Lynas, Rare Earths and the War Machine

Lynas Rare Earths likes to present itself as a green technology company, as a clean supplier of the minerals the world needs for the energy transition. Sit with the evidence for an hour, as everyone who joined our recent webinar did, and that story falls apart.

What emerges instead is a company kept alive for close to two decades by Japanese state money, subsidised by the Pentagon and the Australian Government, dumping radioactive waste on a Malaysian coastal community, and now sitting inside the supply chain that arms Israel’s genocide in Gaza.

The Lynas Rare Earths: Militarised Extractivism in Action webinar was co-hosted by AidWatch and Yes to Life No to Mining (YLNM). It’s the first in a webinar series which builds on a YLNM position paper published at the end of last year, Militarism is Extraction: From Mines to Missiles which builds on.

AidWatch Chair, Liz Downes opened the webinar and set out why Lynas matters and how deep the Pentagon money runs, before handing over to Shigeru Tanaka, Executive Director, Pacific Asia Resource Center (PARC, Japan), Farwina Faroque, Boycott, Divest and Sanctions (BDS), Malaysia, and AidWatch’s Lee Tan, who has been organising against Lynas since 2011.

Here’s what they told us.

What Lynas actually is

Liz Downes, AidWatch Chair, opened by laying out exactly what Lynas is: an Australian-owned company that mines rare earths at Mount Weld in Western Australia and, since 2012–13, processes them at the Lynas Advanced Materials Plant (LAMP) in Kuantan, Malaysia. A long-promised processing plant at Kalgoorlie remains unreliable at best due to its limited water supply. Lynas moved the hazardous separation stage of production offshore quite deliberately: Australia’s environmental standards were expensive and inconvenient, Malaysia’s were not.

The company took advantage of lower costs and more permissive waste rules to do in Kuantan what it did not want to do at home. The result is millions of tonnes of hazardous waste, including a radioactive stream from the water-leach purification process.

Lynas has spent years pushing Malaysia to accept a permanent radioactive waste dump on flood and fire-prone coastal peatland, a proposal that falls well below international standards for managing low-level radioactive waste. And it matters well beyond Malaysia’s borders, because LAMP is currently the only commercial-scale producer of separated rare earth oxides outside China.

The Pentagon pipeline

Liz then walked us through how a single fact – that Lynas is currently the only ‘game’ outside China, is exactly why the US Department of War (formerly Defense) has poured so much money into the company under both the Biden and Trump administrations. Funding for a heavy rare earth separation plant in Texas has gone nowhere, but the money hasn’t disappeared: it has flowed instead into extracting heavy and light rare earths through the Malaysian plant, backed by a four-year supply agreement guaranteeing the Pentagon a framework for rare earth oxides. In March this year alone, Lynas picked up another US$96 million.

The US still imports more than 70% of its rare earths from China, but it is racing to change that as it prepares for confrontation with China rather than cooperation. Lynas is now the world’s biggest rare earth miner and the only commercial-scale processor outside China, which makes its output “critical” to Washington’s plans. This is not for green technology, but for the expanding military capabilities, producing more deadly weapons for profit, and furnishing war and genocide around the world.

Until 2025, Lynas mostly produced light rare earths like neodymium and praseodymium – elements it could plausibly describe as feeding green technology. Pentagon money is now pushing it to separate dysprosium, terbium and samarium too — elements essential for the durable magnets in high-precision weapons, with yet more to come for production of high-powered lasers, night vision, fighter jet engines, missile guidance, nuclear reactor control systems, radiation shielding and nuclear submarines.

Australia has also funded Lynas through trade agreements – part of its bid to be Washington’s key ally in militarising the Pacific – and Japan’s investment runs deeper still.

Liz traced the same supply chain forward to its disastrous end point: local environmental damage in Kuantan, regional militarisation of the Pacific through military exercises like RIMPAC and a wave of “defence critical minerals” projects, and the involuntary enlistment of countries like Malaysia, in a supply chain feeding the military-industrial complex – including, as Liz laid out with sobering figures, the weapons pipeline into Gaza.

Two decades of Japanese rescue

Shigeru Tanaka, Executive Director with the Pacific Asia Resource Center in Japan, walked us through a history that reframes Lynas as far more than an Australian company operating in Malaysia.

Lynas announced its plan in 2007 and nearly went bankrupt within a year, as the global financial crisis dried up capital and interest rates climbed. By 2009 the company had around $7 million in the bank against monthly overheads in the millions, Lynas was genuinely on the edge of collapse. A Chinese state-owned company offered to buy a 51.6% stake for $252 million plus a further $252 million loan, effectively $500 million in total. The Australian government blocked the deal outright, unwilling to see a Chinese-controlled monopoly on rare earths.

