Lynas Rare Earths Ltd. will establish a new Heavy Rare Earth (HRE) separation facility at Lynas Malaysia to meet strong market demand for a reliable outside China source of HRE oxides. The new HRE facility will have processing capacity to separate up to 5,000 metric tons per year of HRE feedstock and will build on Lynas’ ability to produce HRE oxides in commercial quantities.
Lynas’ in-house expertise, laboratories and production facilities enable Lynas to cost-effectively complete this project for approximately $117 million. The project will be self-funded following the equity raising successfully completed in September 2025.
Feedstock for the new HRE facility will come from Lynas’ high-grade Mt Weld rare earths deposit, which contains both Light and Heavy Rare Earths, and from other sources to be developed, such as ionic clay rare earth deposits in Malaysia. Together with its Light Rare Earth products, Lynas Malaysia currently produces separated Dysprosium and Terbium oxide. This new facility will increase HRE production capacity and provide customers with an expanded suite of separated HRE products needed for modern manufacturing.
The phased construction of the facility will deliver priority products first, with the first production of Samarium from Mt Weld feedstock expected in April 2026. Processing capacity will be progressively added, with the capacity for the initial suite of separated HREs expected within two years.
The initial flowsheet includes separated Samarium, Gadolinium, Dysprosium, Terbium, Yttrium and Lutetium. Investment in further flowsheet enhancements to produce additional HRE products, in particular Europium, Holmium, Ytterbium and Erbium, will be considered based on commercial agreements that provide an appropriate return on the additional investment.