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Malaysia's Prime Minister announced that a MYR 600 million (USD 142 million) facility will soon be built in Pahang to manufacture super-magnets, marking a shift from planning to execution for the foreign-backed project. The facility, involving Australia's Lynas Rare Earths and South Korea's JS Link, follows an earlier July agreement to produce up to 3,000 tonnes of neodymium-iron-boron magnets near Lynas' Kuantan plant. Malaysia holds an estimated 16.1 million metric tons of rare-earth deposits but lacks full processing capability, and is seeking foreign partners and technology sharing.
Malaysia's Prime Minister, Anwar Ibrahim, has confirmed that a new super-magnet manufacturing plant valued at MYR 600 million (USD 142 million) will be developed in the eastern state of Pahang, signalling a key move in the country's ambition to deepen its rare-earth downstream industry. State media reported that this facility is no longer at the memorandum-of-understanding stage, with land already purchased and businesses ready to begin operations. Advertisement
The plant comes through a collaboration between Australia's Lynas Rare Earths and South Korea's JS Link, which in July had signed an agreement to develop a manufacturing site with capacity up to 3,000 tonnes of neodymium-iron-boron permanent magnets annually.
Mr Ibrahim said Malaysia's Trade and Industry Minister will monitor the project given that it involves rare-earth processing. He pointed out that the land is ready and the investment is confirmed, meaning the focus now is accelerating implementation.
He emphasised that the collaboration will help Malaysia establish a stronger position in advanced materials and clean-technology sectors, while contributing to the building of a more resilient and diversified supply chain for critical minerals.
Malaysia is estimated to hold around 16.1 million metric tons of rare-earth deposits, but its technology and industrial capacity to mine and fully process these materials remain limited. The government has been actively seeking foreign investment and technology sharing to bridge that gap.
In earlier developments, Australia's Lynas achieved a milestone by producing dysprosium oxide in Malaysia, marking one of the few commercial heavy-rare-earth separations outside China.
What this new plant signals is Malaysia's move from being a raw-material supplier toward a more integrated position in the value chain of rare-earth processing and magnet manufacture. The project aligns with global shifts in mineral supply chains where demand for magnets (used in electric vehicles, wind turbines, semiconductors and defence systems) is rising and dominance by China is being challenged.
Source Reuters
5th Jun, 2025
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