KUALA LUMPUR (July 24): Lynas Rare Earths Ltd said on Thursday it has signed an initial pact with Korean permanent magnet manufacturer JS Link to develop a rare earth permanent magnet production in Malaysia.

Under the memorandum of understanding, Lynas will work with JS Link to develop a facility to manufacture up to 3,000 tonnes of neodymium-iron-boron type of permanent sintered magnet near its advanced materials plant in Kuantan, the Australia-listed company said in a statement. 

The project costs and other details were not disclosed.

Lynas will also supply light and heavy rare earth materials to JS Link, listed on the Korea Exchange, to support production of the magnets, it noted. The pact is non-binding and subject to a definitive agreement.

“Manufacturers around the world are actively seeking new suppliers to meet their growing needs for permanent magnets,” said Lynas chief executive officer and managing director Amanda Lacaze.

The magnets are the strongest type of permanent magnet currently available, used in wind turbines and other devices requiring high torque and power, such as MRI scanners.