Lynas Heavy Rare Earths Production Breaks China's Market Monopoly

Lynas Rare Earths

Lynas heavy rare earths production achieved a historic milestone by becoming the first non-Chinese producer of separated dysprosium. The Australian mineral company's Lynas heavy rare earths facility in Malaysia successfully produced separated dysprosium, marking a significant breakthrough in global supply chain diversification for critical minerals essential to advanced manufacturing and defense applications.

Malaysian Plant Establishes Alternative Supply Chain

Lynas heavy rare earths processing capabilities expanded significantly during the first quarter of 2025. The company constructed dysprosium and terbium processing circuits at its Malaysian facility, with capacity to separate up to 1,500 tonnes per year of heavy rare earths. These new circuits position Lynas to challenge China's dominance in the separated heavy rare earths market.

Meanwhile, Lynas plans to commence separated terbium production next month at the same facility. The processing circuits will eventually enable production of separated dysprosium, terbium, and holmium concentrate. Additionally, the facility will produce unseparated samarium/europium/gadolinium and unseparated mixed heavy rare earths, creating a comprehensive product portfolio.

Strategic Timing Amid Chinese Export Restrictions

However, the breakthrough comes at a critical juncture for global rare earths markets. Chinese suppliers recently limited offers for rare earth minerals, including dysprosium and terbium, following government export control tightening. This timing underscores the strategic importance of establishing alternative supply sources outside China's control.

Therefore, Lynas' production achievement addresses growing concerns about supply chain vulnerability in critical minerals. The company's Q1 2025 total rare earth oxide production reached 1,911 tonnes, including 1,509 tonnes of NdPr oxide. Production declined 46% year-on-year due to improvement and maintenance works across Malaysian and Western Australian operations.

US Partnership Strengthens Supply Chain Resilience

Furthermore, Lynas continues developing another rare earths processing plant in Texas with US government support. The American facility will produce both separated heavy and light rare earths, further reducing Western dependence on Chinese supplies. This dual-facility strategy creates redundancy and geographic diversification for critical mineral processing.

As a result, Lynas positions itself as a cornerstone of Western rare earths supply chain security. The company's expansion into heavy rare earths processing represents a strategic shift from its traditional focus on light rare earths production, addressing military and high-tech manufacturing requirements.

The Metalnomist Commentary

Lynas' achievement in producing separated heavy rare earths outside China represents a watershed moment for global supply chain resilience in critical minerals. The timing coincides perfectly with Chinese export restrictions, demonstrating the urgent need for alternative suppliers in materials essential to clean energy, defense, and advanced technology sectors.

Lynas heavy rare earth plant anchors non-China supply shift

Lynas

Lynas heavy rare earth plant expansion marks a major step in diversifying global magnet material supply chains. The new Lynas heavy rare earth plant at Lynas Malaysia will raise separated output in several phases. As a result, the Lynas heavy rare earth plant will strengthen non-China options for samarium, yttrium, dysprosium and terbium.

Lynas heavy rare earth plant targets samarium and yttrium demand

Lynas will build a 5,000 t/yr heavy rare earth separation plant at its Lynas Malaysia complex. The company plans phased commissioning, with initial samarium output targeted from April 2026. Over the following two years, Lynas will add gadolinium, dysprosium, terbium, yttrium and lutetium. This phased ramp-up will match downstream qualification cycles and market absorption.

The Lynas heavy rare earth plant will focus capacity on separated yttrium and samarium. Around 44pc of the expanded plant output will be dedicated to these two elements. These materials serve multiple industrial uses, from electronics to specialised ceramics and lighting. Lynas will prioritise higher value segments, especially electronics, where pricing remains more attractive. The company plans to sell heavy rare earths under offtake contracts with price floors. That structure should reduce downside price risk and support investment returns.

Lynas will self-fund the A$180mn project using part of its recent A$750mn capital raise. This funding structure avoids immediate dependence on external lenders. It also signals management confidence in future heavy rare earth margins. The Lynas heavy rare earth plant builds on recent milestones in Malaysia. Lynas became the first producer of separated heavy rare earths outside China this year. It started separated dysprosium production in May and terbium in June, using new 1,500 t/yr circuits.

China export controls lift strategic value of Lynas heavy rare earth plant

China imposed export controls in April on the six heavy rare earth elements Lynas plans to produce in Malaysia. These measures tighten available supply for many downstream users, especially in magnets and advanced electronics. Against that backdrop, the Lynas heavy rare earth plant gains significant strategic weight for governments and OEMs. Non-China sources of dysprosium and terbium are essential for resilient magnet supply chains.

Lynas is also extending its footprint beyond Malaysia. The company is developing a US heavy rare earth and light rare earth plant in Texas. Planned capacity is 2,500–3,000 t/yr of heavy rare earths and 5,000 t/yr of light rare earths. US government backing underlines the national security dimension of rare earth diversification. Combined, the Malaysian and Texas projects create a more integrated mine-to-separation network outside China. This network directly supports EV motors, wind turbines and defence applications.

The Metalnomist Commentary

Lynas is methodically positioning itself as the core heavy rare earth supplier outside China. The company links phased capacity, price-floor offtakes and geographic diversification into one strategy. For OEMs, the real question now is how fast they can re-qualify non-China material and lock in long-term supply before the next policy shock.

