Lindian Partners with Carester for 8,000 TPA Rare Earth Facility

Lindian Resources Limited has entered into a strategic partnership with rare earth processing specialist Carester SAS to advance the development of an oxide separation facility in Stepnogorsk, Kazakhstan. Under the agreement, the companies will work with Tetra Tech Coffey to complete a Definitive Feasibility Study (DFS) for an 8,000-tonne-per-year rare earth oxide (REO) solvent extraction (SX) and separation facility, with completion targeted for the fourth quarter of 2026.

Alongside the technology and engineering services agreement, Lindian and Carester have signed a binding long-term offtake agreement covering up to 20 years. The initial term will run for 10 years, followed by two optional five-year extensions. Carester will purchase 70% of Lindian’s Mixed Heavy Rare Earths (SEGH) production and will hold a right of first refusal over 70% of Mixed Heavy Rare Earths Carbonate (MHREC) volumes from the SARECO facility.

The heavy rare earth products will supply Carester’s Caremag refinery in Lacq, France. The refinery is being developed through a joint venture involving Carester, Japan Organization for Metals and Energy Security (JOGMEC), and Iwatani Corporation. The project has received significant financial backing from French and Japanese governments.

MHREC will be produced through Lindian’s SARECO hydrometallurgical facility in Kazakhstan, while SEGH will be produced alongside separated neodymium (Nd) and praseodymium (Pr) oxides. The proposed SX facility will allow Lindian to move further downstream, expanding its business from concentrate and mixed carbonate production toward higher-value, magnet-grade separated rare earth products.

The project is expected to provide exposure to several revenue streams, including monazite concentrate, MREC, SEGH and separated rare earth oxides. High-value products such as neodymium-praseodymium, dysprosium (Dy), terbium (Tb) and yttrium (Y) could strengthen the company's earnings potential.

Market forecasts indicate substantial price differences between Western expectations and current spot prices. Western forecasts place Dy, Tb and Y at approximately US$541/kg, US$1,988/kg and US$383/kg, respectively, compared with current spot prices of about US$249/kg, US$1,127/kg and US$30/kg.

The Stepnogorsk industrial complex could also offer cost advantages because it already has power, gas, water, rail, reagent infrastructure, skilled workers and local sulfuric acid supplies. Existing warehouses, buildings and land acquired through the SARECO transaction could further reduce development requirements.

Lindian plans to fund the SX facility internally using cash flows from its Kangankunde and SARECO operations, existing cash and available financing facilities. The company is also evaluating additional rare earth feedstocks in Kazakhstan, creating opportunities to increase utilization and potentially expand the facility.

Lindian Executive Chairman Robert Martin said the partnership represents an important step toward moving further downstream and capturing greater value from the company’s rare earth production. Carester President Frédéric Carencotte said the collaboration would strengthen feedstock security for the French facility and support production of dysprosium and terbium oxides used in high-performance permanent magnets.

Kazakhstan’s Ministry of Industry and Construction also expressed support, highlighting the project’s potential to strengthen the country’s role in the global rare earth supply chain and support the production of permanent magnet materials used in artificial intelligence, robotics, electric mobility and renewable energy.

Product Impact & Chemical Commodity Price Impact

The partnership could significantly strengthen Lindian’s rare earth product portfolio by enabling a transition from concentrates and mixed carbonates toward higher-value separated NdPr, dysprosium, terbium and yttrium oxides. Secured offtake with Carester should improve market access and revenue visibility while supporting downstream integration. For chemical commodities tracked by ChemAnalyst, the immediate pricing impact is likely limited because the facility remains under development. However, greater future availability of separated rare earth oxides could ease supply constraints and moderate prices if production ramps successfully. Conversely, stronger demand from permanent magnets, electric vehicles, robotics and renewable energy could sustain upward price pressure on dysprosium, terbium and NdPr.