Pentagon inks $96M deal with Lynas to secure EV magnet supply
The U.S. Department of Defense signed a $96 million binding letter of intent with Australian firm Lynas Rare Earths on March 16, 2026, to secure NdPr oxide — a critical magnet material for EVs and defense systems. China controls ~90% of global separated rare-earth oxide capacity. Lynas’ Gebeng, Malaysia plant — operational since 2012 — produced 3,233 metric tons of rare-earth oxides in Q1 2026 and began samarium oxide production one month ahead of schedule in March 2026. The deal enforces a $110/kg price floor, matching identical floors in Pentagon-MP Materials and Japan Australia Rare Earths agreements. Lynas also partnered with Texas-based Noveon Magnetics — the only U.S. sintered magnet maker — in October 2025. By 2018, Lynas’ Malaysia site had accumulated 451,564 metric tons of thorium-bearing residue.