Malaysia PM says $142 million magnet plant to boost rare earth sector, state media reports
KUALA LUMPUR (Reuters) -Malaysian Prime Minister Anwar Ibrahim said the development of a 600 million ringgit ($142 million) supermagnet production facility in Pahang state would strengthen the country’s rare earth sector, state media reported.
In July, Australia’s Lynas Rare Earths and South Korea’s JS Link signed a deal to develop a 3,000-tonne neodymium magnet manufacturing facility near Lynas’ advanced materials facility in Kuantan, Malaysia.
Anwar said Malaysia’s commerce minister would monitor the project as it involves rare earth processing, state news agency Bernama reported on Saturday.
“JS Link has already purchased the land and wants to start operations, so this is no longer a memorandum of understanding,” Anwar said. “The investment has started, the land is ready, so it’s about accelerating the process.”
Anwar said the collaboration will support Malaysia in its advanced materials and clean technology sectors while also supporting efforts to create a supply chain for critical minerals.
Malaysia has about 16.1 million metric tonnes of rare earth deposits, according to government estimates, but lacks the technology to extract and process them. The country is seeking foreign investment and technology sharing opportunities for the extraction and processing of raw rare earths.
Rare earths are crucial in high-tech manufacturing, including electric vehicles, semiconductors and missiles.
The Malaysian government is reportedly in talks with China on rare earth processing and signed an agreement with the United States last month seeking cooperation to diversify critical mineral supply chains.
($1 = 4.2240 ringgit)
(Reporting by Danial Azhar; Editing by Thomas Derpinghaus)
