By Rhiannon Hoyle

Lynas Rare Earths said it has produced the first samarium oxide at its Malaysia processing plant ahead of schedule, becoming the only producer outside of China of the heavy rare earth needed for magnets for defense technologies, such as F-35 jet fighters.

The Australian company had been targeting first production of samarium in April, after announcing plans last October to separate more heavy rare earths to meet demand from buyers looking to source the critical minerals from outside of China.

The milestone follows a preliminary agreement with the Pentagon on a four-year, US$96 million rare-earths supply deal announced by the company on Monday.

Lynas has been producing so-called light rare earths--including neodymium and praseodymium--in Malaysia for more than a decade. Recently, it has been seeking to loosen China's stranglehold on the world's heavy rare earths after geopolitical tensions sparked a race to build out non-Chinese supply of the minerals.

Last year, Lynas produced the first dysprosium and terbium available commercially outside of China in decades. Dysprosium and terbium are added to magnets to help them maintain their strength and efficiency at higher temperatures.

In announcing plans to further expand its range of heavy rare earths, the miner described samarium as a priority product. Samarium is highly sought after by customers for high-performance magnets used in electronics and aerospace as well as optical, catalyst and medical applications, Lynas said.

The U.S. Geological Survey last year highlighted samarium as the mineral commodity most at risk of supply disruptions that could hurt the U.S. economy.

"The achievement of first samarium oxide, on spec and ahead of schedule, is a significant milestone for Lynas and demonstrates the expertise and capability of our inhouse team which is unique outside China," said Chief Executive Amanda Lacaze.

Lynas intends to progressively add processing capacity, and an initial suite of heavy rare earths that includes gadolinium, yttrium and lutetium is expected to be available within two years.

Lynas will consider producing other rare earths later if it can secure buyers willing to pay enough to warrant the investment. It highlighted production of europium, holmium, ytterbium and erbium as possible options.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

March 18, 2026 19:03 ET (23:03 GMT)

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