LYSDY - Lynas: In The Right Place At The Wrong Time Due To Falling Rare Earth Oxide Prices
- The EV revolution is driving up demand for REOs, especially NdPr.
- Lynas is expanding rapidly and plans to be producing at least 10,500 tonnes of NdPr by 2025, with facilities in the US, Australia, and Malaysia.
- However, China has significantly increased REO production quotas and this has started to drive down prices.
- All major global REO producers are boosting output and the market is unlikely to be tight in the next several years.
- This means it’s unlikely we’ll see REO prices at April’s levels anytime soon and as much as I like Lynas, I’m bearish in the near term because of this.
For further details see:
Lynas: In The Right Place At The Wrong Time Due To Falling Rare Earth Oxide Prices