LYNAS Rare Earths Ltd. has started producing samarium - a metal used across advanced industries - at its plant in Malaysia, bolstering the company’s standing as an alternative to China in supplying critical materials.
The first batch of samarium was made ahead of an April target, the Australian firm said in a statement, and adds to production of terbium and dysprosium that started last year. The three materials are known as "heavy” rare earths, and have become highly prized since Beijing restricted their exports last year.
"The addition of samarium oxide means that we can provide an expanded suite of light and heavy rare earths that customers will use to produce high-performance permanent magnets,” Chief Executive Officer Amanda Lacaze said in the statement.
Samarium’s main use is in powerful samarium-cobalt magnets found in everything from high-precision weaponry to advanced medical equipment and electric vehicles. A cutoff of samarium flows posed a bigger risk to the US economy than disruptions in any other single commodity, a United States Geological Survey study concluded last year.
Lynas, one of only two major rare earth miners outside China’s orbit, has revamped a long-term supply deal with its Japanese buyers and signed a four-year, $96 million agreement with the Pentagon for sales of rare earth oxides.
MP Materials Corp., a US producer, expects to commission its separation plant for heavy rare earths in mid-2026 and start production of terbium and dysprosium later year, its executives said on an earnings call last month.
"We think we will be the largest producer of heavy rare earths in the Western hemisphere, from now for as long as you can imagine,” said Chief Operating Officer Michael Rosenthal. - Bloomberg
