Lynas, Molycorp Ramping Up Output, but Difficulties Remain

Reuters reported that rare earths producers Lynas Corporation Ltd. (ASX:LYC) and Molycorp Inc. (NYSE:MCP) are both increasing output at their plants. However, the path to full production has not been smooth for either company.

As quoted in the market news:

Both are now on the cusp of achieving steady output for the metals used in smart phones, cars and missiles.

But their ramp-ups are well behind target, beset by the challenges of running environmentally safe, complex chemical plants and after prices of the products have slumped as China’s export curbs scared high-tech manufacturers in Japan, Europe and the United States into finding ways to reduce their use.

That has squeezed Lynas’ and Molycorp’s funding and their share prices have tumbled.

Click here to read the full Reuters report.