Australian rare earths company Lynas has announced a partnership with South Korea's JS Link to build a permanent magnet factory in eastern Malaysia. The facility, located near Lynas's existing site in Kuantan, is expected to produce 3,000 tonnes of magnets annually using the rare earth element neodymium, along with iron and boron.
Investment and Production Details
Lynas will invest approximately US$35 million in the new plant. The magnets produced will be intended for supply to automotive, wind energy, and electronics manufacturing supply chains in South Korea, Malaysia, and other key markets. The plant is projected to create around 400 jobs.
Strategic Supply Agreement
Under the agreement, Lynas will supply rare earth materials to the new Malaysian plant as well as JS Link's facility in Yesan, South Korea. This exclusive commercial arrangement is set to run until January 2038.
Significance for Rare Earth Market
Lynas's Gebeng facility, operational since 2012, currently supplies materials used in a range of products including electric vehicles, mobile phones, and missiles. It holds around 10 percent of the world's rare-earth market, with the remaining 90 percent produced in China.
Environmental and Ethical Concerns
The development of rare earth production in Malaysia has sparked environmental and ethical concerns. On the same day as the Lynas-JS Link announcement, a group of 20 NGOs protested outside the Malaysian parliament, calling for stronger oversight of the rare earth supply chain. They urged Malaysia to demonstrate leadership by enhancing transparency, accountability, and human rights safeguards in the sector.
Broader Industry Context
Malaysia's rare earth sector is gaining attention from other global firms. French company Carester recently announced plans with local firm Malaco Mining to build a rare earths separation plant in the northern Perak state. This joint venture is expected to process around 13,000 tonnes annually.
