link of the chain.

   Aug 17, 2022 5:14 AM

   Reply
4. 

   TJGINDMGJ

   The U.S. rare earth industry requires a coordinated government-backed effort. In essence, America is wasting money and America will fail.

   Aug 24, 2022 3:44 AM

   Reply