Lynas samarium oxide output marks another step in building separated heavy rare earth capacity

Lynas samarium oxide

outside China. Australian producer Lynas Rare Earths has achieved first production of samarium oxide at its Malaysian refinery, adding a third separated heavy rare earth material to its commercial product line.

The milestone expands Lynas’ separated heavy rare earth portfolio beyond terbium and dysprosium. The company said it is now the only commercial producer of separated samarium, terbium, and dysprosium outside China.

Lynas samarium oxide output is strategically important because heavy rare earth separation remains one of the most concentrated parts of the global critical minerals chain. China still dominates processing, refining, and separation capacity for many rare earth elements used in magnets, defense systems, electronics, and advanced manufacturing.

Heavy Rare Earth Expansion Moves Lynas Up the Value Chain

Lynas is using its Malaysian refinery to move beyond light rare earths and build a broader separated oxide platform. The company plans to add gadolinium, yttrium, and lutetium over the next two years.

The company may also expand into europium, holmium, ytterbium, and erbium if customer agreements justify the required investment. That approach shows how rare earth separation capacity is being shaped by offtake contracts, not only by resource availability.

Lynas samarium oxide output also improves its strategic value to customers seeking non-China supply. Samarium is used in high-performance magnet applications, including samarium-cobalt magnets, which retain magnetic strength under high temperatures and demanding operating conditions.

US and Japan Offtakes Support Rare Earth Supply Security

Lynas’ product expansion is backed by major offtake commitments from the US and Japan. The company recently signed a binding letter of intent with the US Department of Defence for a $96 million light and heavy rare earth oxide supply deal.

The company has also agreed to sell at least 50pc of its heavy rare earth output to Japan Australia Rare Earths until 2038. These agreements underline Japan’s and the US’ efforts to secure rare earth supply chains for defense, energy, electronics, and advanced industrial uses.

Pricing also supports Lynas’ expansion strategy. Japan Australia Rare Earths and the US Department of Defence have both agreed to buy Lynas’ neodymium-praseodymium oxide at a floor price of at least $110/kg. Lynas’ average realised rare earth sales price rose to A$68.40/kg in July-December 2025, from A$44.60/kg a year earlier.

Lynas produced 6,375t of rare earth oxide in July-December 2025, including 3,407t of neodymium-praseodymium oxide. Output rose by 19pc on the year despite a month of lost production caused by severe power shortages at its Western Australia operations.

The Metalnomist Commentary

Lynas samarium oxide output shows that rare earth security depends on separation capability, not just mining. The next competitive frontier will be reliable, contract-backed production of specific heavy rare earth oxides outside China.

Lynas Rare Earths Permit Extension Secures Malaysia Refinery Through 2036

Lynas Rare Earths

Lynas rare earths permit approval in Malaysia gives the Australian producer long-term operating certainty for one of the most important non-Chinese rare earth refining assets. Malaysia’s Department of Atomic Energy extended the company’s refinery operating permit for a decade to 2036, supporting continued light and heavy rare earth oxide production.

The Lynas rare earths permit extension strengthens confidence across the company’s supply chain. Lynas processes rare earth carbonates from Western Australia at its Malaysian plant, making the site a key link between Australian mining and downstream oxide production.

The decision comes as governments and manufacturers seek more secure rare earth supply outside China. For magnet makers, defense contractors, EV suppliers, and industrial technology companies, stable refining capacity is just as important as mine output.

Heavy Rare Earth Separation Becomes the Strategic Growth Area

Lynas expanded its Malaysian refinery in 2025 by building a 1,500 t/yr heavy rare earth separation circuit. The company began producing separated dysprosium and terbium at the site in May and June 2025, respectively.

This is strategically important because dysprosium and terbium are critical inputs for high-performance permanent magnets. These magnets support electric vehicles, wind turbines, robotics, aerospace systems, defense equipment, and advanced electronics.

The Lynas rare earths permit extension allows the company to continue scaling this capability. Lynas plans to build a 5,000 t/yr heavy rare earth separation plant at the Malaysian site in phases over the next two years, deepening its role in the global rare earth value chain.

Malaysian Expansion Supports Wider Rare Earth Product Diversification

Lynas increased saleable rare earth oxide output by 19pc year on year to 6,375t in July-December 2025. This production growth highlights the importance of the Malaysian refinery as demand for separated oxides continues to rise.

The company also plans to broaden its product line. Lynas aims to produce separated samarium from April 2026, before expanding into gadolinium, yttrium, and lutetium by 2028. These additions would give the refinery a wider specialty rare earth platform.

Lynas is also working to support Malaysia’s broader rare earth sector. Its cooperation with Menteri Besar, the investment agency for Kelantan state, signals that Malaysia wants to play a larger role in rare earth processing and industrial development.

The Metalnomist Commentary

The Lynas permit extension is more than a regulatory approval; it is a supply-chain stability event. Western rare earth strategies depend on long-life refining assets, and Malaysia is now positioned as a critical node in heavy rare earth separation.

Lynas Rare Earths expansion accelerates after $490mn capital raise

Lynas Rare Earths

Lynas Rare Earths expansion gathers pace after a $490mn capital raise to scale mining and processing outside China. Lynas Rare Earths expansion will strengthen heavy and light rare earth supply for magnet makers in allied markets.

