JARE and Lynas Rare Earth Supply Deal Explained

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JARE and Lynas Expand Rare Earth Supply Deal

The JARE and Lynas rare earth supply deal strengthens global access to neodymium-praseodymium (NdPr) and heavy rare earth oxides. The agreement ensures a stable supply for Japanese producers through 2038.

Japan Australia Rare Earths (Jare) commits to buying at least 5,000 tons per year of NdPr oxide from Lynas Rare Earths at a floor price of $110/kg. Additionally, JARE will purchase at least 50% of Lynas’ heavy rare earth output.

The deal expands on prior agreements, enhancing supply predictability for Japan’s rare earth-dependent industries. Lynas will also share 30% of upside prices above $150/kg for NdPr, capped at $10 million annually.

Supply Growth and Production Targets Under the JARE and Lynas Rare Earth Supply Deal

Lynas plans to supply up to 7,200 t/yr of NdPr oxide and 75% of heavy rare earth output over the deal period. This builds on the previous commitment covering 65% of dysprosium and terbium production.

The company produced 6,375 tons of rare earth oxides in H2 2025, a 19% increase year-on-year. By April 2026, Lynas will produce separated samarium, with gadolinium, yttrium, and lutetium expected by 2028. Terbium and dysprosium separation began in 2025, supporting higher-value rare earth markets.

Strategic Importance of Rare Earth Supply for Japan

Securing NdPr and heavy rare earths supports Japan’s advanced manufacturing and EV industries. By centralizing procurement through JARE, Japanese producers mitigate supply risk.

The agreement also aligns with global demand trends for permanent magnets and renewable energy technologies, both reliant on high-purity rare earth oxides.

SuperMetalPrice Commentary:
The JARE and Lynas rare earth supply deal highlights growing strategic collaboration between Australia and Japan in rare earths. Long-term contracts like this secure critical materials for advanced electronics and EVs. Meanwhile, production expansions and separated rare earth outputs position Lynas as a pivotal supplier in global rare earth markets through 2038.