Molycorp sells most of its lanthanum to W.R. Grace for use in the chemical catalyst and petroleum industry, not to the DoD. Molycorp recently disclosed to shareholders that much of its cerium production cannot be sold, indicating that materials like cerium are in oversupply.
The Good Stuff Goes to China: The remaining 17%* of 'high value' rare earths that Molycorp produces from their Mountain Pass deposit appears to be sent to China for refining and value adding.Adjusting for the production and transfer of high value 'technology resources' -- nothing has changed Current total annualized production for Lynas (OTCQX:LYSDY) and Molycorp combined is less than 18,000* tons per year. Of that production, over 80%* is cerium and lanthanum, non-critical materials that are already in oversupply, resulting in roughly 3,600* tons per year in high value 'technology resources' at current run rates. Of that, Molycorp will send about 3,000* tons per year to China for further processing into value added metals, magnets and components