ASIATODAY.ID, KUALA LUMPUR — Malaysia is set to construct a rare earth super magnet manufacturing facility worth 600 million ringgit (approximately USD 145 million) in a strategic move to strengthen its domestic rare earth industry and secure its position in the global supply chain for critical minerals.
The project stems from a partnership between Lynas Rare Earths of Australia and JS Link of South Korea. The new plant, designed to produce 3,000 tons of neodymium magnets annually, will be located near Lynas’ advanced materials facility in Kuantan, Malaysia.
According to Prime Minister Anwar Ibrahim, the initiative has entered the execution phase, marking the transition from planning to implementation.
“JS Link has already purchased land and is ready to start operations. The investment has been made, the site is ready — now it’s about speeding up the process,” Anwar told on his official statement on Tuesday, November 4, 2025.
Anwar emphasized that the collaboration would enhance Malaysia’s capabilities in clean technology and advanced materials, while also contributing to the development of a resilient global supply chain for critical minerals.
Malaysia’s Ministry of Trade will closely monitor the project’s progress, as the rare earth sector is often regarded as a “world treasure” due to its strategic importance in high-tech manufacturing. Rare earth elements are essential for producing electric vehicles, semiconductors, and advanced military equipment.
Malaysia holds an estimated 1.61 million metric tons of rare earth deposits, but the country has long faced technological and industrial capacity challenges in mining and processing the material. To address this, Malaysia is actively seeking foreign investment and technology-sharing partnerships.
Beyond the deal with Australia and South Korea, Malaysia is reportedly in talks with China regarding rare earth processing. The country has also signed an agreement with the United States to diversify critical mineral supply chains.
This initiative underscores Malaysia’s ambition to become a key global player in the rare earth and clean technology industries, vital for the world’s transition toward sustainable and renewable energy. (AT Network)
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