Business

Lynas plans major expansion of rare earth output in Malaysia to strengthen global supply role

Australian miner Lynas says it will expand heavy rare earth production at its Malaysian facility and deepen ties with magnet manufacturers as global demand rises

Updated 4 months ago · Published on 10 Apr 2026 9:47AM

Lynas plans major expansion of rare earth output in Malaysia to strengthen global supply role
China, in parallel, tightens export controls - April 10, 2026

AUSTRALIAN mining company Lynas Rare Earths says it plans to expand its portfolio of rare earth elements produced in Malaysia as it seeks to strengthen its position as a leading alternative supplier to China in the global critical minerals market.

The company, which operates the largest commercial rare earth processing facility outside China, is also increasing collaboration with manufacturers of high-performance magnets used in advanced sectors including electronics, electric vehicles and aerospace.

AFP, on Friday, cited Lynas chief operating officer Pol Le Roux saying the company’s initial focus had been proving its capability to extract heavy rare earth elements at its Malaysian facility in Gebeng, Pahang.

“The first step was to demonstrate that we are able to extract heavy rares (earths),” he said in an interview at the site.

“We demonstrated that with dysprosium in May last year, terbium in June and samarium last month,” he said.

These heavy rare earth oxides have become increasingly important following restrictions on exports imposed by Beijing in 2025, which tightened global supply chains for critical minerals.

Lynas announced in March that it had begun producing samarium oxide, a material used in the manufacture of high-performance magnets.

The Gebeng plant, which has been operating since 2012, supplies materials used in a wide range of technologies, including electric vehicles, mobile phones and defence systems such as missile technology.

Le Roux said the company had now moved into the next phase of development, with plans to broaden its extraction capabilities.

“We have also started detailed engineering of a full heavy rare (earths) separation... that will provide us the capability to extract any rare earths demanded by the market,” he said.

“This is ongoing, and we will have a full suite of extraction on this site by late next year,” he added.

The company currently accounts for about 10 per cent of global rare earth supply, while China dominates the remaining share.

The three oxides already produced in Malaysia are used in high-performance magnets, medical applications such as pain treatment, consumer electronics including headphones, electric vehicles, wind turbines, solid-state lasers and defence equipment.

Lynas chief executive Amanda Lacaze said the company is also working closely with magnet manufacturers to bridge the gap between raw material processing and downstream production.

“We won’t just say that we are going to wake up tomorrow and be a magnet maker,” she said.

“We will do that in partnership with firms that have demonstrated expertise in these areas.”

Lynas recently secured a 10-year renewal of its operating licence in Malaysia under stricter environmental conditions imposed by the government.

Malaysia has now become the largest producer of separated rare earths outside China, underscoring its growing role in the global critical minerals supply chain. - April 10, 2026

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