Lynas Accelerates Heavy Rare Earth Expansion in Malaysia, Strengthening Position as China Alternative
GEBENG, April 10 – Lynas Rare Earths is ramping up its investment in heavy rare earth production in Malaysia, reinforcing the country’s role as a strategic alternative to China in the global supply chain.
The expansion centres on Lynas’ processing facility in Gebeng, Pahang, which has become one of the largest rare earth separation hubs outside China.
Lynas Malaysia chief operating officer Pol Le Roux said the company has already achieved key milestones in producing heavy rare earth elements such as dysprosium, terbium, and samarium.
“We are now moving into the next phase, developing full separation capabilities to meet evolving market demand,” he said.
Focus on High-Value Materials and Industrial Demand
Heavy rare earth elements are critical for producing high-performance magnets used in electric vehicles, wind turbines, advanced electronics, and defence systems.
Demand for these materials has surged following China’s export restrictions in 2025, creating opportunities for alternative suppliers to expand their market share.
The Gebeng facility, operational since 2012, supplies materials essential to a wide range of high-tech industries.
Full Processing Capability Under Development
Lynas has begun detailed engineering work to establish full rare earth separation capabilities, allowing it to produce a broader range of elements based on market needs.
Le Roux said the company aims to achieve full operational capability by late next year, enhancing its flexibility and competitiveness.
Partnership Strategy for Downstream Growth
Chief executive Amanda Lacaze said Lynas is pursuing partnerships with high-performance magnet manufacturers to strengthen its downstream value chain.
Rather than entering manufacturing independently, the company plans to collaborate with established players to bridge the gap between raw material processing and end-product production.
Malaysia Gains Ground in Critical Minerals Sector
Lynas currently accounts for about 10 per cent of global rare earth supply, compared with China’s dominant 90 per cent share.
The expansion is expected to further position Malaysia as a key player in the global critical minerals ecosystem, particularly in supporting energy transition and advanced technologies.
The company’s recently renewed 10-year operating licence, subject to stricter environmental conditions, reflects the government’s approach to balancing industrial growth with sustainability.
This development highlights Malaysia’s growing importance in efforts to diversify global rare earth supply chains and reduce reliance on a single dominant source.
-wilayah.com.myhttp://wilayah.com.my
