Rhodia Electronics & Catalysis ensures supplies through link with Lynas
Rhodia Electronics and Catalysis has signed a letter of intent with Australian company Lynas to create a rare earths alliance. Under the terms of their agreement, which could be formalized during 2Q 2006, Lynas will provide Rhodia with a significant proportion of the rare earths it needs (33%). Lynas will manufacture these products at a concentrated minerals factory it is planning to open in Shandong, China, in 2007. This unit will receive its feedstock from the mine Lynas recently opened in Mount Weld, Australia. According to Lynas, the Mount Weld deposit is the largest in the world and the company expects to be able to extract 10,500 tonnes/y rare earth oxides. The contract with Rhodia will account for 40% of the deposit's business in terms of value. Lynas will have access to Rhodia's factory in Liyang, where it will be able to use separation technology for certain rare earths. Lynas will market the products obtained using its own technology. The company has developed its own cerium extraction process. Rhodia and Lynas will not be in competition as Lynas is a commodity supplier whereas Rhodia concentrates on products with high added value.