Highlights

  • Kalgoorlie facility experienced increased outages causing notable MREC production losses this quarter.
  • Delayed feedstock will not reach Malaysia in time due to maintenance shutdown.
  • Company working with authorities and assessing off-grid solutions to stabilise supply.

Lynas Rare Earths Ltd (ASX:LYC) has reported significant operational disruption at its Kalgoorlie Rare Earths Processing Facility due to recurring power supply issues. The site receives power through Western Power’s Eastern Goldfields Load Permissive Scheme (ELPS), which the company joined in 2021 based on publicly outlined expectations of access to cleaner power compared with diesel generation. The indicative reliability levels at the time were aligned with the operational needs of the Kalgoorlie plant.

Throughout 2025, the facility has experienced a rise in power interruptions. According to the company, the frequency and duration of outages in November have contributed to substantial losses in Mixed Rare Earth Carbonate (MREC) production. This has created constraints on the volume of material available for further processing within the current quarter.

Downstream Effects on Malaysian Processing Facility

Lynas stated that while recovery efforts are underway at Kalgoorlie, the disrupted output will not reach its Malaysian downstream processing plant in time to be converted into finished goods this quarter. The shortfall cannot be covered by increased production in Malaysia because the kilns there are undergoing scheduled major maintenance.

The company indicated that although the exact shortfall cannot be quantified due to ongoing power unpredictability, it estimates the impact may be comparable to approximately one month of production during the quarter. Despite this, Lynas expects to produce adequate finished product volumes to meet key customer needs.

Coordination With Authorities and Exploration of Alternatives

The company is engaging with the Western Australian Government and Western Power to determine the causes of the recent power outages and review potential measures to enhance supply reliability. These discussions are ongoing and being addressed urgently. However, Lynas noted that even under favourable conditions, any improvements arising from this process will not affect production forecasts for the current quarter.

In parallel, Lynas is assessing short-term off-grid generation options to supplement its power supply. Based on current planning, the company expects that implementing such an option could enable recovery of lost production within the financial year.

Share Price Snapshot

LYC was trading 0.46% lower at AUD 14.970 per share as of 25 November 2025.