Lynas Rare Earths Limited (ASX: LYC, OTC: LYSDY) has announced to have a new Heavy Rare Earth (HRE) separation plant within the current plant in Malaysia. The growth will serve to address high demand in the world to find alternative and tighter sources of Heavy Rare Earth oxides that are not Chinese.
The new plant will have a processing capacity of up to 5,000 tonnes per year HRE feedstock, most of which is supplied by Lynas high grade Mt Weld deposit in Western Australia, as well as by other regional sources such as ionic clay deposits in Malaysia.
This enables Lynas to be the sole key producer of separated Light and Heavy Rare Earths beyond China, which is a key strategic strength considering the imminent demand by the electronics, electric vehicle (EV), and renewable energy sectors.
Key Findings from Lynas Rare Earths Limited’s Malaysia Expansion
The new HRE separation plant will be oriented towards the production of important materials needed in the current manufacturing and clean energy technologies.
Highlights:
- Nameplate capacity: 5,000 tonnes per annum of HRE feedstock.
- Initial production target: Samarium (Sm) from Mt Weld feedstock by April 2026.
- Full product suite: Samarium (Sm), Gadolinium (Gd), Dysprosium (Dy), Terbium (Tb), Yttrium (Y), and Lutetium (Lu).
- Future potential products: Europium (Eu), Holmium (Ho), Ytterbium (Yb), and Erbium (Er).
- Estimated project cost: A$180 million (MYR 500 million), fully self-funded following a September 2025 equity raising.
- Target output volumes:
- Samarium – 1,100 tonnes
- Gadolinium – 400 tonnes
- Dysprosium – 250 tonnes
- Terbium – 50 tonnes
- Yttrium – 1,100 tonnes
- Lutetium – 10 tonnes
Compared to global averages, Lynas’ projected capacity positions it among the few producers capable of scaling Heavy Rare Earths supply at commercial volumes outside China.
Economic and Strategic Benefits for Lynas Rare Earths Limited
According to CEO Amanda Lacaze, the new Malaysian facility aligns with the company’s “Towards 2030” growth plan and strengthens its global market reach.
“Market demand for Heavy Rare Earths is high, and Lynas can be selective in where, and at what price, we sell Heavy Rare Earth oxides,” said Ms Lacaze.
“Offtake agreements will be negotiated on a price floor basis, with priority for customers where Lynas services 100% of their requirements,” she added.
By focusing on premium pricing and key partnerships in electronics and defence industries, Lynas Rare Earths Limited aims to maximise returns and maintain a balanced global supply chain.
The company remains one of the most reliable suppliers of critical minerals outside China, a position that continues to attract strong investor confidence.
Lynas Rare Earths Limited’s Resource and Exploration Outlook
The raw material to feed the increased production will be mainly sourced in the Mt Weld rare earths deposit which is considered to be one of the largest known sources of the Light and Heavy Rare Earths in the world. New sources of feedstock will be introduced with new ionic clay projects in Malaysia and other locations currently under study.
The plant will use the modern separation technologies that are in-house developed through research and development teams in Lynas. The company observed that it has available laboratories and knowledge that can help it implement the project in a sustainable and cost-effective manner.
Construction is subject to regulatory approvals and Lynas will make a staged roll-out; priority products are to be launched initially followed by commissioning of capacity to the complete range of separated HREs in two years.
Market and Strategic Environment
The Heavy Rare Earths, especially Dysprosium and Terbium are in high demand all over the world because they are necessary in electric car motors, in wind turbines and in defence technologies.
EV sector is expected to outperform the other industries and become even greater than two times the consumption of rare earths by 2030, and Western countries are gaining momentum to diversify their supply chains beyond Chinese control.
The operational centre that Lynas has in Malaysia and Western Australia gives it a jurisdictional advantage such that there is consistency in its production as well as in meeting its high environmental, social, and governance (ESG) standards.
The integrated production system of the company promotes the overall strategy of Australia to build a secure and value-added sector of critical minerals to its global partners and other countries such as Japan, the United States, and the European Union.
Investor Outlook for Lynas Rare Earths Limited
Lynas Rare Earths Limited (ASX: LYC) shares were listed at A$15.57 and down 1.52 per cent in a day, as of 29 October 2025, and the market capitalisation is A$15.91 billion. 
Lynas Rare Earths Limited shareprice
In the last one year, the stock of Lynas has been resilient in the volatile market due to the optimism of the institutional investor with long-term demand of critical minerals. Further upside potential is anticipated as the construction milestones are met and offtake agreements are finalised by the analysts.
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Final Thoughts
The move by Lynas to expand its operation in Malaysia is a milestone towards the global supply chain of rare earths. As the new capacity to separate Heavy Rare Earths is established and the company has a strong plan to serve high demand markets, the company will strengthen its position as a cornerstone supplier of critical minerals to the clean energy transition.
The new facility will once it is operational, also establish Lynas Rare Earths as the largest rare earths producer in the world outside China, which is in line with globalization in diversifying and getting sustainable sources of important materials.
FAQs
- What is Lynas Rare Earths Limited’s new Heavy Rare Earth facility in Malaysia?
Lynas Rare Earths Limited is developing a new Heavy Rare Earth separation facility at its existing Malaysian plant to increase the global supply of critical minerals used in clean energy and advanced manufacturing.
- How much is Lynas Rare Earths Limited investing in the Malaysia Heavy Rare Earth project?
The company plans to invest approximately A$180 million (MYR 500 million), fully funded through an equity raise completed in September 2025.
- What is the annual processing capacity of the new Lynas Rare Earths Limited facility?
The new facility will have a nameplate capacity of 5,000 tonnes per annum of Heavy Rare Earth feedstock sourced from Mt Weld and other deposits.
- Which rare earth elements will Lynas Rare Earths Limited produce at the new plant?
The initial production will include Samarium (Sm), Gadolinium (Gd), Dysprosium (Dy), Terbium (Tb), Yttrium (Y) and Lutetium (Lu), with potential future production of Europium, Holmium, and Ytterbium.
- When will Lynas Rare Earths Limited begin production at the Malaysia facility?
First production of Samarium (Sm) is forecast for April 2026, with full capacity expected within two years of commencement.
- Where will Lynas Rare Earths Limited source feedstock for the new facility?
Feedstock will primarily come from the company’s Mt Weld deposit in Western Australia and other regional sources, including ionic clay deposits in Malaysia.
- How does the new project support Lynas Rare Earths Limited’s global strategy?
The expansion is a key part of the company’s “Towards 2030” growth strategy, reinforcing its position as the world’s leading supplier of separated Light and Heavy Rare Earths outside China.
- What are the economic benefits of Lynas Rare Earths Limited’s Malaysia expansion?
The project will help meet increasing global demand for rare earths, especially in EVs, wind turbines, and defence technologies, while securing premium pricing through long-term offtake agreements.
- How does Lynas Rare Earths Limited ensure environmental and ESG compliance?
Lynas operates under strict ESG standards, using in-house laboratories and sustainable processing methods to minimise environmental impact and support responsible mining.
- How will the expansion affect Lynas Rare Earths Limited’s position in global markets?
The Malaysia facility strengthens Lynas Rare Earths Limited’s role as a reliable supplier in diversified supply chains, reducing reliance on China for critical mineral resources.
