How will Lynas' samarium oxide production reshape global heavy rare earth supply and pricing?

How will Lynas' samarium oxide production reshape global heavy rare earth supply and pricing?
Lynas has achieved first commercial separation of samarium oxide at its Malaysia plant, ahead of schedule, marking a structural shift in heavy rare earth supply. The company now produces samarium, dysprosium, and terbium outside China, with plans to add gadolinium, lutetium, and yttrium by 2027. Its new 5,000-tonne separation facility targets 1,100 tonnes of samarium annually. Japan's Sojitz will start importing samarium from Lynas in April 2026 for fighter jet magnets and nuclear reactors, with domestic demand around 80 tonnes per year. While China still controls over 90% of global separation capacity, Lynas' expansion—backed by Malaysian 10-year permits and US defense funding—is gradually eroding China's monopoly. Western buyers are increasingly willing to pay premiums for non-Chinese supply chains, though current volumes remain modest relative to global demand.