Japan stepped in instead, but not out of goodwill. In September 2010, a collision between a Chinese fishing vessel and Japanese coast guard boats near the tiny island of Senkaku, a contested territory escalated into a diplomatic crisis, and China responded by halting rare earth exports to Japan. With China holding a monopoly on these elements, the shock sent Japan into overdrive to secure an alternative. The state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC, since renamed the Japan Organization for Metal Security) and trading house Sojitz co-invested $250 million for 30% of LAMP’s output. This is half of what China had originally offered, but enough to keep Lynas alive.

Japan came back again in 2013–14, when the rare earth price bubble collapsed as a result of the WTO ruling which stopped China from placing a quota and restricts its rare earth export. WhenLynas’s stock and investment base started falling away, a ten-year extension on loan repayments and reduced interest rates were quickly granted. It came back a third time in 2018–19, blocking a hostile takeover that would actually have suited Japanese lenders financially, apparently preferring to keep Lynas under its thumb rather than cash out. And in 2023, as Lynas moved into heavy rare earth elements, JOGMEC and Sojitz added a further $200 million.

Three rescues, one pattern. As Shigeru put it, Japan isn’t only importing the materials — it is exporting the harm, and allowing Malaysia to absorb it, all under the rhetoric of “mineral security” and anti-China positioning.

From Kuantan to Gaza

Farwina Faroque, secretary general of BDS Malaysia, drew the line from the soils of Kuantan to the rubble of Gaza.

BDS was founded in July 2005 by 170 Palestinian civil society organisations, calling for an end to military occupation and colonisation, full equality for Palestinian citizens of Israel, and the right of return under UN Resolution 194.

Boycotts work. Intel halted construction of a US$25 billion plant in Israel in 2024 under sustained pressure, and Puma finally dropped its sponsorship of the Israeli Football Association. In Malaysia, direct action has blocked shipments too, including a container belonging to Israeli shipping giant ZIM at the Thai border in 2024, and just this past month, a Maersk container linked to weapons manufacturer Elbit Systems.

Lynas sits inside this picture as a critical part of the US war machine. The Pentagon’s funding – including the Texas contracts, the 2022 US$120 million agreement, and the US$96 million framework locked in this March – exists to guarantee rare earth oxides for weapons production.

Following Lynas’s mineral supply chain to the end, means following it toward Gaza: the Costs of War Project at Brown University’s Watson Institute puts US military aid to Israel and regional operations at US$22.7 billion in the year after October 2023 alone, including more than 50,000 tonnes of weapons shipped, and half a billion dollars annually for missile defence and F-35 jets,(aircraft that depend heavily on rare earth magnets). US officials have received more than 500 internal reports documenting these weapons being used to commit atrocities in Gaza, and taken no action to stop the flow. Journalists and human rights organisations, including Al Jazeera, have repeatedly found serial numbers and manufacturing stamps from US-made munitions in the rubble of schools, hospitals and designated safe zones in Gaza.

BDS Malaysia has built an unprecedented coalition around this, joining with Malaysian Protest for Palestine, Greenpeace Malaysia and Sahabat Alam Malaysia to bring petitions and street protest directly to parliament, to name and shame the politicians and corporate enablers who put foreign defence contracts ahead of human lives.

It has worked: the campaign forced a parliamentary select committee review, and rattled Lynas into issuing a sanitised statement claiming the US$96 million contract was merely “research and development” for permanent magnet production. Farwina wasn’t buying it. Everyone knows where those magnets end up: fighter jets and guided missiles. The contradiction cuts deep in a country whose government publicly champions Palestinian rights while its rare earths flow to the Pentagon.

The ground truth in Kuantan

Lee Tan has been part of the Stop Lynas campaign for more than 20 years, and her section of the webinar made the human and ecological cost impossible to look away from.

Rare earths are the “spices and vitamins” of modern industry: only tiny amounts are needed in almost every piece of electronics we touch, from smartphone touchscreens to laptops. Lynas has marketed itself in Malaysia as exactly that: a green raw-materials supplier. But separating these elements requires highly concentrated acids at temperatures around 600 degrees, and it generates enormous volumes of radioactive and hazardous wastes. This is precisely why almost all rare earth processing happens in the Global South, where regulation is weakest and resistance hardest, rather than in wealthy countries that can actually afford to manage the waste safely. Lynas, for its trouble, enjoyed twelve years of tax-free status in Malaysia as a “pioneer” in green technology.