Lynas completed an A$750mn equity raise at A$13.25/share, a 10% discount. The company will also offer retail holders up to A$75mn at the same price. Management directs proceeds to expand upstream feedstock, separation capacity, and downstream conversion.

Lynas produced separated dysprosium and terbium oxides in Malaysia in May and June. This milestone makes Lynas the first producer of separated heavy rare earths outside China. As a result, the company will broaden its heavy rare earth product line.

Lynas is building a diversified midstream footprint. It signed a non-binding pact with Korea’s JS Link to develop a 3,000 t/yr magnet materials plant in Malaysia. Meanwhile, it is developing a US-funded Texas facility for 2,500–3,000 t/yr heavy REE and 5,000 t/yr light REE processing.

Upstream feedstock and NdPr growth at Mount Weld

Lynas is improving access to secure feedstock. It agreed with Malaysia’s Kelantan state to support ionic clay developers and accelerate future sourcing. The company is ramping the Mount Weld expansion, adding 2,400 t/yr to NdPr oxide capacity. Therefore, Lynas will increase magnet-critical output as demand rises.

China’s recent controls tighten private processing of rare earths. This policy shift has lifted NdPr oxide prices. Consequently, Lynas’ expanded capacity and product slate should capture firmer pricing and premium, non-Chinese supply contracts.

Strategic positioning for magnet supply chains

Lynas Rare Earths expansion targets downstream integration and customer proximity. The Texas project under US backing advances allied supply resilience. The Malaysia heavy-oxide capability shortens lead times for high-coercivity magnet chemistries. In parallel, the JS Link partnership moves closer to end-use magnet manufacturing.

Investors will watch execution on capex, commissioning, and product qualification. However, Lynas’ sequencing across feedstock, separation, and conversion reduces single-point risk. The portfolio now spans heavy REEs, light REEs, and emerging magnet partnerships.

The Metalnomist Commentary

Lynas is converting first-mover advantages into a regionalized value chain. Expect multi-year offtakes to price security and origin premiums as HREE supply remains concentrated. Successful ramp-ups in Malaysia and Texas are the catalysts to watch.

Lynas Secures Malaysian Rare Earth Feedstock for Processing Plant

Lynas Rare Earths

Lynas Rare Earths has signed a groundbreaking Malaysian rare earth feedstock agreement with Kelantan state. The Australian producer partnered with Menteri Besar investment agency for ionic clay supplies. This strategic deal ensures Malaysian rare earth feedstock for Lynas's local processing operations.

Heavy Rare Earths Supply from Kelantan Deposits

The agreement covers mixed rare earth carbonates from Malaysia's ionic clay deposits. These deposits contain high concentrations of valuable heavy rare earths. Meanwhile, Lynas became the first non-Chinese separated heavy rare earths producer recently. The company now produces dysprosium and will add terbium production in June.

Both parties will collaborate on Malaysia's broader rare earth sector development. However, specific supply volumes remain undisclosed pending final negotiations. The feedstock delivery begins once Kelantan mining operations commence. Currently, Lynas sources carbonate from its Australian Mount Weld mine exclusively.

Strategic Shift in Southeast Asian Rare Earth Processing

This partnership transforms Malaysia's rare earth industry positioning significantly. Malaysia considered export bans to boost domestic processing capabilities last year. Therefore, this deal aligns with national downstream development objectives perfectly. Lynas gains critical supply chain diversification beyond Australian sources.

The Malaysian rare earth feedstock agreement strengthens regional processing independence from China. Furthermore, ionic clay deposits offer superior heavy rare earth concentrations. As a result, Lynas can expand specialty rare earth production capacity. This development positions Malaysia as a global rare earth processing hub.

The Metalnomist Commentary

Lynas's Malaysian feedstock agreement represents a masterful supply chain strategy combining local sourcing with established processing infrastructure. This partnership accelerates Malaysia's rare earth ambitions while giving Lynas competitive access to high-value heavy rare earth deposits. The deal exemplifies successful resource nationalism that benefits both foreign investors and host countries.

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.

Lynas to Begin Heavy Rare Earth Production in Malaysia by 2025

Lynas Rare Earths

Lynas Rare Earths, an Australia-listed mining company, is set to commence the production of two separated heavy rare earth (HRE) products at its Malaysian facility by 2025. This will involve the production of separated dysprosium and terbium at one of Lynas Malaysia's solvent extraction circuits. The facility is designed to separate up to 1,500 tons per year of a mixed heavy rare earth compound, which includes samarium, europium, gadolinium, holmium, dysprosium, and terbium (SEGH).

The HRE project has completed its initial engineering phase, and detailed engineering design is currently underway. Commissioning and ramp-up are expected by mid-2025. Post-separation, Lynas' HRE product range will expand to include five products: dysprosium, terbium, unseparated samarium/europium/gadolinium, holmium concentrate, and unseparated SEGH.

Dysprosium and terbium are critical for producing high-performance rare earth magnets, which are essential components in consumer electronics, electric vehicle engines, and other automotive applications.

Lynas is also advancing pre-construction activities for its planned rare earth processing facility in the United States. Both its Malaysian and US facilities are designed to accept third-party feedstocks once they commence operations.

