Lynas Rare Earths is advancing its downstream capabilities by entering the permanent magnet manufacturing sector through a new partnership with South Korea’s JS Link. The agreement involves Lynas taking a $50 million equity stake in JS Link and supplying separated rare earth feedstock to support the establishment of a magnet production facility near Lynas’s rare earth processing hub in Kuantan, Malaysia.

The move marks Lynas’s first major deal since Amanda Lacaze stepped down as chief executive and managing director last week, concluding 12 years at the company’s helm. Lacaze, credited with revitalizing Lynas from near collapse—when the company’s market capitalization shrank from $3 billion in 2011 to just $3 million—leaves behind a business now valued around $18 billion. She plans for a female successor to take over, though no official appointment has been announced.

The JS Link plant, expected to generate approximately 400 jobs in Malaysia, will focus on producing neodymium-iron-boron (NdFeB) permanent sintered magnets. These magnets are essential components in electric vehicles, wind turbines, robotics, and various electronics. The planned factory in Kuantan aims to produce about 3,000 tonnes annually, contributing to the rapidly growing global demand for NdFeB magnets, which is approaching 150,000 tonnes per year.

This collaboration follows a memorandum of understanding signed between Lynas and JS Link twelve months ago and represents a strategic step towards reducing global reliance on China for rare earth materials. Lynas currently processes rare earths extracted from its Mt Weld mine near Laverton, Western Australia, at the Kuantan facility.

The partnership and its timing come amid ongoing parliamentary scrutiny in Malaysia concerning aspects of Lynas’s supply arrangements, including its dealings related to the US military. The company has not yet disclosed who will serve as Lacaze’s permanent replacement.