The new oil

Rare earths, Australia's Lynas negotiates with US for extra refinery costs in Texas

'Lynas rare earths' seeks US support for refinery in Texas, but fears impact of tariffs. Expansion and rising costs.

Cosa sono le terre rare e perche' sono cosi' ambite

1' min read

1' min read

Australia's 'Lynas rare earths' company is in talks with the Trump administration to counter rising costs for the refinery it is building in Texas while warning that the president's tariff agenda could threaten the project.

Lynas backed by Australia's richest person Gina Rinehart

"While pre-construction activities are underway, further expenditures are required to mitigate the ecological impact of the wastewater," Lynas announced on 28 April 2025 - a company backed by Australia's richest person Gina Rinehart (read Forbes article) - are in discussion with the US government on the issue."

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Lynas, headquartered in Perth, is the largest supplier outside China of rare earths, used for many productions, from smartphones to defence applications.

China's domination of the rare earth industry has caused anguish in the US, which is trying to strengthen alternative supply chains.

In response to punitive tariffs imposed by Washington, Beijing added seven rare earths to its export-controlled list.

The American Lynas Project

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"We are also reviewing the potential cost implications for the US project as a result of the recent announcements on global tariffs," Lynas said.

Lynas produces so-called light rare earths, used inmagnets for electric vehicle motors, wind turbines and ammunition.

It is also about to enter heavy industry with new refining capacities in both the US and Malaysia, where it has an existing site that will begin processing many of the metals restricted by Chinese export controls starting this year.

Lynas currently sources ore for its refineries from its Mt Weld mine near Kalgoorlie in Western Australia, according to its website.

Esso will send ore from there to the Texas plant once it is operational.

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