KUALA LUMPUR, March 19 — Australia’s Lynas Rare Earths said today it had started producing samarium oxide at its Malaysian plant, bolstering its role as a key alternative to China for supplies of critical minerals.

Samarium oxide, a heavy rare earth used in high-performance magnets in advanced industries such as electronics and aerospace, is being produced at Lynas’s facility in Gebeng, eastern Malaysia.

The plant, which has been running since 2012, supplies materials used in a range of products including electric vehicles, mobile phones and missiles.

Lynas said its first batch of samarium oxide was produced ahead of an April target, adding to its output of dysprosium and terbium last year.

The three elements, known as “heavy rare earth oxides”, have become increasingly sought-after since Beijing restricted exports in 2025.

“The achievement of the first samarium oxide, on spec and ahead of schedule, is a significant milestone for Lynas and demonstrates the expertise and capability of our in-house team, which is unique outside China,” chief executive Amanda Lacaze said in a statement.

She said the addition expands Lynas’s range of light and heavy rare earths used to manufacture high-performance permanent magnets.

Lynas said its expanded processing capacity will be rolled out progressively over the next two years.

The company this month announced a 10-year renewal of its operating licence in Malaysia, under stricter conditions set by the government following environmental concerns.

Malaysia is the largest commercial producer of separated rare earths outside China.

Lynas has previously faced controversy over elevated radiation levels in byproducts linked to its raw material processing methods, prompting questions over whether the licence would be extended.

Under the renewal, Malaysia has required the company to halt within five years all operations producing radioactive waste.

“This ensures there will be no continuous accumulation of radioactive waste in Malaysia,” Science, Technology and Innovation Minister Datuk Chang Lih Kang said.

Existing radioactive waste will be stored in a permanent disposal facility, which is still being built and is set to be finished by the end of the year. — AFP