Lynas leads way with Australia’s first rare earths processing plant

Australia’s first rare earths processing plant has officially commenced operations with the $800 million Kalgoorlie facility expected to strengthen the nation’s place in the global critical minerals supply chain.

November 18, 2024 David Carroll

Image: Lynas Rare Earths

Western Australian-headquartered mining company Lynas Rare Earths has officially begun processing rare earth concentrate essential for clean energy technologies such as batteries, electric vehicles, and solar panels at its newly opened facility in Kalgoorlie. The $800 million (USD 516.5 million) plant is the first rare earths processing facility in Australia, and the largest outside of China.

Federal Resources Minister Madeleine King said the new “state-of-the-art” facility is an important step for Australia’s determination to diversify its supplies away from China, which currently controls most rare earth manufacturing.

“This opening is a big deal for Kalgoorlie, a huge deal for Western Australia and a massive step for Australia,” she said.

Critical minerals and rare earths elements are used for clean energy technologies such as solar panels, electric vehicles, and wind turbines, as well as advanced electronics and defence applications.

Australia is already a major exporter of rare earth and critical minerals but China currently controls the refined or processed market.

“Processing more of our critical minerals and rare earths here in this country is a big part of the Albanese Government’s plans for building Australia’s future,” King said.

“Projects like the Lynas Rare Earths Processing Facility will deliver direct economic benefits to Australia while strengthening our sovereign capability.”

Lynas’ Kalgoolie facility has been designed to process rare earth concentrate sourced from the company’s nearby Mt Weld mine into a carbonate. The carbonate will then be shipped to the company’s Malaysian facility for separation into individual products.

The facility cements Lynas’ place in the global rare earths supply chain but the project has not been without issues. It has come in at about $200 million over budget and has also experienced supply problems regarding sulfuric acid, a necessary ingredient for rare earth processing.

Despite those issues, Lynas Chief Executive Officer and Managing Director Amanda Lacaze said the facility is now fully commissioned and producing.

“This was an ambitious project, which established downstream rare earths processing in Australia for the first time,” she said.

“To construct, commission and bring into production a facility of this scale in just over two-and-a-half years is truly remarkable.”

Rebecca Tomkinson, chief executive officer of Western Australia’s Chamber of Minerals and Energy, said the plant represents a significant step along the processing and value-adding chain for the state’s resources sector.

“The minerals mined and processed by Lynas Rare Earths are essential for a wide range of modern technology, including mobile phones, medical devices, wind turbines, and electric vehicles,” she said.

“The cracking and leaching operation will also support hundreds of local jobs in the Goldfields-Esperance region and inject hundreds of millions of dollars into the local economy.”

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