01 / Overview
Lynas Rare Earths
Expansion Analysis
ASX: LYC
Kuantan, Malaysia
April 2026
Lynas Rare Earths is aggressively expanding its Malaysian operations, having achieved commercial production of three heavy rare earth oxides and announcing a new HRE separation facility.
3
Heavy RE oxides in commercial production
AU$180m
New HRE facility investment
10 yrs
Malaysian licence extended to 2036
Lynas is the only producer of both light and heavy rare earth oxides outside China
Sources: Reuters, Lynas ASX announcements, Malaysian Ministry of Science · Analysis as at April 2026
02 / Expansion Plan
New Heavy Rare Earth
Separation Facility
Announced 29 October 2025. Location: LAMP site, Gebeng Industrial Estate, Pahang
Investment
~AU$180m (approx. RM500m)
Annual capacity
Up to 5,000 tonnes HRE feed
Funding
AU$750m equity raise, Sept 2025
Initial target
Samarium (Sm) oxide production
Full separation
Target within 2 years
Initial product suite: Sm · Gd · Dy · Tb · Y · Lu. Subject to commercial contracts: Eu · Ho · Yb · Er
Build schedule "subject to regulatory approvals" — new facility still requires Malaysian DOE Environmental Impact Assessment clearance
03 / Production
Three Heavy RE
Milestones Achieved
The only commercial producer of heavy rare earth oxides outside China
May 2025 — First production
Dysprosium (Dy) oxide — critical for EV traction motor magnets
June 2025 — Production commenced
Terbium (Tb) oxide — high-performance magnet additive
March 2026 — Ahead of schedule (orig. April)
Samarium (Sm) oxide — core material for SmCo permanent magnets
COO Pol Le Roux (Reuters, April 2026): detailed engineering for the full HRE facility is under way, targeting complete separation capability "by the end of next year"
04 / Licence
Malaysia Grants
10-Year Licence Extension
3 March 2026: the Atomic Energy Licensing Board (AELB) formally approved a 10-year extension, valid to 2 March 2036
Granting authority
Atomic Energy Licensing Board (AELB)
Duration
10 years (to March 2036)
Extension count
Second extension (first: 2023)
Announced by
Minister Chang Lih Kang
Extension carries significantly stricter environmental conditions than previous licences, including a non-negotiable 2031 waste deadline
Malaysia is now the largest rare earth separation producer outside China — the extension carries high strategic significance for regional supply chains
05 / Conditions
Six Strict
Licence Conditions
①
Waste generation deadline: All radioactive Water Leach Purification (WLP) waste production in Malaysia must cease by 2 March 2031
②
Waste treatment obligation: WLP waste generated 2026–2031 must be reduced to below 1 Bq/g via thorium extraction or other approved methods
③
No new permanent disposal: Construction of any new radioactive Permanent Disposal Facility (PDF) is prohibited
④
Facility upgrade plan: Lynas must submit an LAMP upgrade plan to authorities by 3 June 2026
⑤
Physical construction start: Facility remediation works must commence by 3 March 2028
⑥
R&D levy: 1% of annual revenue to be invested annually in Malaysian rare earth industry R&D
06 / EIA Risks
Four Key
EIA Challenges
The new HRE facility must still clear a full Malaysian Department of Environment (DOE) Environmental Impact Assessment:
Process complexity
HRE separation involves intricate chemical processing; Malaysian regulators have significantly tightened scrutiny in recent years
Radioactive waste disposal
Waste streams containing naturally occurring Thorium (Th) and Uranium (U) require specialist, compliant disposal arrangements
Multi-agency approval
EIA involves multiple government bodies; comprehensive environmental monitoring plans must be submitted, adding significant lead time
Civil society opposition
"Save Malaysia Stop Lynas" has previously challenged EIAs in court; future reviews likely to face heightened public scrutiny
Approval delays would directly impact construction timelines and overall expansion costs
07 / Stakeholders
Three-Way
Stakeholder Positions
Lynas Rare Earths
CEO Amanda Lacaze: must "seize the opportunity as the market evolves rapidly." Long-term supply agreement with JARE (Japan) to 2038, up to 7,200 t/yr, 75% of HRE output priority-reserved for Japan. US DoD letter of intent for ~USD$96m of rare earth oxide procurement.
Malaysian Government
Anwar administration adopts a pragmatic stance — supporting continued operations under strict conditions. Minister Chang emphasised the 2031 waste deadline is a "non-negotiable bottom line." Malaysia is now China's largest ex-China rare earth separation rival.
Environmental Groups
Greenpeace Malaysia expressed deep concern over the 10-year extension, noting accumulated radioactive waste will remain on Malaysian soil for decades. Demands include mandatory independent third-party scientific oversight, real-time public environmental data, and legally binding compliance standards.
08 / Supply Chain
Global Rare Earth
Supply Context
China's 2025 rare earth export controls significantly elevated Lynas's strategic importance
Estimated global rare earth market share
Strategic partnerships
Core partner in US, Japanese, and Australian supply chain de-risking efforts; US DoD procurement and Japan JARE long-term agreement in place
Malaysian rare earth reserves
~16.1m tonnes covering all 17 rare earth elements, though Malaysia still lacks core mining and processing technology
Lynas is the sole ex-China producer of both LRE and HRE oxides — a unique strategic position
09 / Timeline
Key Milestone
Timeline
| Date | Event |
|---|
| May 2025 | First commercial production of Dysprosium (Dy) oxide |
| Jun 2025 | Commercial production of Terbium (Tb) oxide begins |
| Aug 2025 | AU$825m equity raise announced to fund expansion |
| Oct 2025 | New HRE separation facility announced (AU$180m investment) |
| 3 Mar 2026 | Malaysia grants 10-year operating licence extension (to 2036) |
| Mid-Mar 2026 | Samarium (Sm) oxide — ahead-of-schedule first production |
| Early Apr 2026 | Further HRE product portfolio expansion announced |
| ▶ 3 Jun 2026 | Deadline: LAMP facility upgrade plan submitted to authorities |
| Mar 2028 | Physical facility remediation works must commence |
| Mar 2031 | Hard deadline: all radioactive waste generation must cease |
| Mar 2036 | Current licence expires — full regulatory review |
Orange denotes the imminent compliance deadline requiring immediate action