Highlights

• JS Link and Lynas Rare Earths sign MoU to create a 3,000-tonne permanent magnet facility in Malaysia
• Partnership aims to diversify global rare earth supply chain and reduce dependence on Chinese production
• Strategic venture targets growing demand for magnets in EVs, wind turbines, and high-tech industries

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Company: JS Link (opens in a new tab) (Korean Permanent Magnet Manufacturer)

Partnership: Memorandum of Understanding with Lynas Rare Earths to build a permanent magnet plant in Malaysia

Overview & Strategic Fit

On July 24, 2025, Lynas Rare Earths (opens in a new tab) (ASX: LYC) signed an MoU with JS Link to jointly develop a 3,000-tonne NdFeB permanent magnet manufacturing facility in Kuantan, Malaysia—adjacent to Lynas’s advanced materials plant (LAMP). This initiative marks a notable stride toward vertical integration, bridging Lynas's light and heavy rare-earth oxide outputs with downstream magnet production.

Competitive Context & Market Trends

• Lynas recorded stellar Q4 FY25 results, with NdPr oxide production surging 38% to 2,080 t, and total rare-earth oxide output hitting 3,212 t, yielding A$170.2 million in revenue (average price A$60.20/kg).
• The collaboration with JS Link leverages this momentum by tapping into the ever-growing demand for NdFeB magnets in EVs, wind turbines, and high-tech industries across North America, Europe, and Asia.
• Strategically, the plant aligns with Western countries’ efforts to break China’s downstream dominance—a shift accelerated by recent U.S. defense investments and export control reforms.

Supply Chain Resilience & Geopolitical Leverage

• The MoU extends global rare-earth diversification, forging a non-Chinese supply chain from extraction to magnet manufacturing.
• With China controlling 85–95% of global separation and processing, innovations elsewhere are critical to reducing geopolitical vulnerability.
• Moves like the recent U.S. $400 million DoD investment in MP Materials and the resulting price floor signal a broader geopolitical realignment supported by this new magnet hub.

Technical & Production Advantages

• By leveraging JS Link’s manufacturing expertise and Lynas’s upstream oxide production, the MoU envisages a fully integrated NdFeB value chain in Malaysia.
• The proximity to LAMP and existing heavy minority oxide production (like Dy and Tb in mid-2025) positions the venture for efficient magnet production.

Rare Earth Exchanges Analysis: What to Watch

1. MoU Finalization: Will the terms be binding? Capital structure, technology licensing, and offtake agreements are key variables.
2. Regulatory & Environmental: Malaysia’s regulatory stance, especially given radioactive byproducts from LAMP, could impact the pace.
3. Global Demand Response: As NdFeB magnet demand spikes post-2025, will this plant scale fast enough? Lynas’ Q4 production metrics signal readiness.
4. Geopolitical Upside: This venture directly aligns with Western strategies to diversify away from China, potentially attracting government support and offtake advantages.

Outlook

The JS Link–Lynas magnet plant represents a pivotal expansion from upstream to downstream in a critical sector. If executed, it offers a blueprint for replicable, non-Chinese rare-earth magnet supply chains in Asia. Next steps—finalizing agreements, securing capital, and ramping production—will be decisive. JS Link is emerging as a strategic developer in the global magnet economy, anchored by a powerful partnership with Lynas.