Lynas Rare Earths Builds Critical Supply Chain Outside China

Lynas Rare Earths advances Malaysian plant to become a major non-Chinese supplier of heavy rare earths, crucial for EVs and defense, amid surging share price.

The global race to secure non-Chinese sources of critical minerals is intensifying, and Lynas Rare Earths is rapidly expanding its capabilities at a pivotal moment. With China tightening export controls on rare earth elements since April 2025, the Australian company is advancing its Malaysian processing facility to become a fully independent supplier of heavy rare earths, a move the market has rewarded with a share price surge exceeding 200% over the past year.

At the heart of this expansion is the Gebeng plant in Malaysia. Operations manager Pol Le Roux confirmed the site has already begun extracting specific heavy rare earths ahead of schedule. Dysprosium production commenced in May of last year, followed by Terbium in June. Most recently, the first production of separated samarium oxide was achieved by March 19, 2026. The company is now planning a complete separation suite for all heavy rare earths, with completion targeted for the end of 2025. This positions Malaysia to become the most significant commercial producer of separated rare earths outside of China.

Lynas currently supplies approximately ten percent of the global market for separated rare earths, with the remainder controlled by China. Its strategic "Towards 2030" plan aims to deepen this foothold by adding Gadolinium, Yttrium, and Lutetium to its product portfolio within the next two years. These elements are indispensable for the high-performance magnets used in electric vehicles, wind turbines, aerospace, defense, and electronics, sectors increasingly desperate for supply chain diversification.

The company's strategy extends beyond mere processing. CEO Amanda Lacaze has outlined a partnership-driven approach to move further down the value chain. "We will not simply wake up tomorrow and be a magnet producer," Lacaze stated, emphasizing collaboration with established manufacturers who possess proven expertise. This downstream integration is designed to embed Lynas more deeply into the global energy transition and defense industries.

Regulatory stability supports this ambitious growth. In March, the Malaysian government renewed Lynas's operating license for the Gebeng plant for a further ten years. While the renewal came with stricter environmental conditions, it provides the long-term certainty required for major capital investment.

This critical phase of expansion coincides with a significant leadership transition. Lacaze, who has led the company for twelve years, will step down at the end of the current financial year. The board is conducting an internal and external search for her successor. The new CEO will inherit a clear strategic roadmap and the task of executing it under the scrutiny of investors, who have pushed the stock to a new 52-week high of 13.22 euros.