According to Amanda Lacaze, Lynas' Chief Executive Officer and Managing Director, the production of heavy rare earths will help accelerate the company's commitment to processing all elements sourced from the firm's Mount Weld ore site in Australia.

Supply Chain Context

In response to the rapid evolution of the clean energy sector and the need to reduce dependence on Chinese supplies, many national governments are working to build or diversify more resilient and sustainable rare earth supply chains. China, the world's largest supplier of medium and heavy rare earths, has been enforcing stricter export control policies for rare earth extraction and separation technology.

Progress on rare earth projects outside China has been limited, especially in the HRE market, due to constraints such as exploration techniques, ore resource shortages, production costs, capital pressures, and environmental considerations. US-based rare earth producer MP Materials aims to develop an HRE production facility within the next few years. The company began producing neodymium-praseodymium oxide in the third quarter of last year and plans to commence commercial production of finished magnets by late 2025.

Australian mineral producer Iluka Resources plans to achieve an output capacity of up to 23,000 tons per year of rare earth oxide, including 5,500 tons per year of neodymium-praseodymium oxide and 725 tons per year of dysprosium and terbium oxide from its refinery in Australia.

Heavy rare earth free NdFeB alloy from VAC targets China-independent magnet supply

Vacuumschmelze

Heavy rare earth free NdFeB alloy from VAC marks a major shift in Western magnet strategy. German producer Vacuumschmelze has launched VACODYM 902 TP, a neodymium-iron-boron grade that avoids dysprosium and terbium. As a result, the heavy rare earth free NdFeB alloy offers high performance while reducing exposure to increasingly volatile heavy rare earth markets.

VACODYM 902 TP extends VAC’s family of reduced-HRE NdFeB grades. The new heavy rare earth free NdFeB alloy achieves a remanence of at least 1.40 Tesla and a coercivity of at least 1,190 kA/m. These metrics place it firmly in the high-performance segment for traction motors and industrial drives. Therefore, OEMs gain an alternative to conventional NdFeB magnets that rely on dysprosium and terbium to maintain coercivity at elevated temperatures.

Western buyers have sought heavy rare earth free NdFeB alloy solutions for several years. Dysprosium and terbium production still concentrates overwhelmingly in China, which creates structural supply risk. Meanwhile, policymakers and OEMs push for magnet designs that reduce heavy rare earth intensity without sacrificing performance. VAC’s new grade directly responds to this pressure and is fully produced within Western supply chains.

Export controls and price spikes intensify heavy rare earth risk

China’s export controls on certain rare earths have tightened heavy rare earth availability for Atlantic buyers since April. Spot prices for dysprosium and terbium outside China surged immediately after the controls. European terbium oxide prices rose by 268pc between 1 April and early September, reaching $3,300-3,800/kg cif Europe. As a result, magnet makers now face severe raw material cost volatility and procurement uncertainty.

This environment accelerates the search for alternatives to heavy rare earth dependent NdFeB grades. VAC explicitly cites volatile raw material costs and market uncertainty as major supply chain challenges. Therefore, its new alloy is positioned as a “geopolitically independent alternative” to traditional heavy rare earth based solutions. The goal is clear: decouple magnet performance from a small, politically sensitive set of Chinese-controlled metals.

Other Western players are also moving to build ex-China heavy rare earth capacity. Lynas has started small-scale dysprosium and terbium oxide production in Malaysia. US producer Energy Fuels has produced pilot-scale dysprosium and plans larger-scale dysprosium and terbium output in Utah by late 2026. MP Materials supplies a heavy rare earth concentrate, SEG+, containing dysprosium and terbium for downstream processors.

Western magnet supply chains pivot toward diversified feedstocks

VAC’s launch of a heavy rare earth free NdFeB alloy fits a broader diversification trend. Western magnet producers and their customers want designs that either use fewer heavy rare earths or none at all. This shift complements efforts to develop new mining, separation and recycling capacity outside China. It also supports OEM strategies to meet ESG targets and reduce geopolitical risk in EV and wind supply chains.

VAC emphasises the importance of resilient, regionally anchored magnet value chains. Its new alloy, fully produced in the West, supports that objective. However, performance in real-world motor and generator platforms will ultimately determine adoption. Automotive and industrial customers will test VACODYM 902 TP against existing HRE-containing grades on efficiency, temperature stability and cost.

If performance proves comparable, heavy rare earth free NdFeB alloy families could gain rapid traction. That would gradually reduce Western dependence on Chinese dysprosium and terbium, even as new ex-China projects ramp up. In parallel, recycling and alternative motor topologies may further ease heavy rare earth demand over the next decade.

The Metalnomist Commentary

VAC’s move shows how magnet technology, not only mining, will shape the next phase of the rare earth race. A commercially viable heavy rare earth free NdFeB alloy gives Western OEMs a real lever to hedge against Chinese export controls and price spikes. Market participants should watch qualification timelines closely, because large-scale adoption could materially shift dysprosium and terbium demand forecasts.

