Lynas Begins First Heavy Rare Earths Production Outside China, Strengthens Global Supply Chain

Lynas Produces First Heavy Rare Earths Outside China at Malaysian Facility

Lynas Rare Earths Ltd has achieved its first production of Dysprosium Oxide (Dy) at its Lynas Malaysia plant, marking a major milestone.

The company confirmed this in its March 2025 Quarterly Report, where it first outlined plans for Heavy Rare Earth (HRE) separation. Following successful commissioning, Dysprosium production began in May as planned. Terbium output is expected to follow in June.

According to Lynas CEO Amanda Lacaze, this production step increases supply chain resilience. She emphasized that Lynas is now the only commercial producer of separated Heavy Rare Earths outside China. This provides manufacturers with a non-China source amid rising geopolitical and strategic pressures.

Lynas Targets Global Customers Seeking Rare Earth Supply Security

Lynas sees this development as key to rebuilding diversified supply chains for critical minerals. Lacaze noted active discussions with customers in Japan, the U.S., and Europe. These markets seek reliable sources of rare earths critical for defense, green energy, and high-tech sectors.

Lynas expects pricing for Dy and Tb to reflect strong demand and limited global supply. As China continues to dominate rare earth exports, outside production is critical. This positions Lynas at the center of a potential long-term market restructure.

Lacaze credited the company’s technical team for successfully developing the Heavy Rare Earth separation circuit. She called the first Dy output a proud achievement that reflects Lynas’ unique expertise in the global rare earth industry.

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