An Australian company has achieved a major breakthrough in the global rare earths supply chain, marking the first commercial production of a heavy rare earth element outside China—a move experts call a significant step toward reducing reliance on Beijing.
Lynas Rare Earths announced that it has successfully produced dysprosium oxide at its facility in Malaysia, positioning the company as the only commercial producer of separated heavy rare earths outside China. The firm plans to begin refining a second element, terbium, at the same site next month. Both materials are vital components in permanent magnets used in electric vehicle batteries, wind turbines, and various high-tech devices.
“This is a major milestone,” said Neha Mukherjee, a senior analyst at Benchmark Mineral Intelligence, emphasizing the importance of Lynas’ achievement in the broader context of global supply chain diversification.
Rare earth elements (REEs), a group of 17 metals, are essential to modern technologies, ranging from consumer electronics to military hardware. Among the most critical are neodymium and dysprosium, prized for their role in producing high-strength magnets. While not truly rare in the Earth’s crust, these elements are difficult to extract and purify, particularly heavy rare earths, which are less abundant and often more valuable due to their specialized uses.
China currently dominates the rare earths industry, controlling over 60% of mining and more than 90% of global refining capacity, according to the International Energy Agency. The sector has become increasingly politicized amid ongoing trade tensions between China and the United States.
Lynas’ development comes at a time when rare earth exports are entangled in geopolitical uncertainty. Despite a recent 90-day easing of Chinese export controls, permitting delays and regulatory hurdles continue to disrupt global trade in these critical materials.
“While this is a timely and encouraging development, it underscores the need for continued international efforts to diversify and secure the rare earths supply chain,” Mukherjee noted.