Lynas Noveon rare earth magnet deal boosts US supply security

Lynas

The Lynas Noveon rare earth magnet deal aims to build a resilient US magnet supply chain. The partnership links a major Australian rare earths producer with a US downstream magnet maker at a time of intensifying geopolitical pressure around critical minerals. By structuring the Lynas Noveon rare earth magnet deal around both light and heavy rare earth supply, the companies target segments most exposed to Chinese dominance.

The agreement remains non-binding but already sets a strategic framework for cooperation. It covers rare earth feedstock supply, joint development of production plants and coordinated sales of finished magnets to US end-users. As a result, the Lynas Noveon rare earth magnet deal positions both parties to tap growing demand from electric vehicles, wind turbines, defence platforms and advanced electronics. Crucially, they also plan to work with US policymakers to ensure the emerging supply chain qualifies under national-interest and security frameworks.

US rare earth magnet deal builds on Texas processing investments

Lynas already plays a central role in US rare earth industrial policy. The company is building a Texas facility capable of processing 2,500-3,000 t/yr of heavy rare earths and 5,000 t/yr of light rare earths with US government backing. This plant will provide the upstream foundation needed for the Lynas Noveon rare earth magnet deal, anchoring critical materials processing on US soil rather than in China or Southeast Asia.

Meanwhile, Noveon brings established magnet design and production capabilities, plus direct relationships with US industrial and defence customers. Together, the companies can shorten the distance from mine to magnet, increasing traceability and compliance with US sourcing rules. However, real impact will depend on how quickly the Texas plant ramps up and how fast Noveon can translate material flows into scalable magnet production capacity.

Part of a wider US rare earths and magnet realignment

This agreement comes amid a wave of US-linked rare earth and magnet deals. ReElement Technologies recently partnered with South Korea’s Posco International to develop an integrated rare earth and magnet plant. USA Rare Earth also agreed to acquire UK-based Less Common Metals to support a proposed 5,000 t/yr magnet facility in Oklahoma. These moves, together with the Lynas Noveon rare earth magnet deal, form a multi-node ecosystem designed to reduce US dependence on Chinese rare earth supply chains.

However, building a fully competitive mine-to-magnet value chain in North America will take time. Investment needs remain high, permitting timelines are uncertain, and Chinese producers still enjoy scale advantages and deep customer relationships. As a result, near-term pricing power and market share will likely stay concentrated in Asia, even as Western projects gradually add redundancy and optionality. For end-users, the key benefit in the medium term may be greater diversification rather than immediate cost reductions.

The Metalnomist Commentary

This deal underlines how rare earth strategy is shifting from isolated projects to networked partnerships spanning feedstock, processing and magnets. If Lynas and Noveon can execute on scale and cost, their alliance will become a cornerstone of a genuine US-aligned rare earth industrial base. For now, the real test lies in synchronising project delivery with rapidly evolving policy incentives and downstream demand.

Lynas Opens Australia’s First Fully Commissioned Rare Earths Facility in Kalgoorlie

Lynas Rare Earths

Australian rare earths producer Lynas Rare Earths has officially inaugurated the nation’s first fully commissioned rare earths processing plant in Kalgoorlie. This milestone marks a significant step forward in bolstering Australia’s rare earths production capabilities.

The A$800 million ($530 million) facility aims to process mixed rare earth carbonate sufficient to produce 9,000 t/yr of neodymium-praseodymium (NdPr), a vital material for rare earth magnets used in electric vehicles (EVs) and other advanced technologies. Currently, the processed rare earth carbonate is shipped to Lynas' Malaysian facility and is also expected to supply its planned facility in the United States.

Boosting NdPr Output and Expanding Operations

In Q3 2024, Lynas reported a production of 1,677t of NdPr oxide at its Malaysian plant, up from 1,504t in Q2 and 1,526t in Q3 2023. The Kalgoorlie facility is anticipated to further increase Lynas’ NdPr supply to meet growing global demand.

The Malaysian facility, meanwhile, is undergoing a major expansion. It is projected to commence production of dysprosium and terbium—critical materials for high-performance permanent magnets—by 2025. Additionally, the site’s reconfigured circuits will have the capability to separate up to 1,500 t/yr of mixed heavy rare earth compounds.

Global Implications of Lynas’ Expansion

As a leading producer of rare earths outside China, Lynas plays a key role in diversifying global supply chains for critical minerals. The Kalgoorlie facility enhances Australia's position as a reliable source of rare earth materials while supporting the development of advanced technologies such as EVs and renewable energy solutions.

Lynas record rare earth output sets new quarterly high

Lynas

Lynas record rare earth output topped 2,000t of NdPr in April–June, delivering its best quarter to date. Total rare earth oxide production reached 3,212t, up 47% year on year and 68% quarter on quarter. Neodymium-praseodymium output climbed to 2,080t as Lynas progressively commissioned assets.

Prices and demand strengthen

Sales revenue rose to A$170.2mn, up 38% quarter on quarter and nearly 25% year on year. The average selling price climbed to A$60.20/kg, the highest since July 2022. The increase coincided with China’s export controls on some medium and heavy rare earths in April. Meanwhile, China accelerated export-permit approvals and may have allocated initial production quotas.

Strategic moves expand capacity and scope

Lynas reported a significant rise in orders from direct customers and new magnet projects. However, it is preparing for continued market volatility in July–September. The company signed a non-binding deal with Korea’s JS Link to develop a 3,000 t/yr sintered magnet plant near its Malaysian site. Lynas will supply materials, and Malaysia’s floated raw-material export ban in 2023 did not proceed.

