Lynas expanding to 'full suite' production of heavy rare earths

Rare earth processing company Lynas Rare Earths is planning to expand its production in Malaysia with the extraction of three "heavy rare earth oxides", which are now being highly sought by industries, after China restricted its rare earth elements (REE) exports last year.

The three elements - dysprosium, terbium, and samarium - are used in high-performance magnets for advanced industries such as electronics and aerospace, according to a AFP report quoting Lynas officials.

Lynas' facility in Gebeng is not only capable of producing light rare earth elements but is also the only significant producer of heavy rare earth elements outside China, and therefore the only producer not subject to China’s export controls on critical minerals.

Lynas chief operating officer Pol Le Roux reportedly said the company plans to increase its collaboration with magnet makers and, as a first step, demonstrate its ability to extract the elements.

To do this, Lynas has begun detailed engineering on a full heavy rare earth elements separation, which Le Roux said would give the company the "capability to extract any rare earths demanded by the market."

"This is ongoing, and we will have a full suite of extraction on this site," he told the international media agency during a recent interview at Lynas’ facility in Gebeng, Pahang.

The official indicated that the full capability is expected to be ready by late 2027.

According to Le Roux, the Australian mining firm has demonstrated that it could extract heavy rare earths since last year, with dysprosium in May, terbium in June, and samarium in March.

Rare earth elements refer to a group of 17 metals and their oxides used in various high-tech applications. They are of strategic importance in the ongoing trade war between the US and China.

Calls for restrictions on Lynas after US deal

Last month, two pro-Palestine advocates called for Malaysia to impose restrictions on the export of rare earth materials processed by Lynas.

This came after the company signed a binding letter of intent with the US Department of Defense, to finalise a four-year agreement to supply the US defence sector with rare earth minerals.

Boycott Divestment & Sanctions Malaysia (BDS) chairperson Nazari Ismail argued that the business deal also challenges Malaysia's spirit of non-aligned foreign policy.

He added that Putrajaya should be concerned about the Lynas deal, given the US' role in the deadly bomb strike on two schools in Iran, which killed over 100 schoolchildren.

Nazari said that since Lynas holds an operating licence issued by Putrajaya, the terms of that licence should be revisited to include restrictions on the end buyers of the processed materials.

Former PKR vice-president and fellow pro-Palestine activist Tian Chua echoed Nazari's sentiments.

READ MORE: MP SPEAKS | Lynas' 10-year licence renewal: Addressing four key areas of concern

He acknowledged that while the law may not provide a clear legal mechanism to prevent Lynas - a private, foreign-listed company - from entering into a commercial agreement with the US defence establishment, Malaysia is not absolved of responsibility.

Malaysian Consultative Council of Islamic Organisations (Mapim) president Azmi Abdul Hamid also voiced similar concerns and urged Putrajaya to immediately audit Lynas’ operations and export channels, suspend any supplies tied to military end use, and impose strict controls on strategic mineral exports.

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