MALAYSIA'S RM600 MLN SUPER MAGNET FACILITY TO UNLOCK NEW POTENTIAL IN RARE EARTH DOWNSTREAM INDUSTRY

From Nor Baizura Basri

GYEONGJU (South Korea), Nov 1 (Bernama) --  A RM600 million super magnet manufacturing facility to be developed by JS Link and Lynas Malaysia in Pahang is seen as having the potential to strengthen Malaysia’s position and create new opportunities in the rare earth downstream industry.

Prime Minister Datuk Seri Anwar Ibrahim said that both companies have already made preliminary preparations, and he will meet the Pahang Chief Minister Datuk Seri Wan Rosdy Wan Ismail this Sunday to discuss the project.

“On Monday, Tengku Datuk Seri Zafrul Aziz (Minister of Investment, Trade and Industry) will review and monitor the progress because this is an important investment involving rare earth processing at the highest level, known as super magnets.

“JS Link has already purchased the land and wants to begin operations, so this is no longer a memorandum of understanding. The investment is in, the land is ready, so this is about accelerating the process,” Anwar told reporters before concluding his three-day working visit to the country.

Anwar is in the country to attend the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting (AELM).

Earlier, he met with JS Link CEO Lee Jun Young and Lynas Malaysia managing director Datuk Seri Mashal Ahmad. Also present was Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

In a post on X, the Prime Minister said this high-impact collaboration will strengthen Malaysia’s position in the advanced materials and clean technology ecosystem, while supporting global efforts to build a safer, sustainable, and resilient critical minerals supply chain - a key component for electric vehicles (EVs), renewable energy, and high-tech industries. He added that the partnership also reflects investor confidence in Malaysia as a stable, competitive, and innovation-driven investment destination.

In July this year, Lynas Rare Earths Ltd announced it had signed an initial agreement with JS Link to develop a rare earth permanent magnet production facility in Malaysia.

Under the memorandum of understanding, Lynas will collaborate with JS Link to develop a facility capable of producing up to 3,000 tons of neodymium-iron-boron sintered permanent magnets near Lynas’ advanced materials plant in Kuantan.

The South Korean firm is expanding its operations into the rare earth permanent magnet industry, aiming to build a sustainable global supply chain and secure its position within the rare earth magnet supply network.

Regarding his meeting with Namhae Chemical Corporation, the Prime Minister said the company has agreed to increase imports of Malaysian raw materials worth RM500 million, specifically phosphate rock, potassium chloride, and green ammonia, for its fertiliser production.

Namhae Chemical, a subsidiary of the National Agricultural Cooperative Federation (NONGHYUP) - the 10th largest conglomerate in South Korea - is the country’s largest producer of chemical fertilisers and industrial chemicals, holding 42 per cent of the domestic market and exporting to 20 countries.

Also present at the meeting was Namhae Chemical executive vice president Kang Nam-Kyung.

-- BERNAMA