Lynas Rare Earths has reported a slide in half-year profits on lower market prices for the elements used in industrial magnets, electric cars and defence technology.

The biggest producer of rare earths outside China announced on Monday a 74 per cent slide in net profit to $39.5 million for the six months to December 31 amid uncertainty for Western Australian jobs and refineries.

Lynas was the latest to reveal a profit slide as prices for critical minerals and rare earths slump with China still in control of supply.

Earnings before interest, taxes, depreciation, and amortisation fell more than two-thirds (67 per cent) to $62.6 million and revenue from ordinary activities fell 37 per cent to $234.8 million.

Lynas chief executive Amanda Lacaze said the company ended the period with a strong cash balance of $686.1 million after investing $347 million in the Kalgoorlie and Mt Weld expansion projects.

“The 2024 financial year is a transitional year for Lynas … we continue to see strong customer demand for Lynas’ products,” she said.

Australian credentials are helping Lynas to build allies in the rare earths market as the United States in particular seeks a reliable source for industrial, automotive and defence supply chains.

After costly delays, the company said construction in Kalgoorlie was largely completed and the first feed of material from Mt Weld was introduced into the new Kalgoorlie Rare Earths Processing Facility in December

Lynas said the Mt Weld expansion project “remains on track” and process plant works approval was received from the state government this month, with drilling results to update the size of resource due later in 2024.

This post was originally published on Michael West.