KUALA LUMPUR: Malaysia has a significant opportunity to develop its downstream rare earth elements (REE) industry, particularly in producing super magnets to support the burgeoning electric vehicle (EV) manufacturing sector, as explained in the Dewan Rakyat today.

According to BERNAMA News Agency, Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad revealed that the latest REE roadmap, which encompasses the entire supply chain including upstream, midstream, and downstream stages, was recently presented at the sixth National Economic Action Council meeting of 2024, chaired by Prime Minister Datuk Seri Anwar Ibrahim. The roadmap was developed following a comprehensive study by the Academy of Sciences Malaysia, focusing on a holistic business model for the REE industry.

Nik Nazmi highlighted Malaysia’s potential in the downstream sector, emphasizing the need for a local intermediate industry to process REE raw materials, specifically rare earth carbonates produced by local mines. Th
is development is crucial for Malaysia to become a key player in supporting EV manufacturing.

Furthermore, Nik Nazmi mentioned that Lynas Malaysia Sdn Bhd, a prominent rare earth mining company, is ready to process Malaysia’s REE. However, the minister stressed that Lynas must adhere to stringent environmental, health, and safety standards. The company has shown its commitment to establishing another processing line in Malaysia, contingent on obtaining an extended operating license-a matter currently under evaluation.

Presently, Lynas processes raw materials sourced from Australia and exports them to countries such as Vietnam and Japan, but plans to process local REE may bolster Malaysia’s position in the global REE market.