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| Rare Earth |
Landmark Production at Lynas Malaysia
Lynas Rare Earths (ASX:LYC) has achieved a critical milestone by producing dysprosium oxide for the first time at its Malaysian facility, making it the only commercial producer of separated heavy rare earths outside China. The announcement was made on Friday, marking a significant development in global efforts to diversify critical mineral supply chains.
The new heavy rare earth separation circuit at Lynas Malaysia began commissioning in Q1 2025. The company plans to start terbium oxide production in June, further enhancing its heavy rare earth portfolio.
Strengthening Global Supply Chain Resilience
Dysprosium is vital for manufacturing high-performance magnets used in electric vehicles (EVs) and wind turbines. Lynas already supplies light rare earths like neodymium and praseodymium, but its move into heavy rare earths responds directly to geopolitical concerns over China's dominance in rare earth markets.
“This is a significant step for supply chain resilience,” said CEO Amanda Lacaze. “Lynas is now the world’s only commercial producer of separated heavy rare earth products outside China.”
She added that the company is actively engaged with customers in Japan, the United States, and Europe, who are seeking non-Chinese sources of supply.
Global Demand and Market Impact
According to Lynas, prices for heavy rare earths like dysprosium and terbium are expected to reflect strong demand in Western markets. This aligns with broader efforts across industries to secure alternative sources for critical minerals essential to clean energy, defense, and high-tech manufacturing.
Lynas' expanded capability positions the company at the forefront of strategic supply chain realignment, offering a reliable source of heavy rare earths outside of China’s reach.
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