Lynas produces terbium oxide at Malaysian plant

Lynas Rare Earths

Lynas expands rare earth production capabilities

Australian rare earths producer Lynas Rare Earths has achieved a major milestone by producing terbium oxide at its Malaysian facility. The product was manufactured using the plant’s 1,500 t/yr heavy rare earth separation circuits, commissioned earlier this year. The same circuits previously delivered separated dysprosium in May, making Lynas the first producer of separated heavy rare earths outside China.

This breakthrough positions Lynas as a critical supplier in global rare earth markets. The company plans to broaden its portfolio to include dysprosium, terbium, holmium concentrate, and unseparated samarium/europium/gadolinium, alongside mixed heavy rare earth products. The expansion comes amid rising supply chain concerns, as US and European automakers have warned that Chinese export restrictions could disrupt production lines.

Strategic feedstock and future US capacity

Lynas sources feedstock for its Malaysian plant from the Mount Weld mine and Kalgoorlie processing plant in Western Australia. However, it is also exploring new supply routes, signing an agreement in May with Malaysia’s Menteri Besar Investment Agency to purchase mixed rare earth carbonates from developing ionic clay deposits.

In parallel, Lynas is constructing a rare earth production plant in the US with similar capabilities to its Malaysian site. Once operational, the facility is expected to produce 2,500–3,000 t/yr of heavy rare earths and 5,000 t/yr of light rare earths. The project received funding through a 2019 US presidential directive under the Defence Production Act, highlighting the material’s importance to national security and industrial resilience.

The Metalnomist Commentary

Lynas’ production of terbium oxide is a strategic leap for non-Chinese supply chains. By expanding heavy rare earth output in Malaysia and developing US-based capacity, the company is strengthening Western resilience in critical minerals. These moves directly address growing concerns over Chinese export controls and highlight Lynas’ role as a pivotal global supplier.