Malaysia to Build $142 Million Magnet Plant to Boost Rare Earth Industry
Project aims to strengthen nation’s position in critical minerals and clean tech supply chain
KUALA LUMPUR: Malaysia has announced plans to establish a 600 million ringgit ($142 million) super magnet manufacturing facility in the state of Pahang, a move expected to significantly boost the country’s rare earth sector, Prime Minister Anwar Ibrahim confirmed.
The initiative comes after Australia’s Lynas Rare Earths and South Korea’s JS Link signed an agreement in July to build a 3,000-tonne neodymium magnet plant near Lynas’ advanced materials facility in Kuantan. These magnets are vital components in electric vehicles, wind turbines, and other clean technologies.
Anwar said the country’s trade minister would closely oversee the project as it involves rare-earth processing a strategically sensitive industry. “JS Link has already bought the land and is ready to start operations. This is no longer a memorandum of understanding; the investment is real,” Anwar noted, emphasizing the government’s commitment to fast tracking the process.
He added that the collaboration would help Malaysia strengthen its foothold in advanced materials and clean energy technologies, while building a more resilient supply chain for critical minerals.
According to government data, Malaysia holds around 16.1 million metric tons of rare earth deposits, but lacks the technological capacity for large-scale extraction and processing. The government is therefore seeking foreign partnerships to bring in technology and expertise.
Rare earth elements are key ingredients in producing high-tech equipment, from semiconductors and smartphones to defense systems and electric vehicles.
Malaysia is also in ongoing discussions with China regarding rare-earth processing and, just last month, signed an agreement with the United States to diversify its critical minerals supply chain reflecting Kuala Lumpur’s growing ambition to become a major player in the global rare earth market.
