Australia’s Lynas Rare Earths on Monday reported a 14.8% rise in second-quarter revenue from growing demand for specialized metals used in components of electric vehicles amid a global push toward green energy and decarbonization.
Demand for neodymium and praseodymium (NdPr), among the major minerals that Lynas mines and used to make magnets that power electric motors, has continued to grow as countries push to reduce carbon emissions to combat climate change.
Lynas said it continues to receive enquiries from potential new customers – mainly auto-part makers and new magnet manufacturing projects outside of China.
The world’s largest producer of rare earths outside China said revenue rose to A$232.7 million ($165.15 million) in the three months to Dec. 31, compared with A$202.7 million a year ago.
The company also said that prices for rare earths stabilized during the quarter and that future pricing trends will depend mainly on the economic recovery in China.
Lynas raked in an average selling price of A$62.5 per kilogram (kg) for its product range, compared with A$54 per kg last year.
Quarterly output of NdPr came in at 1,508 rare earth oxide tonnes (REOt) compared with 1,359 REOt a year earlier. The miner’s production and revenue also improved sequentially from the last quarter following the easing of water supply disruption at its plant in Malaysia.
($1 = 1.4090 Australian dollars)
(By Himanshi Akhand and Riya Sharma; Editing by Mark Porter and Deepa Babington)