KUANTAN: Lynas Rare Earths Ltd and the Kelantan state government’s investment arm, Menteri Besar Incorporated (MB Inc), have signed a memorandum of understanding (MoU) for the supply of mixed rare earths carbonate (MREC).
In a statement today, Lynas said the MoU is non-binding and remains subject to the negotiation and finalisation of definitive agreements.
It said the memorandum outlines a framework for both parties to strengthen, promote and develop cooperation to advance the Malaysian rare earths industry in Kelantan.
"It also provides a basis for MB Inc and Lynas to negotiate a definitive agreement for the supply of MREC feedstock to the Lynas Malaysia Advanced Materials Plant in Kuantan once the project commences production,” it added.
Lynas Rare Earths chief executive officer and managing director Amanda Lacaze said Malaysia is already recognised as a rare earths centre of excellence through Lynas’ operations, and the MoU marks a significant step towards developing locally sourced and separated rare earth products.
"Lynas is delighted to sign this MoU with the Kelantan state government’s MB Inc. This is a significant step for Lynas and the Malaysian rare earths industry, bringing together Lynas Malaysia’s over a decade of rare earths industry expertise and Kelantan state’s rare earth resources,” she said.
Lacaze noted that Malaysia’s ionic clay deposits have strong potential as future feedstock for Lynas Malaysia, particularly due to the high concentration of heavy rare earths, which are in demand for advanced technologies such as electric vehicles and electronics.
"We look forward to working closely with MB Inc to ensure that the MREC produced meets the high environmental and technical standards required by Lynas and our customers across Malaysian and global manufacturing supply chains,” she added. - Bernama