The Kuantan site was once a pristine tropical peat and mangrove forest before Lynas cleared it in 2011. Waste retention ponds now sit where a peat forest used to be, and the company’s proposed “permanent” radioactive waste facility sits on a flood-prone peat swamp next to it. This is an engineering and hydrogeological absurdity, given that the thorium and uranium in Lynas’s waste stream have half-lives of roughly 14 billion and 4 billion years respectively. This waste is, in any meaningful sense, permanently hazardous.

Malaysia’s 2018 change of government briefly opened a path to end this. A review found that Lynas’s original operating licence required it to remove its radioactive waste from Malaysia unless a genuinely safe storage site could be found. A wet, low-lying peat swamp plainly isn’t one. Enforcing that clause could have shut Lynas down. Instead, incoming Prime Minister Mahathir Mohamad, a long-time ally of Japan, and the same figure behind an earlier radioactive contamination case involving Mitsubishi’s Asian Rare Earth plant, travelled to Japan and personally overturned his own environment minister’s ruling. Under Japanese pressure, the plant kept running.

The double standard doesn’t stop there.

In Western Australia, community objection and a state regulatory requirement (secured partly through AidWatch submissions backed by expert Professor Gavin Mudd and Lee Tan) forced Lynas to remove radioactive waste from its Kalgoorlie site within 24 months, taking it back to Mount Weld mine under stricter Australian radioactive waste management requirements.

Malaysia has no equivalent requirement, and its safety threshold is dramatically weaker: the International Atomic Energy Agency’s benchmark for thorium and uranium is 1 becquerel per gram, but Malaysia has adopted a threshold 100 times more permissive, meaning Lynas’s radioactive waste often isn’t even classified as radioactive under Malaysian law.

Photographs shown during the webinar documented waste stored under nothing more than garbage-bag-grade plastic, repeatedly flooded, while posters and glossy picture books were distributed trying to convince local residents that it was safe to keep swimming downstream at the estuary. Soil sampling by Professor Yoshihiko Wada, a Japanese researcher found dramatic increases in toxic elements and heavy metals in sediment samples nearby including a two fold increase in thorium at the estuary. Local fishermen in this traditionally significant fishing and shellfish area strongly object, Lee said, but face real political pressure to stay quiet.

What comes next

The Q&A drew the threads together. 

Malaysia’s parliamentary select committee inquiry which was reopened this year with new evidence about the Pentagon deal, largely thanks to work led by Greenpeace Malaysia, Sahabat Alam Malaysia and Malaysian Protest for Palestine, has yet to report back, a month after a special hearing. There’s real legal and political leverage here: Malaysia’s foreign policy is explicitly pro-Palestinian, and Prime Minister Anwar Ibrahim has publicly positioned himself as a defender of Palestinian rights while his country’s rare earths help supply the Pentagon.

Shigeru pointed to the Rarotonga and Bangkok Treaties, which establish nuclear-free zones across the Pacific and Southeast Asia and to which both Australia and Malaysia are signatories. These are  treaties that a properly classified nuclear waste dump would plainly violate, if only the waste were honestly called what it is.

He also flagged a structural obstacle that campaigners can’t ignore: Malaysia, Australia and Japan are all parties to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), whose investor-state dispute mechanisms (SDS) could let Lynas sue Malaysia for lost profits even if the government moved to shut the plant down. Stopping Lynas, in other words, means confronting these investment treaties too.

Speakers closed by underlining the value of exactly the kind of cross-border organising this webinar represents:

• • BDS Malaysia’s own networks, for instance, learned about Israeli navy participation in RIMPAC exercises and about vessels to target for blockade through contacts as far away as Hawaii. 
  • Lee is now working on a briefing paper to help connect the Stop Lynas campaign with peace movements, Palestinian rights groups and organisations like Friends of the Earth Australia. 
  • Liz closed the session by placing Lynas inside AidWatch’s wider work: joining the dots between Australia’s critical minerals policy, the money pouring into mining expansion across Aboriginal lands, Australia’s deepening role in Pacific militarisation through AUKUS and a growing web of regional defence agreements, and the way aid dollars increasingly underwrite infrastructure that feeds the same military-industrial complex. Liz also flagged an upcoming look at the minerals race behind AI and defence technology.

Rare earths aren’t rare, and this story isn’t over. If it feels like a lot to take in, that’s because it is, but as one of our speakers put it, you don’t need to be a scientist or a lawyer to do something.

Get informed, share what you’ve learned, and get active in whatever way is open to you, including:

– Follow website and social media updates from the various organisations that speakers are connected with (links in email above);

– Join up to AidWatch’s mailing list for updates or join as a member (see links below);

– Sign up to receive Yes to Life No to Mining’s newsletter that shares stories of how people around the world are resisting mining and forging alternative futures!

Watch this space for the recording, the position paper behind this series, and further webinars in our militarised extractivism series.