Lynas produced its first separated dysprosium in May and first separated terbium in June in Malaysia. As a result, it became the first producer of separated heavy rare earths outside China. Allocation of production capacity remains in progress. Lynas record rare earth output now aligns with new heavy rare earth capabilities.

Lynas also signed with Kelantan’s investment agency to secure new feedstock for Malaysia. Therefore, it aims to stabilise higher run rates while matching demand swings. Lynas record rare earth output positions the firm for growth despite near-term volatility.

The Metalnomist Commentary

Lynas’ record NdPr quarter, firmer pricing, and Dy/Tb separation outside China reduce supply-chain concentration risk. Yet short-term pricing will hinge on China’s permitting cadence and project ramps. The JS Link tie-up signals pragmatic downstream integration close to processing hubs.

Lynas LS Eco Rare Earth Metals Plan Targets Vietnam Magnet Supply Chain

Lynas, Rare Earth Metals

Lynas LS Eco rare earth metals cooperation could create a new non-China processing route for rare earth metals in Vietnam. Australian rare earths producer Lynas Rare Earths is working with South Korea’s LS Eco Energy on potential rare earth metal production at a planned plant in Vietnam.

The preliminary agreement would see Lynas supply rare earth oxides to LS Eco Energy’s upcoming rare earth metal plant for further processing. The initial focus is samarium, following Lynas’ first samarium oxide output at its Malaysian refinery earlier this month.

Lynas LS Eco rare earth metals cooperation matters because rare earth metal production is a key bridge between separated oxides and permanent magnets. Without metallisation capacity, oxide production alone cannot fully support magnet manufacturing for automotive, defense, aerospace, and clean energy applications.

Samarium Gives the Partnership Strategic Magnet Relevance

Samarium is strategically important because it is used in samarium-cobalt magnets. These magnets retain performance under high temperatures and demanding operating conditions, making them valuable for defense, aerospace, automotive, and advanced industrial systems.

Lynas has positioned itself as the only commercial producer of separated samarium, terbium, and dysprosium outside China. That makes its oxide supply especially relevant for customers seeking diversified rare earth supply chains.

If the preliminary agreement becomes definitive, Lynas could also supply metallised neodymium-praseodymium and selected heavy rare earth products, including samarium, dysprosium, and terbium. This would deepen the partnership beyond one material and support a broader magnet materials platform.

Vietnam Plant Could Support LS Eco’s US Magnet Ambition

LS Eco Energy, owned by LS Cable & System, is trying to build a full rare earth permanent magnet value chain. Its plan includes rare earth metal production in Ho Chi Minh City before eventual permanent magnet production in the US.

The company’s board approved a 28.5bn won investment for the Vietnam plant in December 2025. LS Eco Energy is also conducting a feasibility study for a US permanent magnet plant and holding discussions with authorities in Virginia, where the facility could be located.

The Lynas LS Eco rare earth metals agreement also includes a commitment to negotiate definitive deals and cross-subscribe to about A$30mn of convertible instruments each. This structure suggests both companies want a deeper strategic relationship, not only a simple oxide supply contract.

The Metalnomist Commentary

The Lynas-LS Eco agreement shows that rare earth competition is moving from oxide separation into metal and magnet manufacturing. Vietnam could become an important intermediate node if Lynas’ non-China oxide supply and LS Eco’s magnet strategy are successfully connected.

Lynas Texas rare earth processing plant faces wastewater permitting hurdles

Lynas Texas Rare Earth

The Lynas Texas rare earth processing plant now looks unlikely to proceed. Lynas Rare Earths flagged wastewater-related permitting barriers that have not eased. However, chairman John Humphrey said progress has stalled in recent months. Therefore, the Lynas Texas rare earth processing plant has shifted from growth option to execution risk.

The Lynas Texas rare earth processing plant targeted both heavy and light rare earth separation capacity. The plan covered 2,500–3,000 tonnes per year of heavy rare earths and 5,000 tonnes per year of light rare earths. Meanwhile, water treatment complexity pushed cost risk higher earlier in the year. As a result, management signaled deeper uncertainty around the project in October.

DoD support sharpens the strategic stakes for rare earth processing

US policy makers want faster rare earth processing capacity outside China. United States Department of Defense agreed in 2023 to provide up to $258mn in support for the proposed project. However, Lynas expects to pursue commercial offtake arrangements using material from Malaysia operations. Meanwhile, MP Materials received a NdPr price floor that can stabilize domestic magnet inputs. Therefore, permitting becomes a central constraint on supply chain security goals.

Operational outages add near-term uncertainty to feedstock flows

Lynas also faces operational headwinds beyond permitting. Power outages at Kalgoorlie disrupted feedstock production that supports downstream output. Meanwhile, the company expects to lose about one month of rare earth production at its Malaysian plant. However, it cannot yet quantify the full production impact. As a result, delivery planning and customer confidence may depend on clearer recovery timelines.

The Metalnomist Commentary

This case shows how wastewater permitting can reshape critical minerals timelines faster than capital support. However, DoD-backed demand signals still favor separated oxides and NdPr outside China. Therefore, execution will hinge on permitting solutions and resilient feedstock operations.

