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Mining explorer Lynas Rare Earths (ASX:LYC) is injecting $180 million into its Malaysia operations to build a new heavy rare earths facility that’s expected to “meet strong market demand for a reliable outside China source.”
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This new facility will be able to separate as much as 5,000 tonnes per annum of heavy rare earth feedstock, the explorer said today, all drawn from its high-grade Mt Weld deposit in Western Australia. Other sources under development, like the ionic clay deposits in Malaysia, will eventually be looped in, too.
Lynas Rare Earths internally made the HRE facility – fully self-funded by the company’s September capital raise – a key priority as more and more global buyers look to find ex-China sources for their feedstock.
“The new heavy rare earths processing facility in Malaysia is a key element of our Towards 2030 growth strategy,” said Lynas CEO Amanda Lacaze.
“Lynas can [now] be selective in where, and at what price, we sell.”
Construction is still subject to several regulatory hurdles before work begins.
Once that red tape has been cleared, though, Lynas plans to begin its phased buildout with first production of Samarium from Mt Weld in April next year.
Processing capacity will then ramp up “progressively,” HotCopper understands, with an initial suite of Heavy Rare Earths (including Samarium, Gadolinium, Dysprosium, Terbium, Yttrium, and Leutetium) all available by 2027.
Lynas’ nameplate is targeting the following processing capabilities:
- 1,100 tonnes Samarium,
- 400 tonnes Gadolinium,
- 250 tonnes Dysprosium,
- 50 tonnes Terbium,
- 1,100 tonnes Yttrium, and,
- 10 tonnes Lutetium
Upgrades at the $180M plant in Malaysia in the future may also allow Lynas to process other elements: Europium, Holmium, Ytterbium, and Erbium.
Lynas has also already locked down several “favourable” contracts to coincide with the plant’s firing; those are tied to Dysprosium and Terbium output. Lynas also plans to negotiate several more offtake deals by next year.
“In 2025, we have proven our ability to separate the two in demand heavy rare earth oxides, Dy and Tb, alongside our proven ability to produce LRE at scale,” Ms Lacaze said. “Our plan to produce Samarium by April 2026 further demonstrates our ability to move quickly and efficiently in line with customer needs.”
This morning, LYC heads into Wednesday trade at $15.81/sh.
The company’s price has been -6.4% this month, despite the Albo-Trump deal.
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