Opposition leader Hamzah Zainudin has urged the government to prioritise the development of the rare earth elements (REE) industry, saying it has a lot of economic potential.
Speaking during a debate at the Dewan Rakyat on the 2025 budget, Hamzah criticised the government for overlooking the industry’s potential and said it should have provided financial support in the form of loans and grants to help local companies build expertise in REE exploration.
The Larut MP said the country has valuable elements like neodymium and praseodymium, which are critical for electric vehicle batteries and other high-tech products and can fetch up to US$60,000 per metric tonne.
Hamzah said the government should have banned the exports of REE as the country did not have the technology to process these elements locally, adding that failing to implement such a ban would only delay the growth of the REE industry and limit economic opportunities for the country
With global demand for REE expected to rise sharply by 2030, we need to act now. We have an immense potential in this industry, yet the government is not taking it seriously,
he said.
REE deposits have been found in Kedah, Kelantan, Terengganu, Pahang, and Perak. Three of these states are run by Perikatan Nasional (Kedah, Kelantan and Terengganu), and it’s clear that a strategic plan is needed to harness these resources for the benefit of the country.
In August, Prime Minister Anwar Ibrahim said Malaysia should fully leverage the vast potential of the local rare earths industry. Anwar said there should be collaborations with international experts aimed at developing the entire industry chain within the country.
Rare earth elements are valuable for use in high technology products such as smart phones, computer disk drives, digital cameras, computer monitors and catalytic converters in cars. China accounts for about 80% of the world’s supply of rare earths.
Mining and processing of rare earth elements have been controversial in Malaysia since the Australian firm Lynas set up the world’s largest single rare earths processing plant in Gebeng, Pahang, for export to Asia, Europe and the United States. - FMT
