KUALA LUMPUR (June 27): Lynas Rare Earths has earmarked A$25 million (RM78.6 million) in capital expenditure (capex) to facilitate Lynas Malaysia's first production of two separated Heavy Rare Earths (HRE) products by 2025.

"The approximately A$25 million capex for this project will be accommodated within the previously disclosed Lynas Malaysia Industrial Plan," according to a statement by Lynas on Thursday.

Lynas said for the first time, a new process will produce separated dysprosium (Dy) and terbium (Tb) at Lynas Malaysia, and will complement Lynas’ existing Light Rare Earths product range. 

It said Dy and Tb are critical for high-performance rare earth magnets in electric vehicles and high-tech applications like micro-capacitors. 

"Currently, Dy, Tb and other HRE oxides from the Mt Weld ore body are sold as a mixed HRE compound known as SEGH1. The reconfiguration of one of Lynas Malaysia’s solvent extraction circuits will facilitate the production of Dy and Tb," Lynas said.

The new circuit is designed to separate up to 1,500 tonnes of SEGH per year. 

Lynas said the front-end engineering design had been completed, while detailed engineering design is under way, with commissioning and ramp-up expected in the middle of 2025.

As a result of the separation of Dy and Tb from the SEGH compound, Lynas’ HRE product range will expand to five products, namely Dy, Tb, unseparated samarium/europium/gadolinium, holmium concentrate, and unseparated SEGH.

At the same time, Lynas is progressing pre-construction activities for its planned US rare earths processing facility. 

Both Lynas Malaysia and the planned US rare earths processing facility are designed to accept third-party feedstock as they come online. 

Lynas chief executive officer and managing director Amanda Lacaze said: “Lynas’ Mt Weld deposit is remarkable for its endowment of HRE minerals as well as Light Rare Earth minerals. This circuit reconfiguration at Lynas Malaysia provides a pathway to accelerate our commitment to processing all of the elements in the Mt Weld ore body."

Lacaze said that Dy and Tb are crucial for high-performance magnets and electronic devices, and expanding its product range will meet customer needs. The initial separation of HRE at Lynas' Malaysian facility, she said, is an exciting milestone towards offering a broader suite of products.