KUALA LUMPUR: Malaysian Prime Minister Anwar Ibrahim announced that the construction of a 600 million ringgit ($142 million) super magnet manufacturing plant in Pahang will boost the country’s rare earth industry, according to state media.
In July, Australia’s Lynas Rare Earths and South Korea’s JS Link signed an agreement to establish a 3,000-tonne neodymium magnet production facility near Lynas’ advanced materials plant in Kuantan, Malaysia.
Anwar added that the nation’s trade minister will oversee the project, as it involves rare earth processing, state news agency Bernama reported.
“JS Link has already purchased the land and wants to begin operations, so this is no longer a memorandum of understanding,” Anwar said. “The investment is in, the land is ready, so this is about accelerating the process.”
Prime Minister Anwar Ibrahim said the partnership will strengthen Malaysia’s position in the advanced materials and clean technology sectors while helping to develop a supply chain for critical minerals.
Government estimates indicate that Malaysia holds about 16.1 million metric tons of rare earth deposits, but the nation currently lacks the technology to mine and process them.
To address this, Malaysia is pursuing foreign investment and technology transfer opportunities to support rare earth extraction and processing.
Rare earth elements are vital components in high-tech industries such as electric vehicles, semiconductors, and defence systems.
The Malaysian government is reportedly in discussions with China regarding rare-earth processing and, last month, signed an agreement with the United States to enhance cooperation and diversify its critical minerals supply chains.
