Lynas Rare Earths (ASX:LYC) has announced a $50 million investment in South Korean magnet manufacturer JS Link (KOSDAQ:127120) to establish a permanent magnet factory in Malaysia.
The partnership agreement follows a memorandum of understanding signed between the companies in July 2025. JS Link will establish the factory in Kuantan, Malaysia, near Lynas’ existing advanced materials plant with an operating capacity of 3,000 tonnes per annum of neodymium iron boron sintered magnets.
Under the long-term agreement, Lynas will supply rare earth materials to JS Link’s existing magnet factory in Yesan, South Korea, and the planned Malaysian facility at commercial prices under an exclusive supply arrangement until January 2038.
Lynas’ $50 million equity investment represents approximately 4.58% of JS Link on a fully diluted basis. The shares will be subject to a three-year escrow period.
JS Link has secured a site for the magnet factory near Lynas’ Kuantan facility. The factory is expected to create up to 400 new jobs in Malaysia and supply automotive, wind energy, and electronics manufacturing sectors across Korea, Malaysia, and other key markets.
Lynas Interim CEO Pol Le Roux says the partnership combines the company’s rare earths processing expertise with JS Link’s magnet manufacturing capability to contribute to the manufacturing industry in Malaysia.
“This is an exciting project for the development of a sustainable rare earths industry in Malaysia and delivers on our Towards 2030 growth objective of expanding into the outside China metal and magnet supply chain,” Le Roux says.
“This partnership with Lynas, which is the most credible and trusted rare earths supplier in the Western world, will assist JS Link to create a stable and optimal permanent magnet value chain,” JS Link CEO Jun Y Lee says.
“Through this partnership with Lynas, JS Link is pleased to be making a positive contribution to the economies of Malaysia, Australia and Korea,” Lee adds.
JS Link is headquartered in Seoul, South Korea, and operates a magnet division focused on rare earth magnet manufacturing. Its 1,000-tonne-capacity magnet factory is distributing samples to customers worldwide ahead of commercial production.
Write to France Pinzon at Mining.com.au
Images: Lynas Rare Earths
