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Highlights
Lynas Rare Earths confirms first production of terbium oxide at its Malaysia facility
Combined output of terbium and dysprosium expands supply for permanent magnet industries
Feedstock sourced from Mt Weld; processing continues through Kalgoorlie and Malaysia
Lynas Rare Earths (ASX:LYC), a constituent of the ASX 200 and All Ordinaries, has reached a new milestone with the successful production of terbium oxide at its Malaysian advanced materials plant. This achievement comes shortly after the company produced its first batch of dysprosium oxide, enhancing its capability to support global supply chains for magnetic technologies.
The production of these critical heavy rare earth elements is integral to the functionality of rare earth permanent magnets, which are widely used in electric motors, wind turbines, and defence applications.
Key Materials for Magnetic Technology Now Operational
Terbium and dysprosium are both essential components in the composition of neodymium-iron-boron magnets. These magnets are favoured for their strong magnetic properties and performance in high-temperature environments. The production of these separated oxides enables Lynas to directly supply advanced materials for the global electrification and automation sectors.
According to Lynas, both terbium and dysprosium are being extracted from concentrate sourced from its Mt Weld rare earths deposit in Western Australia, one of the largest known deposits of its kind. The facility in Malaysia, which has now demonstrated its capability to produce both heavy rare earth oxides, is central to the company's downstream operations.
Feedstock Pipeline Anchored by Mt Weld and Kalgoorlie
Feedstock for the Malaysian operations is supplied through the company’s Kalgoorlie rare earths processing plant. The Kalgoorlie facility refines the Mt Weld ore into mixed rare earth carbonate (MREC), which is then shipped for further processing. The inaugural MREC shipment was completed during the June quarter of the previous financial year, marking the activation of Lynas' integrated processing strategy.
With Kalgoorlie and Malaysia operating in tandem, Lynas aims to scale production to meet growing demand from industries transitioning to low-carbon technologies. This vertically integrated model reinforces the company’s position as a key supplier of both light and heavy rare earths outside of China.
Strategic Value in Diverse Rare Earth Supply Chains
CEO Amanda Lacaze emphasised the importance of diversified rare earth supply chains, noting that the production of terbium and dysprosium directly supports manufacturers aiming to improve resilience in sourcing critical minerals. Discussions are ongoing with customers for commercial supply agreements involving these materials.
Applications for terbium extend beyond magnets, including use in fluorescent lighting and medical imaging technologies. Its ability to reduce exposure time in x-ray imaging is especially valuable in healthcare, while its electrical and metallurgical properties continue to drive demand in electronics manufacturing.
By enabling the local production of advanced materials, Lynas contributes to downstream rare earth processing capacity aligned with national and international supply chain goals. The ongoing output from Malaysia positions the company to play a strategic role in future-facing sectors dependent on secure and ethical mineral sourcing.
