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| Lynas Rare Earths |
Deal Targets Malaysian Clay Feedstock for MREC Production
Strategic Boost for Malaysia’s Rare Earths Industry
Lynas Rare Earths has entered into a memorandum of understanding (MoU) with Menteri Besar Inc. (MB Inc.), the investment arm of the Kelantan State Government, to explore a potential supply agreement for mixed rare earth carbonate (MREC) sourced from Malaysia’s ionic clay deposits.
The non-binding MoU outlines the intent to negotiate a formal supply deal, which could see MREC delivered to Lynas Malaysia’s advanced materials plant in Kuantan once commercial production in Kelantan begins.
The partnership aligns Lynas’ technical expertise and environmental standards with Kelantan’s push to develop its rare earth resource base, positioning Malaysia as a regional center of excellence for rare earths.
Key Points:
- MB Inc. is leading rare earth development in Kelantan.
- MoU supports local feedstock sourcing and sector growth.
- Malaysian clay deposits offer high concentrations of heavy rare earths.
- Future feedstocks to support Lynas’ supply chain in EVs and electronics.
- Any final deal will require feedstock to meet Lynas’ strict environmental and technical criteria.
CEO Amanda Lacaze stated:
“This MoU is a major step forward for Lynas and Malaysia’s rare earths industry. We look forward to working with MB Inc. to develop local supply that meets global standards.”
ScrapInsight Commentary:
This MoU marks a strategic alignment of government-backed exploration and private sector processing capacity. With global demand for heavy rare earths accelerating, especially for electric vehicles and electronics, Malaysia’s untapped clay resources could become a vital supply source. Lynas’ advanced processing infrastructure, paired with Kelantan’s growing resource base, sets the stage for a resilient Southeast Asian rare earths supply chain—a timely move amid rising geopolitical tension in global critical minerals markets.
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