Lynas to establish new rare earths facility  

Lynas Rare Earths (ASX: LYC) is establishing a $180m separation facility in Malaysia to secure a reliable source of heavy rare earth (HRE) oxides outside of China. 

The new facility will have the capacity to separate up to 5000tpa of HRE feedstock which will come from the miner’s high-grade Mt Weld rare earths deposit in addition to other sources to be developed. 

The phased construction of the facility will see priority projects delivered first. First production of samarium from Mt Weld feedstock is planned for April 2026. 

Processing capacity will be progressively added with the initial suite of separated HREs planned to be available within two years. 

Lynas chief executive and managing director Amanda Lacaze says the new facility is a key element of the company’s Towards 2030 growth strategy. 

“Market demand for HREs is high and Lynas can be selective in where, and at what price, we sell HRE oxides,” she said. 

“Offtake agreements for the new HRE production will be negotiated on a price floor basis and priority will be given to customers where Lynas is servicing 100% of their requirements. 

“Lynas will prioritise market segments where pricing is more favourable, such as the electronics industry. 

“Lynas is part of a current functioning and reliable outside China supply chain. Lynas is the only outside China producer able to supply both light and heavy rare earth products.” 

Lynas is currently in discussions to secure offtake of the expanded range of HRE products at fair prices.