Anwar backs RM600 million super magnet plant to power Malaysia’s rare earth ambitions

KUALA LUMPUR: Malaysia is taking a significant step to boost its rare earth industry with the announcement of a 600 million ringgit (S$186 million) super magnet manufacturing facility in Pahang, Prime Minister Anwar Ibrahim said, according to state media.

The project follows a deal signed in July between Australia’s Lynas Rare Earths and South Korea’s JS Link to set up a 3,000-tonne neodymium magnet production plant near Lynas’ advanced materials facility in Kuantan.

“JS Link has already purchased the land and is ready to begin operations, so this is no longer just a memorandum of understanding,” Anwar said. “The investment is confirmed, the land is ready—now it’s about speeding up the process.” He also noted that Malaysia’s trade minister will closely oversee the project due to its strategic importance in rare-earth processing.

This collaboration is projected to place Malaysia as a major player in cutting-edge materials and clean technology, while solidifying the country’s supply chain for vital minerals.

While Malaysia is estimated to hold 16.1 million metric tonnes of rare earth deposits, it currently doesn’t have adequate technology to excavate and internally process them. To overcome this deficiency, the Malaysian government is vigorously in the hunt for overseas assets and technology-related collaborations.

With this groundbreaking endeavour, Malaysia is taking a huge step towards becoming a regional centre for rare earth-related methods and advanced material production.