en.Wedoany.com Reported - Lynas Rare Earths Ltd (ASX:LYC) is establishing a permanent magnet plant in Malaysia through a $50 million investment in South Korean magnet manufacturer JS Link (KOSDAQ:127120).
The partnership is based on a memorandum of understanding signed in July 2025. JS Link plans to build a factory in Kuantan, Malaysia, adjacent to Lynas's existing advanced materials plant, which has an operational capacity of 3,000 tonnes per year of neodymium-iron-boron sintered magnets.
Under a long-term agreement, Lynas will exclusively supply rare earth materials at commercial prices to JS Link's existing magnet factory in Yesan, South Korea, and the planned Malaysian factory, with the agreement valid until January 2038.
The $50 million equity investment represents approximately 4.58% of JS Link's fully diluted shares, subject to a three-year lock-up period.
JS Link has secured land for the magnet factory adjacent to Lynas's Kuantan plant. The factory is expected to create up to 400 new jobs in Malaysia, with products supplying the automotive, wind energy, and electronics manufacturing industries in South Korea, Malaysia, and other key markets.
Lynas Interim CEO Pol Le Roux stated that the partnership combines the company's rare earth processing expertise with JS Link's magnet manufacturing capabilities, contributing to Malaysia's manufacturing sector. Le Roux noted that this project develops a sustainable rare earth industry in Malaysia and represents the company's practice of expanding the metals and magnets supply chain outside China as part of its "Towards 2030" growth targets.
JS Link CEO Jun Y Lee believes that the collaboration with Lynas will help JS Link build a stable, optimal permanent magnet value chain and make positive contributions to the economies of Malaysia, Australia, and South Korea.
Headquartered in Seoul, South Korea, JS Link operates a magnet division focused on rare earth magnet manufacturing. Its 1,000-tonne capacity magnet factory is distributing samples to global customers in preparation for commercial production.
