Sydney, October 29th (Argus) - Australian rare earth producer Lynas Rare Earths has announced that it will build a heavy rare earth separation plant with an annual processing capacity of 5,000 tons at its existing production base in Malaysia in stages, in order to promote the diversification of the global mineral supply chain.
The company stated that it plans to start producing samarium at its Malaysian factory from April 2026. Subsequently, over the next two years, it will gradually expand the product range and add the production of heavy rare earth elements such as gadolinium, dysprosium, terbium, yttrium and lutetium. The new plant will focus on the production of separated yttrium and samarium.
It is noted that these two elements have wide industrial applications. The company plans to allocate 44% of the total capacity of the expanded Malaysian factory for the production of these two products. The company's CEO Amanda Lacaze said that Lynas will prioritize targeting more attractive price segments, such as the electronics industry. She also mentioned that the company will sell heavy rare earth products through long-term supply agreements with price protection mechanisms (price floor) to ensure stable revenue.
The total investment for this project is 180 million Australian dollars (approximately 119 million US dollars). The company will raise funds itself, with the source being part of the 750 million Australian dollars financing it completed recently. It is worth noting that this expansion plan is only a few months after Lynas became the first company to achieve mass production of heavy rare earth separation overseas (not in China).
In May and June this year, the company successfully produced separated dysprosium and terbium using the newly built annual separation production line with a capacity of 1,500 tons. In addition, the demand from the Chinese market may also bring more opportunities for Lynas. In April this year, the Chinese government announced export controls on the six heavy rare earth elements that the company plans to produce at the new plant. It is expected to further increase the demand for non-Chinese-produced heavy rare earths in the international market.
Lynas' expansion plan is not limited to Malaysia. The company is also building a new factory in Texas, USA, with an annual production capacity of 2,500-3,000 tons of heavy rare earths and 5,000 tons of light rare earths. This project has received support from the US government and is an important step in its global layout.
