Lynas Warns of Production Shortfall as Power Disruptions Hit Kalgoorlie Facility

Lynas Rare Earths, the leading rare-earth producer outside China, announced that its Kalgoorlie Rare Earths Processing Facility in Western Australia is facing a potential production shortfall equivalent to about one month’s output for the current quarter. The company attributed the projected decline to an unusual surge in power supply disruptions throughout 2025, with November experiencing a particularly sharp rise in outages that severely affected the production of Mixed Rare Earth Carbonate (MREC).

The Kalgoorlie facility plays a key role in Lynas’ global supply chain, producing MREC that is then transported to the Lynas Malaysia advanced materials plant in Gebeng for further processing into finished rare-earth products. Due to the unstable power supply in Kalgoorlie, Lynas expects the production impact to extend beyond Australia and affect output at its Malaysian facility during the same quarter.

Lynas noted that the sporadic nature of the power failures has made it difficult to determine the exact volume of lost production. However, the company’s current estimate points to a significant reduction that could tighten rare-earth supply at a time when global demand continues to rise, especially across renewable energy, electric vehicles, and high-tech manufacturing sectors.

In response to the escalating disruptions, Lynas is urgently evaluating off-grid power solutions to ensure more reliable energy supply for its Kalgoorlie operations. The company is also collaborating closely with the Western Australian Government and state-owned electricity provider Western Power in an effort to stabilize the region’s power infrastructure and mitigate further losses.

Despite the setbacks, Lynas remains confident that it can recover the lost production within the financial year, provided it can successfully implement a short-term alternative power generation system. The company emphasized that securing a stable power source is essential to maintaining its position in the global rare-earth supply chain and supporting industries that rely heavily on these critical minerals.