Lynas Rare Earths has entered a memorandum of understanding (MOU) with Menteri Besar (MB), the investment arm of the Kelantan State Government in Malaysia, for the supply of mixed rare earths carbonate.
This non-binding agreement sets the stage for further negotiations and is pivotal for the development of the rare earths industry in the State of Kelantan.
The collaboration aims to bolster the growth of Malaysia’s rare earths sector, with a focus on the State of Kelantan.
The MOU outlines a mutual commitment to establish a definitive supply agreement for mixed rare earths carbonate feedstock, which will be directed to Lynas’ advanced materials plant in Kuantan upon the commencement of the project’s production phase.
Lynas Rare Earths CEO and managing director Amanda Lacaze said: “Lynas is delighted to sign this MOU with the Kelantan State Government’s MB. This is a significant step for Lynas and the Malaysian rare earths industry, bringing together Lynas Malaysia’s over a decade of rare earths industry expertise, and Kelantan State’s rare earth resources.
“Through Lynas, Malaysia is recognised as a rare earths centre of excellence. This MOU will see us work with MB Inc. to develop Malaysia’s locally sourced and separated rare earth products.
“Malaysia’s ionic clay deposits have excellent potential as future feedstocks for Lynas Malaysia, particularly given their high proportion of Heavy Rare Earths, which are in demand for future facing technologies including electric vehicles and electronics.”
Lynas Rare Earths has also begun the production of dysprosium oxide at its Malaysian facility. This milestone establishes Lynas as the inaugural commercial-scale producer of heavy rare earth products outside of China.
The company’s new heavy rare earth separation circuit in Malaysia was successfully commissioned during the March quarter.
According to Lynas’ March 2025 quarterly report, the production of dysprosium began in May, with terbium production expected to follow in June.
