Lynas' projects will help KL be vital cog in rare earth supply chain

Aussie miner's expansion in Malaysia comes amid US-China battle over critical minerals

- Shannon Teoh Malaysia Bureau Chief

Australian miner Lynas is expanding its Malaysian operations to not only produce more rare earths but also to make super magnets from the critical minerals crucial to high-tech applications in electronics and green energy.

These projects will make Malaysia a vital cog in the global supply chain of rare earths by 2030, according to government plans, by which time the rare earth industry could be worth up to US$28 billion (S$36.4 billion) globally.

Lynas announced on Oct 29 that it will invest RM500 million (S$156 million) to expand its refinery in Gebeng, an industrial park near Pahang's capital Kuantan. It is also finalising a partnership with South Korean firm JS Link to make 3,000 tonnes of super magnets, a strong permanent magnet, at a neighbouring site.

The plans come amid a supply crunch of the critical minerals - a crux of 2025's tech war between the United States and China.

Speaking on the sidelines of a rare earth trade event on Nov 3 in the Malaysian administrative capital of Putrajaya, Science, Technology and Innovation Minister Chang Lih Kang told The Sunday Times that "God willing", Lynas' licence will be renewed in March 2026.

Mr Chang, who oversees the Atomic Energy Licensing Board (AELB), said the government is "happy with the progress" of the company's research into extracting materials from its waste.

Lynas' operations in Malaysia had sparked concerns about pollution, and the regulators had imposed additional conditions on the company since it began operating its facility in 2012. These include building a permanent disposal facility and eventually moving cracking and leaching processes - that result in low-level radiation waste outside Malaysia.