Lynas Rare Earths (ASX:LYC) has signed a memorandum of understanding (MoU) with Korean manufacturer JS Link (KOSDAQ:127120) to develop a sustainable rare earth permanent magnet value chain in Malaysia. The non-binding MoU will see both companies collaborate on a 3,000-tonne capacity neodymium-iron-boron permanent sintered magnet manufacturing facility near Lynas’ advanced materials plant in Kuantan, Malaysia. Lynas will supply both light and heavy rare earth materials to JS Link to support the magnet production.
Rare earth permanent sintered magnets are made by pressing and sintering powdered metal alloys, followed by magnetisation. These magnets are valued for their high energy density and strong magnetic fields, making them crucial in applications like electric motors, wind turbines, and electronics. According to Lynas CEO Amanda Lacaze, manufacturers are actively seeking new suppliers to meet the growing demand for permanent magnets.
Lynas Rare Earths is a rare earth producer that wholly owns the Mt Weld Mine in Western Australia. It also operates a large rare earth processing plant in Malaysia, producing high-quality separated rare earth materials for export to manufacturing markets in Asia, Europe, and the US. JS Link, headquartered in Seoul, South Korea, focuses on rare earth permanent magnet manufacturing through its magnet division. The company is currently constructing a permanent magnet factory in Korea, with production slated to begin in 2025.
Lacaze said that Lynas is an established supplier of rare earth materials and looks forward to working with JS Link to develop a new industry in Malaysia.
