Race for Rare Earths Heats Up as Lynas Plans New Malaysia Facility
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Australia's Lynas Rare Earths, the world’s largest producer of rare earths outside of China, announced plans Tuesday to build a 500 million ringgit ($106 million) heavy rare-earths separation facility in Malaysia, a move to shore up the global supply of strategic minerals outside of China amid rising geopolitical friction.
The new plant, with a projected annual processing capacity of 5,000 tons, is designed to meet growing demand for a supply chain independent of Beijing, the Australian company said in a statement on October 29.
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- Lynas Rare Earths will invest $106 million in a new heavy rare-earths separation facility in Malaysia, with 5,000-ton annual capacity, to boost supply chains outside China.
- The move follows China’s April 2025 export controls on seven key rare earths, intensifying demand from Western defense and technology sectors.
- Malaysia banned raw rare-earth exports in August 2025; the U.S. and its allies are forging new supply chain alliances amid ongoing China-U.S. diplomatic engagement.
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Who’s Who
- Lynas Rare Earths
- [Chinese: 莱纳斯稀土公司] Lynas Rare Earths is the world's largest non-Chinese producer of rare earths. They plan to build a heavy rare-earths separation facility in Malaysia to boost the global supply chain, independent of China. Lynas is the sole non-Chinese supplier of dysprosium and terbium, and also plans a facility in Texas, though its development is uncertain.
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What Happened When
- April 2025：
- China decided to impose export controls on seven key heavy rare earths, including dysprosium and terbium.
- April 2025：
- China reportedly agreed to share processing technologies with Malaysia for rare-earth development.
- By May 2025：
- Lynas began large-scale production of dysprosium at its existing plant in Kuantan, Malaysia.
- By June 2025：
- Lynas began large-scale production of terbium at its existing plant in Kuantan, Malaysia.
- August 2025：
- Malaysia implemented a ban on unprocessed rare-earth exports.
- August 2025：
- In an investor call, Lynas CEO Amanda Lacaze described the development timeline for the U.S. plant as 'long and uncertain.'
- October 26–28, 2025：
- U.S. President Trump’s Asia tour included framework agreements on mineral cooperation with Japan, Thailand, and Malaysia.
- October 29, 2025：
- Lynas Rare Earths announced plans to build a heavy rare-earths separation facility in Malaysia.
- October 29, 2025：
- Lynas stated the new plant is designed to meet growing demand for a supply chain independent of Beijing.
- October 2025：
- Malaysia signed a critical minerals agreement with the U.S. during President Trump’s Asia tour.
- October 30, 2025：
- U.S. President Trump and Chinese President Xi Jinping met in Busan, South Korea, and reached an understanding on the rare earth issue.
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