Lynas posts record profit on rare earths demand

Rare earth production line at Lynas’ plant in Kuantan, Malaysia. (Image taken from Lynas’ presentation.)

Australia’s Lynas Rare Earths Ltd posted a record first-half profit on Friday, helped by a surge in demand for the minerals used in electric vehicles amid a global push for reducing carbon emissions.

Demand for neodymium and praseodymium (NdPr), one of the most important minerals that Lynas mines, has soared in recent years as countries and companies try to tackle climate change.

The mineral is used by automakers to make magnets for electric vehicles. Rare earths are also used in a wide range of everyday goods such as iPhones and laptops.

The result reflected the continued strength of the market and robust customer demand for rare earths, Chief Executive Officer Amanda Lacaze said in a statement.

“Our customers expect demand will grow strongly as we move further into FY22,” she added.

The world’s largest producer of rare earths outside China said net profit after tax for the six months ended Dec. 31 came in at A$156.9 million ($113 million), a near four-fold jump from the A$40.6 million recorded a year ago.

Sales revenue was A$314.8 million, compared with A$202.5 million from a year earlier. The company did not declare an interim dividend.

($1 = 1.3943 Australian dollars)

(By Tejaswi Marthi; Editing by Maju Samuel and Aditya Soni)

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