Samarium Oxide Export Prices Fall as Lynas Output Pressures Chinese Offers

Lynas

Samarium oxide export prices fell as Chinese suppliers lowered offers in response to Lynas’ first samarium oxide production at its Malaysian refinery. The 99.5% samarium oxide export range dropped to $6-8/kg fob China after reaching a record $11-14.50/kg in late February.

The price decline reflected a shift in market sentiment rather than a full easing of supply constraints. Chinese export permits remain difficult to obtain, especially for shipments to Japan, but Lynas start-up introduced a credible non-China supply route for downstream users.

Samarium oxide export prices had surged earlier because of China’s tighter export control framework for medium and heavy rare earths. The emergence of Lynas output has now weakened the pricing leverage of some Chinese sellers, even though China still dominates global samarium supply.

Lynas Start-Up Adds Non-China Supply for SmCo Magnet Producers

Lynas produced first samarium oxide at its Malaysian refinery on 19 March, adding another separated heavy rare earth product to its portfolio. The company is the only commercial producer of separated samarium, terbium and dysprosium outside China.

The Australian producer is expected by market participants to raise samarium output to about 1,100 t/yr. That volume could be enough to cover a meaningful share of downstream demand in Japan, where samarium-cobalt magnet manufacturing is concentrated outside China.

Samarium-cobalt magnets are used in high-temperature and high-reliability applications across aerospace, defense, automotive, electronics and advanced industrial systems. The material’s strategic value is higher than its market size suggests because SmCo magnets are difficult to replace in demanding environments.

Lynas also plans to expand its product line to include gadolinium, yttrium and lutetium over the next two years. This would further strengthen non-China supply options for selected medium and heavy rare earth oxides.

China Export Controls Still Shape Samarium Market Risk

China continues to control more than 90% of global samarium oxide supply, with global production estimated at about 4,900t in 2025. Output is expected to rise to around 5,000t in 2026 as Lynas adds volume and Chinese production remains steady.

Beijing’s export restrictions remain the main structural risk. China has placed samarium, gadolinium, dysprosium, terbium, yttrium, lutetium and scandium under tighter export controls from 4 April, adding uncertainty for buyers outside China.

Japan is particularly exposed because it is China’s largest buyer of samarium products, accounting for more than 85% of Chinese shipments. Japanese buyers have reported difficulties securing export permits for samarium products since late October, following a sharp deterioration in China-Japan relations.

The price correction therefore does not mean the market has fully normalised. Samarium oxide export prices are now being pulled in two directions: Lynas is weakening China’s supply monopoly, while Chinese licensing controls continue to restrict trade flows into key magnet markets.

The Metalnomist Commentary

Lynas’ samarium start-up shows how even modest non-China output can change rare earth pricing psychology. However, China’s export licensing power remains decisive, especially for Japan’s SmCo magnet industry.

China Imposes Export Controls on Rare Earths, Shaking Global Supply Chains

China Rare Earths

New Export Restrictions Target Samarium, Terbium, Dysprosium, and Other Critical Elements

China has imposed immediate export controls on a wide array of rare earth elements, including samarium, terbium, dysprosium, and yttrium. The controls also affect alloys, NdFeB magnets, and samarium-cobalt permanent magnets, deepening global concerns about rare earth supply security.

This move aligns with China’s dual-use item control scheme, formalized last year through new legislation. The Ministry of Commerce stated the action reflects international norms for items with both civilian and military applications.

However, the timing is widely viewed as retaliation against recent US tariffs. Over the past two years, China has imposed controls on other strategic metals, including gallium, germanium, and graphite, amid intensifying geopolitical tensions with Western nations.

Global Markets Brace for Disruption as Permit Delays and Shortages Loom

Exporters must now submit documentation verifying both end-user and end-use, with immediate suspension of exports if changes occur. Though the official permit process takes 45 days, actual approvals may be delayed depending on destination countries.

Past implementation of similar schemes caused price spikes in metals like antimony and bismuth, as exporters struggled to receive permits. The European antimony market currently trades at historically high premiums due to such restrictions.

In this new round, heavy and medium rare earth exports may decline significantly, given the processing uncertainties. The rules apply globally—not just to the US—raising concerns across Japan, Korea, and Europe.

US and Japan Face Supply Shock as China Tightens Rare Earth Dominance

China supplies over 90% of the world’s rare earths, making the new controls especially impactful for US and Japanese industries. The US lacks alternative sources for heavy rare earths like dysprosium and terbium, with Lynas Malaysia not expected to deliver separated output until 2025.

Japan, a key importer of dysprosium and terbium, is highly exposed. Traders warn that non-Chinese suppliers may raise prices in response, although ramp-up timelines for new mines remain uncertain.

Meanwhile, Chinese imports of US rare earth ores may fall due to Beijing’s new 34% retaliatory tariffs, though this will have limited domestic impact, as China sources much of its supply from Myanmar, Laos, and internal mines.

The Metalnomist Commentary

China's rare earth export controls signal a new escalation in materials diplomacy. With the West struggling to develop non-China supply chains, this move could accelerate diversification efforts—but not without short-term disruptions. For global industries relying on permanent magnets and high-tech alloys, the clock is ticking.

