Australia’s Lynas, South Korea’s JS Link sign deal for Malaysia magnet factory

[KUALA LUMPUR] Lynas rare earths said on Tuesday (Jul 7) it has signed a partnership deal with South Korea’s JS Link to develop a magnet factory in Malaysia.

The Australian rare-earths producer will also supply rare-earth materials to JS Link’s magnet factory in South Korea and the planned factory in Malaysia until January 2038.

The partnership follows a magnet manufacturing deal between the two companies last year. Under the latest deal, JS Link will establish a magnet factory in Kuantan, Malaysia, with an operating capacity of 3,000 tonnes per annum of neodymium-iron-boron (NdFeB) permanent sintered magnets.

Lynas said it will invest around A$50 million (US$34.78 million) in JS Link shares to support the development of the facility. The produced magnets will supply automotive, wind energy and electronics manufacturing supply chains in key markets including Korea and Malaysia, Lynas added. The company expects the Kuantan magnet factory to create up to 400 new jobs.

Meanwhile, Malaysia said on Monday it would review a US$96 million rare-earths supply deal signed earlier this year between Lynas, the operator of one of the world’s largest rare earths processing plants located in the South-east Asian country, and the US Department of Defense.

The four-year deal has faced protests, with some rights groups accusing Lynas of supplying materials for US-made weapons used by Israel in its war against Hamas in Gaza.

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Malaysia has long been supportive of the Palestinian cause and does not have diplomatic ties with Israel. REUTERS