AFP – One of the world’s largest rare earths producers outside China reported slumping net profits yesterday, pointing to a “challenging” market for the hard-to-source metals used in renewable energy technologies.
Australian miner Lynas Rare Earths digs up and refines so-called “rare earth elements” used in the manufacture of smart phones, wind turbines and electric vehicle (EV) motors.
The firm’s net profit plummeted 85 per cent to USD3.75 million (AUD5.9 million), full year results for 2024 showed.
“Market conditions remained challenging as rare earths market pricing continued at low levels,” the firm said. “The rare earths market continues to be subject to complex influences.”
Although revenue grew eight per cent to USD161 million, this was partly offset by the increased cost of production. The “increased geopolitical focus on rare earths” had complicated the market, Lynas said.
Lynas said China’s per kilogramme (kg) price for neodymium and praseodymium alloy – a metallic mix more commonly called “NdPr” – had dropped from USD56/kg to USD49/kg. NdPr alloy is used to make strong magnets that help power EV motors and other machines. Lynas is one of the few non-Chinese firms in a China-dominated market.
