Strategic Agreement Advances Rare Earth Sector
Lynas Rare Earths has signed a memorandum of understanding with Malaysia’s Menteri Besar Inc. The non-binding agreement sets the stage for the future supply of mixed rare earth carbonate from Kelantan. MB Inc. is the investment arm of the Kelantan State Government and leads rare earth development in the region.
The MoU outlines plans to negotiate a formal supply deal once production commences. This agreement would see Malaysian clay feedstock delivered to Malaysia’s advanced materials plant in Kuantan.
Lynas CEO Confirms Industry Milestone
CEO and Managing Director Amanda Lacaze welcomed the agreement. “Lynas is delighted to sign this MoU with the Kelantan State Government’s MB Inc.,” she said.
She added, “This is a significant step and the Malaysian rare earths industry, bringing together Lynas Malaysia’s over a decade of rare earths industry expertise, and Kelantan State’s rare earth resources.”
Malaysia’s Growing Role in Rare Earth Supply Chains
Lacaze stated that Malaysia is now recognised as a rare earths centre of excellence. She said, “This MoU will see us work with MB Inc. to develop Malaysia’s locally sourced and separated rare earth products.”
She highlighted Malaysia’s ionic clay as a valuable resource. “Malaysia’s ionic clay deposits have excellent potential as future feedstocks for Lynas Malaysia,” she said. “Particularly given their high proportion of heavy rare earths which are in demand for future-facing technologies including electric vehicles and electronics.”
Environmental and Technical Standards Remain Central
Lynas confirmed its commitment to maintaining strict environmental and technical requirements. “We look forward to working with MB Inc. to ensure that the MREC it produces meets the high environmental and technical standards required by Lynas and our customers in Malaysian and global manufacturing supply chains,” Lacaze said.
MoU Supports Development and Supply Goals
The agreement supports both Kelantan’s regional development and Lynas’s long-term supply strategy. MB Inc. seeks to establish Kelantan as a hub for rare earth production. Lynas aims to secure consistent, quality feedstock for its Kuantan facility.
The Kuantan plant plays a key role in Lynas’s production of separated rare earth materials. The facility supplies critical minerals for technologies including clean energy, communications, defence, and electronics.
Broader Impact on Global Rare Earth Market
The MoU highlights Malaysia’s growing role in international rare earth supply chains. Global demand for heavy rare earths continues rising amid the transition to low-carbon technologies. Nations increasingly seek diversified, secure supply sources beyond China.
This partnership between Lynas and MB Inc. adds a new dimension to Southeast Asia’s position in the rare earth value chain. It also demonstrates Australia’s ongoing engagement in strategic mineral partnerships throughout the Indo-Pacific.
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Next Steps for the Agreement
The current MoU is non-binding and subject to final negotiations. The parties will work towards a definitive agreement to commence supply once MB Inc.’s project reaches production stage.
Once formalised, the supply agreement would deliver mixed rare earth carbonate to Lynas’s Kuantan plant. This material would be processed into refined rare earth products for global markets.
Corporate and Market Context
Lynas Rare Earths Limited is listed on the ASX under the ticker LYC. The company also trades over the counter in the US as LYSDY. It operates the only significant rare earth separation plant outside China.
Lynas’s Malaysian operations are central to its global strategy. The company focuses on maintaining compliance with both international environmental standards and customer specifications.
