AUS
NZ
UK
CA
USA
IND
_06_23_2026_01_10_25_894301.jpg)
Highlights:
Lynas Rare Earths (ASX:LYC) initiates dysprosium oxide production at Malaysia plant
First commercial heavy rare earths output outside China, with terbium next
Supplies feeding demand in Japan, the US, and Europe for electric vehicle and wind energy components
Lynas Rare Earths Ltd (ASX:LYC), a constituent of the ASX 200 index, has advanced the rare earths sector with the successful production of dysprosium oxide at its Malaysian facility. This achievement marks the first commercial output of separated heavy rare earths products outside of China, positioning Lynas at the forefront of global supply diversification. The company’s entry into the heavy rare earths space comes amid growing demand for critical minerals essential to clean energy and advanced manufacturing.
Malaysia Plant Commissioned for Heavy Rare Earth Processing
Located in Malaysia and operational since over a decade ago, Lynas’ processing plant has now completed the commissioning of its heavy rare earth separation circuit. The new facility has commenced the production of dysprosium oxide, a strategic mineral used in permanent magnets that power electric vehicle motors and wind turbines. The site processes concentrate sourced from the company’s Mt Weld deposit in Western Australia, along with mixed rare earth carbonate.
The next milestone in the production schedule is the output of terbium, which is anticipated to follow dysprosium in the near term. These developments come as global interest intensifies in securing non-Chinese sources of these essential inputs.
Export Controls and Supply Chain Realignment
Dysprosium is one of several rare earths placed under export restrictions by China earlier in the year. China currently dominates global dysprosium production and refining capacity. In light of geopolitical shifts and trade restrictions, Lynas’ new output is seen as a critical component of efforts to rebuild and restructure global rare earths supply chains.
With rare earths like terbium and scandium also under similar restrictions, the commissioning of independent production lines by Lynas contributes to increased supply security for international industries reliant on these inputs.
Global Engagement and Market Demand
Lynas has reported active engagement with customers across Japan, the United States, and Europe for the supply of heavy rare earths. These discussions underscore the pressing need among global manufacturers for secure, diversified sources of key materials used in clean technology applications.
The company has indicated that pricing for these newly separated products is expected to align with the current market environment, which reflects limited availability outside of China. This comes at a time when technological advancements and electrification trends are driving demand across multiple sectors.
Lynas Strengthens Position in Global Rare Earths Market
By being the only commercial producer of separated heavy rare earths outside of China, Lynas reinforces its strategic relevance in the global mineral landscape. Its Malaysia facility, which has been a long-standing supplier of light rare earths, now contributes to the more specialized segment of heavy rare earths, enhancing the company’s product portfolio and market coverage.
The new capability positions Lynas to play a key role in the realignment of critical mineral supply routes, particularly as governments and manufacturers seek alternatives to China-centric supply networks. Through its continued development of advanced processing infrastructure and engagement with international partners, Lynas supports efforts to ensure supply continuity in emerging energy and industrial technologies.
