Lynas Expands Rare Earth Supply Chain With $50 Million JS Link Deal
Synopsis
The investment supports the development of downstream magnet manufacturing in Malaysia, strengthening regional rare earth processing capabilities.
Lynas to invest A$50 million in magnet maker JS Link with deal until 2038 Australian producer of rare earth elements Lynas Rare Earths will invest A$50 million in South Korean magnet manufacturer JS Link in a bid to establish a permanent magnet manufacturing facility in Kuantan, Malaysia.
The investment includes investors' money and a long-term supply agreement, which will keep the pair connected through January 2038. The deal will see Lynas supply JS Link with processed rare earth materials for manufacturing plants in South Korea and in Malaysia.
The Malaysian plant in Kuantan is expected to be capable of producing 3,000 tonnes of neodymium-iron-boron (NdFeB) permanent magnets per year for use in the automotive industry, electronics and renewable energy industries.
It is expected that up to 400 new jobs will be created in Malaysia.
Supply chain diversification remains a priority
The Lynas JS Link rare earths project is the latest step among several moves made by manufacturers and various governments to diversify the supply chains for crucial minerals and magnet production.
China continues to dominate rare earth magnet manufacturing, while Australia's contributions to rare earth materials for advanced manufacturing have been expanding.
Demand for minerals required in clean energy technologies, including the electric vehicle revolution, is soaring, and according to the International Energy Agency’s Global Critical Minerals Outlook 2025, such demand is on track to expand by the same magnitude this year as it did in 2024.
Electric motors, where magnets generate power, rely heavily on rare earth elements, offering increased magnetic strength for lighter, energy efficient use.
Part of Lynas' long-term strategy
The Lynas JS Link rare earths project aligns with the company's Towards 2030 strategy, which includes increasing downstream processing and scale of value added production. Lynas already operates the Mt Weld rare earths mine in Western Australia and one of the world's largest rare earths processing plants outside of China in Kuantan.
In the three months to 30 June 2025, Lynas recorded A$170.2 million in sales revenue as a result of higher production volumes and improved rare earth prices. With the addition of the JS Link project, the company will be able to boost its output of processed rare earths materials while also facilitating magnet production within Malaysia, the company reported.
Further extending the value chain, the Lynas JS Link rare earths project will now encompass the manufacture of permanent magnets alongside the mining and processing of rare earth materials.
The investment will support Australia's efforts to foster more comprehensive supply chains among its producers and provide Asian and North American businesses with a non-Chinese alternative for rare earths and magnets.
Source: Capital Brief
Follow Inspirepreneur Magazine for daily global business news.
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
