Lynas and JS Link Launch Rare Earth Magnet Factory in Malaysia to Boost Global Supply Chains
Australia's Lynas and South Korea's JS Link have agreed to build a new rare earth magnet factory in Kuantan, Malaysia.
The partnership follows a memorandum of understanding from July 2025 and now includes a long-term supply deal.
Supply Chain Diversification Benefits
The factory will produce 3,000 tons per year of NdFeB permanent sintered magnets near Lynas' existing plant.
It is expected to create up to 400 new jobs in the local Malaysian economy.
Lynas will invest about A$50 million for roughly 4.58 percent equity in JS Link to support construction.
The magnets will serve automotive, wind energy, and electronics sectors across Korea, Malaysia, and beyond.
Long-Term Industry Outlook
Lynas will exclusively supply rare earth materials to JS Link factories until January 2038 at commercial prices.
This move helps reduce reliance on single-source suppliers for critical materials used in electric vehicles and renewable energy.
The deal strengthens economic ties among Australia, South Korea, and Malaysia through shared manufacturing expertise.
Everyday consumers may see more stable prices for green technologies as supply chains become more resilient over time.
Industry experts view this as a step toward broader global efforts to expand rare earth processing outside dominant regions.
