Lynas Rare Earths Ltd. has signed a long-term partnership agreement with South Korean manufacturer JS Link for the development of a rare earth permanent magnet factory in Malaysia.
Under the exclusive commercial arrangement, JS Link will establish a magnet factory in Kuantan, Malaysia, with an operating capacity of 3,000 tonne per annum of NdFeB permanent sintered magnets.
Lynas will invest AU$50 million in ordinary equity of JS Link, with the funds used to support the construction of the Malaysian factory.
JS Link has already secured land for the new factory, strategically positioned near Lynas’s existing advanced materials processing plant.
The Kuantan facility is forecast to inject significant economic activity into the local area, creating up to 400 new manufacturing jobs. The high-grade magnets produced across the network are destined for automotive, wind energy, and high-tech electronics manufacturing hubs across South Korea, Malaysia, and other key global markets.
In addition, Lynas will supply key rare earth materials at commercial prices to JS Link’s magnet factory in Yesan, South Korea until January 2038.
Lynas Interim CEO Pol Le Roux said the collaboration combines the Australian company’s refining expertise with JS Link’s downstream capabilities to kickstart a new manufacturing sector in Southeast Asia.
“This is an exciting project for the development of a sustainable rare earths industry in Malaysia and delivers on our Towards 2030 growth objective of expanding into the outside-China metal and magnet supply chain,” Le Roux said.
JS Link CEO Jun Y. Lee welcomed the partnership, describing Lynas as a trusted alternative in the critical minerals sector.
“This partnership with Lynas, which is the most credible and trusted rare earth supplier in the Western world, will assist JS Link to create a stable and optimal permanent magnet value chain,” Lee said.
JS Link has already constructed a 1,000-tonne capacity magnet factory in South Korea.
The facility is currently distributing product samples to global clients as it finalises preparations for mass commercial production.
