6 days ago
- Business
- New Straits Times
Lynas, Kelantan ink MoU to develop rare earths supply chain
KUALA LUMPUR: Lynas Rare Earths Ltd has entered into an agreement with the Kelantan state government for the supply of mixed rare earths carbonate (MREC).
In a statement today, Lynas said the memorandum of understanding (MoU) with Menteri Besar Inc, the investment arm of the Kelantan state government, is non-binding and subject to the negotiation of definitive agreements.
Under the MoU, Lynas and Menteri Besar Inc jointly seek to strengthen, promote and develop co-operation for the growth of the Malaysian rare earths industry in the state of Kelantan.
It also provides a framework for Menteri Besar Inc and Lynas to negotiate a definitive agreement for the supply MREC feedstock to the Lynas Malaysia advanced materials plant in Kuantan once the project commences production.
Lynas Rare Earths chief executive officer and managing director Amanda Lacaze said 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 added that through Lynas, Malaysia is recognised as a rare earths centre of excellence.
"This MoU will see us work with Menteri Besar Inc to develop Malaysia's locally sourced and separated rare earth products.
"Malaysia's ionic clay deposits have excellent potential as future feedstocks for Lynas Malaysia, particularly given their high proportion of heavy rare earths which are in demand for future facing technologies including electric vehicles and electronics.
"We look forward to working with MB Inc. to ensure that the MREC it produces meets the high environmental and technical standards required by Lynas and our customers in Malaysian and global manufacturing supply chains," she noted.
