French media: Rare Earths – Australia Levels the Playing Field in Competition with China
An exclusive feature published by Le Figaro in its economic section, titled "Rare Earths: Australia Levels the Playing Field in Competition with China," highlights that the global landscape of rare earth markets is undergoing significant change.
As one of the few companies worldwide capable of challenging China in the rare earth sector, Lynas Rare Earths recently signed a long-term agreement with a Japanese consortium and established a minimum price floor. This move is crucial for ensuring the sustainability of its operations amid China’s near-monopoly over production and refining of these highly sought-after metals.
The article points out that China currently holds an overwhelming advantage globally: approximately 70% of mining and over 80% of refining capacity.
Under the agreement, Japan will purchase at least 5,000 tons of praseodymium-neodymium annually through 2038, and may acquire up to three-quarters of the output. More importantly, the contract sets a minimum price of $110 per kilogram—significantly higher than the $49 and $74 per kilogram seen in the past two years. Japan is opting for a higher cost in exchange for supply security. Analysts note: "The additional 50% cost essentially represents a safety premium—buying stability and reliability."
The article states that similar strategies are spreading. In October 2024, the U.S. Pentagon signed an agreement with Mountain Pass Materials to take over its entire output, also setting a price floor of $110 per kilogram. Subsequently, the U.S. entered into a procurement agreement worth approximately $96 million with Lynas.
Experts observe that this price is close to actual production cost. “At the time, China’s rare earth prices were $52, but after the agreement, they quickly rose to $90, indicating that previous prices had been artificially suppressed.”
This trend is likely to be emulated by more countries. Multiple parties—including Europe and India—are actively seeking to reduce their dependence on Chinese rare earth supplies, as these elements have become critical resources for electric vehicles, wind power, medical imaging, and even fighter jets.
Against this backdrop, the U.S. and Australia reached a $4.6 billion cooperation agreement in 2025 to advance investments in mining and refining. The first project, led by Alcoa and Sojitz, involves building a gallium plant in Australia, aiming to produce 10% of the world’s gallium output—while currently, 98% of global gallium production comes from China.
Meanwhile, Lynas is also enhancing its own capabilities. Its plant in Malaysia has begun producing samarium oxide, a key material widely used in high-end electronics and aerospace applications. The company states this marks “unmatched capability outside of China.”
Source: rfi
Original article: toutiao.com/article/1861551135957000/
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