(March 10): Lynas Rare Earths Ltd won a commitment from Japan to pay guaranteed long-term prices for the critical materials, the latest sign of the enduring impact of China’s supply squeeze.
Japan committed to take at least 5,000 tons a year of neodymium-praseodymium oxide until 2038, Lynas said in a statement Tuesday. The deal also includes a price floor of US$110 ($140) a kilogram, plus a separate pledge for Japan to buy at least half of the highly-prized “heavy” rare earths produced by the Australian firm.
Lynas — one of only two major rare earths miners outside Beijing’s orbit — has been backed by Japan’s government and corporates for more than a decade. The supply deal reflects intensifying global efforts to secure access to raw materials, after China used export controls as a trade weapon in 2025.
The agreement will provide reliable access to products that are strategically important to the Japanese industry, Lynas chief executive officer Amanda Lacaze said in the statement. “The implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations,” she said.
The co-signatory of the deal with Lynas is Japan Australia Rare Earths BV, a special purpose vehicle created jointly by the Japan Organization for Metals and Energy Security, and the trading house Sojitz Corp.
Requests for comment from JOGMEC and Sojitz did not receive responses outside of working hours in Japan.
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Lynas said up to 75% of its heavy rare earths supply would be made available to Japan. The company started producing the elements — dysprosium and terbium — last year, making it one of the few sources outside China. The so-called heavies are crucial additives for high-performance magnets in electric vehicles, robots and military equipment, and were a pressure point in the supply crisis last year.
Western rare earths suppliers — and the Trump administration — have argued that floor prices are necessary to bolster a market that had been previously crushed by an influx of low-cost Chinese materials. When the Pentagon made a major investment in MP Materials Corp last year, it also pledged a minimum of US$110 a kilogram for neodymium-praseodymium, the main building block for rare-earth magnets.
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