Lynas Rare Earths has entered into a long-term partnership with JS Link to develop a rare earth permanent magnet factory in Kuantan, Malaysia.
The agreement comes after the companies signed a memorandum of understanding in July 2025.
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The arrangement will see JS Link build a magnet factory in Kuantan with an operating capacity of 3,000 tonnes per annum (tpa) of neodymium iron boron (NdFeB) permanent sintered magnets.
Lynas has committed to around A$50m ($34.7m) in ordinary equity investment in JS Link to help fund the Malaysian facility’s construction.
As part of the exclusive supply arrangement, Lynas will provide rare earth materials for JS Link’s existing magnet factory in Yesan, South Korea, and the new facility planned in Malaysia.
This agreement will be in place until January 2038, with materials supplied at commercial prices.
Lynas interim CEO Pol Le Roux said: “This partnership brings together Lynas’ rare earths processing expertise with JS Link’s magnet manufacturing capability to create a new manufacturing industry in Malaysia.
“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.”
JS Link has already secured a site for the Kuantan factory close to the Lynas Malaysia advanced materials plant.
The new facility is expected to create up to 400 jobs in the country.
Production from the factory will focus on supplying magnets for the automotive, wind energy and electronics sectors in markets such as Korea and Malaysia.
JS Link CEO Jun Lee said: “This partnership with Lynas, which is the most credible and trusted RE [rare earth] supplier in the Western world, will assist JS Link to create a stable and optimal permanent magnet value chain.
“Through this partnership, I am very pleased that JS Link will be able to contribute to a resilient rare earth supply chain. JS Link, through this partnership with Lynas, is pleased to be making a positive contribution to the economies of Malaysia, Australia and Korea.”
In March this year, Lynas signed a framework agreement with LS Eco Energy, a subsidiary of LS Cable & System, to form a partnership for producing rare earth metals.
