(Bloomberg) – Linus Rare Earth Co., Ltd., the largest key material manufacturer outside of China, has stated that if its Malaysian factory closes indefinitely, it will need to find ways to address capacity losses.
In February of this year, Malaysia rejected Rio Tinto’s request to continue operating its Kuantan factory after mid-2026 on environmental grounds, claiming that the factory produced radioactive waste, which dealt a blow to Rio Tinto.
If we cannot change the conditions attached to the current license in Malaysia, then we will have to close the factory for a period of time, “said Amanda Lacaze, CEO of the company, in an interview with Bloomberg TV on Wednesday
This Australian listed company that mines and processes rare earths is increasing investment in its overseas and Australian facilities, and its Kalgoorlie factory is expected to increase production “at an appropriate time,” Lacaze said. She did not specify whether Lynas would need to consider expanding other projects or acquiring additional production capacity if Guandan were to close.
Rare earths are crucial in the aerospace and defense industries for their use in electronic products and renewable energy. China dominates the mining and production of rare earths, although the United States and Australia, which have large reserves of rare earths, are attempting to weaken China’s monopoly in the rare earth market.
China will not easily give up its dominant position in the rare earth industry, “Lakaz said. On the other hand, the market is active, growing, and there is plenty of room for winners
In March this year, Sojitz Corp. and a Japanese government agency agreed to invest an additional AUD 200 million ($133 million) in Lynas to expand its light rare earth production and begin separating heavy rare earth elements to meet demand for rare earth materials.
Linus has a “truly substantial investment plan that will enable us to increase production capacity and output in the coming years to meet market demand,” Lakaz said.
Post time: May-04-2023