Lynas, JS Link sign long-term Kuantan magnet plant deal

PETALING JAYA: Lynas Rare Earths Ltd has entered into a long-term agreement with South Korean biotech firm JS Link Inc for the development of a rare earth permanent magnet factory in Kuantan.

Lynas said it would supply rare earth materials to JS Link’s magnet factory in Yesan and the planned factory in Kuantan at commercial prices under an exclusive supply agreement until January 2028.

It also said that JS Link had secured a site for the rare earth permanent magnet factory near the Lynas Malaysia advanced materials plant in Kuantan.

“The Kuantan magnet factory is expected to create up to 400 new jobs in Malaysia,” Lynas said in a statement.

It also said that magnets produced at the factory are intended to supply automotive, wind energy and electronics manufacturing supply chains in key markets including South Korea and Malaysia.

Lynas Rare Earths interim CEO Pol Le Roux was quoted as saying that this was an exciting project for the development of a sustainable rare earths industry in Malaysia.

“It (also) delivers on our Towards 2030 growth objective of expanding into the outside China metal and magnet supply chain,” he said.

Meanwhile, JS Link CEO Jun Y Lee said the partnership with Lynas would assist his company in creating a stable and optimal permanent magnet value chain.

“JS Link, through this partnership with Lynas, is pleased to be making a positive contribution to the economies of Malaysia, Australia and Korea,” he said.

Lynas said the magnet factory in Kuantan would have an operating capacity of 3000 tonnes per annum of neodymium iron boron permanent sintered magnets.

It said that under the agreement with JS Link, it would make an investment of about A$50 million in ordinary equity of the South Korean firm, with the funds used to support the construction of the Kuantan factory.

In April, Lynas announced plans to expand its portfolio of rare earths extracted in Malaysia, in hopes of bolstering its position as a key alternative supplier to China.