China and Turkey Forge Rare Earth Partnership to Meet Growing Global Demand

China Mining 2024

China and Turkey have taken a significant step towards enhancing their cooperation in the rare earth sector, an industry critical to the global energy transition and high-tech manufacturing. Turkish Energy and Natural Resources Minister Alparslan Bayraktar announced on the social media platform X that the two nations signed a preliminary agreement to jointly develop rare earth resources. This move underscores the growing importance of rare earth elements (REEs) in industries such as electric vehicles (EVs) and renewable energy.

Turkey’s Rare Earth Potential

In July 2022, Turkey revealed the discovery of what it claims to be the world’s second-largest rare earth deposit in Eskisehir province, estimated at 694 million tons. This vast resource positions Turkey as a potential key player in the global rare earth market. Plans are already underway to establish rare earth separation and processing facilities capable of extracting 570,000 tons per year of REEs, as Bayraktar disclosed during the China Mining 2024 conference in Tianjin.

Strategic Partnership in Critical Minerals

The newly signed agreement between Bayraktar and China's Minister of Natural Resources Wang Guanghua highlights China's commitment to securing rare earth supplies amid escalating global demand. China, which possesses 44 million tons of rare earth reserves—38% of the global total—remains the world leader in rare earth production and refining, controlling nearly 70% of global output in 2023.

Global Market Implications

Rare earths are indispensable for producing NdFeB magnets, a key component in EVs, wind turbines, and industrial robotics. With increasing demand from the EV industry, China’s largest EV manufacturer, BYD, has also expanded its international production footprint. BYD’s partnership with Turkey’s industry ministry aims to produce 150,000 EVs annually, aligning with global electrification goals.

The Need for Diversification

Geopolitical tensions have driven western nations to reduce their reliance on Chinese rare earths. Companies like Australia’s Lynas Rare Earths and US-based MP Materials are investing in alternative supply chains, focusing on heavy rare earth (HRE) production.

This collaboration between China and Turkey not only secures Turkey’s strategic position in the rare earth market but also reflects the intensifying global race to secure critical minerals for the energy transition.

Japan Invests in French Rare Earths to Diversify Supply Chain

Iwatani

Jogmec and Iwatani to secure dysprosium and terbium from France by 2027

Japan is expanding its rare earth supply base through a strategic investment in France. On 17 March, Japan’s state-owned energy agency Jogmec and metals trading firm Iwatani announced a joint investment of up to €110 million ($120 million) in Lyon-based rare earths company Caremag.

Rare earth supply to start by 2027

Under the agreement, Iwatani will secure term contracts for around 250t/year of dysprosium and 45t/year of terbium. Jogmec said these quantities represent about 20% of Japan’s projected heavy rare earth (HRE) demand. Deliveries are expected to begin as early as 2027, assuming Caremag starts operations in late 2026.

Caremag plans to process both recycled magnets (2,000t/year) and raw ore (5,000t/year) at a new facility in the Lacq industrial zone in southwestern France, according to Japan’s Ministry of Economy, Trade and Industry (Meti).

Japan pursues supply diversification strategy

Tokyo continues efforts to reduce reliance on China, which dominates the global rare earths market. Jogmec emphasized the importance of diversifying rare earth sources for permanent magnets—classified as strategically critical since 2022.

In 2023, Jogmec and Sojitz also invested in Australia-based Lynas Rare Earths, securing 65% of its dysprosium and terbium output. The new partnership with France aligns with the broader bilateral "Japan-France Declaration on Cooperation in the Field of Critical Minerals," signed in May 2024.

Australia–Japan critical minerals partnership targets secure supply chains

Critical Minerals

Australia–Japan critical minerals partnership moves to the forefront of bilateral ties. Australia–Japan critical minerals partnership builds on decades of energy cooperation. Australia–Japan critical minerals partnership seeks resilient, non-China supply for strategic industries.

From energy security to economic security

Australia and Japan will deepen cooperation on critical minerals. The focus shifts from LNG and coal to strategic metals. Penny Wong flagged economic security as the next stage of ties. Japan depends on stable inputs for EVs, magnets, and semiconductors. Australia offers scale, rule-of-law, and proximity to Asian markets.

Deals signal scope across rare earths and nickel

Existing projects anchor momentum for the Australia–Japan critical minerals partnership. Sojitz and Jogmec signed an A$200mn Lynas offtake in 2023. They agreed to buy 65% of Lynas’ heavy rare earth output. Sumitomo Metal Mining and Mitsubishi joined Ardea’s Kalgoorlie nickel project. The study outlines potential to reach 4mn t/yr of nickel. These deals pair Japanese capital with Australian resources and processing.

Strategic rationale and next steps

The partnership seeks resilient, transparent supply chains. It aligns with allied de-risking and industry policy goals. Therefore, both sides will likely back midstream processing in Australia. Meanwhile, long-term offtakes can underwrite project finance. Standardization and ESG traceability will strengthen market access. Early wins could include magnet-grade REO and battery-grade nickel.

The Metalnomist Commentary

Tokyo and Canberra are upgrading a proven model: Japanese investment plus Australian ore becomes strategic metals. The hinge now is midstream capacity and bankable offtakes; refining in Australia will test costs but de-risk geopolitics.