Lynas Rare Earths Ltd (ASX:LYC, OTC:LYSCF) has deepened its push into the global rare earth magnet supply chain, signing a long-term partnership with South Korea’s JS Link to support the development of a new magnet manufacturing plant in Kuantan, Malaysia.
The deal builds on a memorandum of understanding signed in July 2025 and could provide a significant downstream growth avenue for Lynas, given the exclusive nature of the supply arrangement and the long contract period through to 2038.
Lynas will invest $50 million in JS Link equity to help fund construction of the Malaysian factory, while also supplying rare earth materials to JS Link’s existing Korean facility and the new Kuantan plant.
Long-term demand channel
The proposed Kuantan facility will produce up to 3,000 tonnes a year of permanent magnets used in electric vehicles, wind turbines, electronics and other high-growth technology markets.
The project is expected to create up to 400 jobs and would add another non-China processing and manufacturing link to the rare earths supply chain.
Lynas has not disclosed how much rare earth material it expects to supply to the Korean and Malaysian factories, but the exclusive long-term deal could be viewed positively by investors as a clearer pathway into magnet-related demand.
Interim chief executive officer Pol Le Roux said the partnership “delivers on our Towards 2030 growth objective of expanding into the outside China metal and magnet supply chain.”