Pentagon awards $30.4M investment for Lynas' Texas rare earth separation plant

The U.S. Defense Department said Feb. 1 that it awarded a $30.4 million investment under the Defense Production Act to Lynas Rare Earths Ltd. to build a light rare earth elements separation plant in Hondo, Texas, according to a department release.

The investment followed an earlier announcement by the Australian rare earths producer that its Lynas USA LLC unit agreed to collaborate with the Pentagon for the construction of the plant.

Upon the successful completion of the project, Lynas will produce about 25% of the world's supply of rare earth element oxides. The award is in line with the U.S. government's strategy of ensuring secure and reliable supplies of critical minerals.