A small toy figure and mineral imitation are seen in front of the Lynas Rare Earths logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration

(Reuters) -Australia's Lynas Rare Earths has partnered with U.S.-based manufacturer Noveon Magnetics to supply rare earth permanent magnets to defence and commercial sectors in the U.S., the two companies said on Wednesday.

The deal includes provision of both light and heavy rare earth materials and the production and supply of finished magnets to end-users across defense, automotive and industrial sectors.

"This partnership delivers what the market and the U.S. government need most: capacity, certainty and speed," Noveon CEO Scott Dunn said in a joint statement, adding that the companies plan to finalise a definitive agreement and work closely with the U.S. government and customers.

The companies did not divulge any financial details of the deal.

Washington has been pushing to secure critical minerals and reduce reliance on China, which produces around 90% of the world's rare earths magnets.

Lynas is the world's largest rare earth producer outside China and CEO Amanda Lacaze said the deal will provide U.S. manufacturers with a "secure and traceable" magnet supply chain.

(Reporting by Kumar Tanishk in Bengaluru; Editing by Janane Venkatraman and Rashmi Aich)