Lynas Becomes First Heavy Rare Earths Producer Outside China

Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF) said on May 16 that it has produced dysprosium oxide (Dy) at its facility in Malaysia, becoming the first commercial heavy rare earths producer outside of China.

Called Lynas Malaysia, the plant commenced production in 2012 and is located in the Gebeng Industrial Estate near the Port of Kuantan. Its heavy rare earths separation circuit was commissioned in the March quarter.

"The production of this on spec Dy is a significant step for supply chain resilience and provides customers with the option of sourcing product from an outside China supplier," said Lynas CEO and Managing Director Amanda Lacaze.

"Lynas is now the world’s only commercial producer of separated Heavy Rare Earth products outside China," she continued, adding that this distinction uniquely positions the company to help diversify heavy rare earths supply.

Lacaze noted that currently the company is engaged with customers in Japan, the US and Europe.

Dysprosium oxide is produced at Lynas' plant in Malaysia. Video via Lynas TV.

The plant's first dysprosium was produced on schedule, and first terbium output is expected in June.

The company said in its latest quarterly report that pricing for its new heavy rare earths products is expected to reflect high demand for these products outside China, and not the market index based on transactions in China.

Lynas also said it is expecting rare earths market volatility to continue through the June quarter as a result of the new global tariff environment and Chinese export controls. China placed export controls on seven rare earths on April 4, and although the country lifted some restrictions last week, it will reportedly continue to block exports of those elements.

In addition to its Malaysian rare earths processing facility, Lynas has a rare earths processing facility in Kalgoorlie, Western Australia, and is building a new rare earths processing facility in Texas, US.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.