Wedoany.com Report-Jun 3, Lynas Rare Earths has signed a non-binding memorandum of understanding (MOU) with Menteri Besar (MB), the investment arm of the Kelantan State Government in Malaysia, to supply mixed rare earths carbonate. This agreement, announced in May 2025, paves the way for further negotiations to support the development of the rare earths industry in Kelantan.

The MOU outlines a mutual commitment to establish a definitive supply agreement for mixed rare earths carbonate feedstock.

The collaboration aims to strengthen Malaysia’s rare earths sector, particularly in Kelantan, by establishing a supply agreement for mixed rare earths carbonate feedstock. This material will be processed at Lynas’ advanced materials plant in Kuantan once production begins.

Amanda Lacaze, CEO and managing director of Lynas Rare Earths, stated: “Lynas is delighted to sign this MOU with the Kelantan State Government’s MB. This is a significant step for Lynas and the Malaysian rare earths industry, bringing together Lynas Malaysia’s over a decade of rare earths industry expertise, and Kelantan State’s rare earth resources. Through Lynas, Malaysia is recognised as a rare earths centre of excellence. This MOU will see us work with MB Inc. to develop Malaysia’s locally sourced and separated rare earth products. Malaysia’s ionic clay deposits have excellent potential as future feedstocks for Lynas Malaysia, particularly given their high proportion of Heavy Rare Earths, which are in demand for future facing technologies including electric vehicles and electronics.”

Lynas has also achieved a milestone by starting production of dysprosium oxide at its Malaysian facility in May 2025, making it the first commercial-scale producer of heavy rare earth products outside China. The company’s new heavy rare earth separation circuit was commissioned in the March 2025 quarter, with terbium production expected to begin in June 2025, as noted in Lynas’ quarterly report.

The MOU and production advancements highlight Lynas’ role in enhancing Malaysia’s rare earths industry, leveraging local resources to meet global demand for materials critical to technologies like electric vehicles and electronics.