The US government has pumped more money into Australia’s critical minerals industry under an agreement to fully fund Lynas’ plans to build a rare earths refinery in the southern states of the US.

Lynas said it had signed “a follow-on contract” for about $US120 million ($173 million) with the US Department of Defence (DoD) to establish the refinery, which will produce separated heavy rare earths like terbium and dysprosium.