On March 26, Lynas Rare Earths Ltd announced the partnership, which will see the companies work towards a definitive agreement for long-term metal processing covering a range of Lynas products.

The new facility will be constructed by LS Eco Energy in Vietnam and complement Lynas' existing metal making arrangements, transforming rare earth oxides into metal used in permanent magnets. Subject to final agreements, it will serve increased customer demand and enable Lynas to supply additional metallised products, including neodymium-praseodymium and selected heavy rare earths, through the partnership with LS Eco Energy. The metal making circuits will be staged, with samarium metal production as the priority.

The framework agreement also includes a commitment to enter into separate definitive agreements for the cross-subscription of convertible instruments between the two companies, each valued at approximately $29 million. The cross-investment demonstrates each company's commitment to the success of the partnership.

Amanda Lacaze, CEO and managing director of Lynas Rare Earths, said the company is delighted to work with LS Eco Energy to develop a new rare earths metallisation capability.

"Secure access to metallisation is critical to support a robust rare earths industry, and participating in the metal making supply chain is a key pillar of our Towards 2030 growth initiative," she said. "LS Eco Energy brings significant manufacturing expertise to the partnership, whilst Lynas has considerable experience in the rare earths market. This framework agreement demonstrates our joint commitment to growing industry capability and delivering success for both businesses."