“Market demand for heavy rare earths is high and Lynas can be selective in where, and at what price, we sell heavy rare earth oxides,” said Lynas chief executive officer Amanda Lacaze.
Rare earths have taken centre stage in trade tensions after China, which has long dominated the supply of the critical materials, tightened export controls and their processing technology.
Lynas’ site in Malaysia is now the only non-Chinese commercial producer of the materials widely-used in electric vehicles and advanced technology such as guided missiles. Malaysia, meanwhile, bans exports of raw rare earth and only allows value-added processed products to be shipped out.
The timeline for construction of the new facility is subject to regulatory approvals, while the company is in talks with “a range of offtake partners” for broadened product lines.
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The facility is expected to produce samarium by April 2026 before progressively adding capacity for other materials, including gadolinium used in medical imaging and dysprosium as permanent magnets in electric vehicles and wind turbines.
“Lynas will prioritise market segments where pricing is more favourable, such as the electronics industry,” Lacaze added.
