Singapore, July 7th (Argus) - Australian comprehensive rare earth operator Lynas and South Korean magnet manufacturer JS Link announced today that they have upgraded their existing memorandum of understanding and agreed to establish a rare earth sintered permanent magnet factory in Kuantan, Malaysia.
Lynas will acquire 4.6% of JS Link's equity at a price of approximately 50 million Australian dollars (34.7 million US dollars), and JS Link will use this fund to build a 3,000-ton-per-year neodymium iron boron magnet factory in Malaysia, Lynas said. JS Link stated that Lynas will make the share payment in convertible Korean won by July 15th and will receive a 10% discount on JS Link's basic share price.
Lynas will supply 1,500 tons per year of rare earth materials to JS Link's magnet factory in Yesan, South Korea and the planned factory in Malaysia under a exclusive supply agreement until January 1, 2038.
The company said that this agreement will help Lynas establish a metal and magnet supply chain outside China to support the manufacturing of automobiles, wind turbines and electronic products in South Korea, Malaysia and other markets.
The two companies initially announced their intention to build a magnet factory in Malaysia in July 2025.
Lynas recently extended the license of its rare earth smelting plant in Malaysia until 2036. The company produces neodymium, praseodymium, samarium, dysprosium and terbium.
The company plans to build a 5,000-ton-per-year heavy rare earth separation plant at the base by 2028 to produce oxide dysprosium and oxide terbium.
It cooperated with South Korean LS Eco Energy Company to establish a rare earth metal factory in Vietnam, focusing on the production of samarium for the samarium-cobalt magnet industry.
