Wedoany.com Report-Nov. 4, Malaysian Prime Minister Anwar Ibrahim announced that a 600 million ringgit ($142 million) super magnet manufacturing facility will be developed in the state of Pahang, a project expected to enhance Malaysia’s rare earth sector, state media reported. The initiative aims to strengthen the country’s role in the global supply chain for critical minerals and support the growth of advanced materials and clean technology industries.

Malaysia's Prime Minister Anwar Ibrahim speaks as he attends the ASEAN – New Zealand Commemorative Summit during the 47th Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur, Malaysia, on October 28, 2025.

In July, Australia’s Lynas Rare Earths (LYC.AX) and South Korea’s JS Link (127120.KQ) signed an agreement to build a 3,000-tonne neodymium magnet manufacturing facility near Lynas’ advanced materials plant in Malaysia’s Kuantan district. The new project represents one of the key milestones in Malaysia’s efforts to expand downstream rare earth processing and manufacturing capacity.

Speaking to state news agency Bernama on Saturday, Anwar said Malaysia’s trade minister will oversee the project due to its involvement in rare earth processing. “JS Link has already purchased the land and wants to begin operations, so this is no longer a memorandum of understanding,” he said. “The investment is in, the land is ready, so this is about accelerating the process.”

Anwar emphasized that the collaboration with international partners will help Malaysia advance in clean energy and high-tech industries, while promoting sustainable development. The project is expected to create local employment opportunities and support the government’s goal of developing a reliable, value-added rare earth supply chain.

Malaysia holds an estimated 16.1 million metric tons of rare earth deposits, according to government data, but currently lacks the necessary technology for large-scale mining and processing. To address this, the government is actively seeking foreign investment and technology partnerships to develop the country’s rare earth resources in an environmentally responsible manner.

Rare earth elements are essential for producing components used in electric vehicles, semiconductors, renewable energy systems, and various advanced technologies. The growing global demand for these materials has encouraged Malaysia to position itself as a regional processing and manufacturing hub.

In addition to the collaboration with Lynas and JS Link, Malaysia is engaged in ongoing discussions with China regarding rare earth processing cooperation. Last month, the government also signed an agreement with the United States to explore potential cooperation aimed at diversifying critical minerals supply chains.

The new magnet manufacturing facility in Pahang underscores Malaysia’s ambition to strengthen its participation in global clean technology and advanced manufacturing sectors. By fostering international partnerships and investing in downstream capabilities, the country aims to move up the value chain in the rare earth industry and secure a more sustainable economic future.