Lynas Secures Long-Term Rare Earth Supply Deal with Japan, Price Floor Locked Until 2038

Australian rare earths giant Lynas Rare Earths has revised its supply agreement with Japan, setting a price floor of $110 per kilogram for certain rare earth products exported to Japan—matching the guaranteed price the U.S. Department of Defense provides to its domestic competitors. Under the new agreement, Japan Australia Rare Earths—a joint venture between Japan Oil, Gas and Metals National Corporation (JOGMEC) and trading house Sojitz—will purchase 5,000 metric tons of neodymium-praseodymium (NdPr) annually through 2038. Additionally, the joint venture will acquire half of all heavy rare earth oxides produced by Lynas, while Lynas has committed to supplying 75% of its heavy rare earth output to Japanese industry. This move helps stabilize Lynas’ profitability and supports its expansion of production capacity for critical minerals used in electric vehicles, wind turbines, and defense equipment.