Malaysia PM says $142 million magnet plant to boost rare earth sector, state media reports

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KUALA LUMPUR (Reuters) -Malaysian Prime Minister Anwar Ibrahim said the development of a 600 million ringgit ($142 million) super magnet manufacturing facility in the state of Pahang will strengthen the nation’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 plant in Malaysia’s Kuantan district. 

Anwar said Malaysia’s trade 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 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.”

The collaboration will bolster Malaysia in the advanced materials and clean technology sectors, Anwar said, while supporting efforts to build a supply chain for critical minerals. 

Malaysia has around 16.1 million metric tons of rare earth deposits, according to government estimates, but it lacks the technology to mine and process them. The country is seeking foreign investment and technology sharing opportunities to mine and process raw rare earths. 

Rare earths are essential in high-tech manufacturing, including electric vehicles, semiconductors and missiles.

The Malaysian government is reportedly in talks with China on rare-earth processing and last month signed a deal with the U.S. seeking cooperation to diversify its critical minerals supply chains.     

($1 = 4.2240 ringgit)

(Reporting by Danial Azhar; Editing by Thomas Derpinghaus)