Will Malaysia Launch Value-Added Rare Earth Magneti Production within 3 Years to Serve the Global Electric Vehicle Industry?

Highlights

• Economy Minister Rafizi Ramli aims to process rare earth elements onshore within three years.
• The current technological dominance is held by Chinese state-owned enterprises.
• Malaysia seeks to develop a comprehensive rare earth elements value chain from upstream to downstream.
• The focus is on supporting electric vehicle manufacturing.
• The country is navigating complex geopolitical relationships.
• Malaysia aims to position itself as a global super magnet-producing nation.

Will Malaysia make the move to process rare earth elements (REE) onshore in domestic refining facilities? Rare Earth Exchanges suggests the country faces a somewhat precarious situation given inexorably intertwined relationships and financial commitments with China.

Rafizi Ramli (opens in a new tab), Economy Minister went on the record that within the next three years he expects Malaysia to process REE domestically. Acknowledging that to date the processing technology was dominated by Chinese state-owned enterprises, that discussions had to take place.

According to an entry in The Edge Malaysia (opens in a new tab), the Pandan MP said this was among the matters on the discussion agenda between Prime Minister Datuk Seri Anwar Ibrahim and his counterpart, Li Qiang.

What will happen with these discussions? Will China give its blessing to proceed? Rare Earth Exchanges suggests China has that much leverage with the southeastern Asian nation of approximately 34.31 million people.

But Ramli is talking to the press in a positive and assertive tone-noting that  they should succeed in ensuring that REE can be processed in the country.  "If it can be processed (in the country), it makes it easier for states to regulate and license their mining for REE development," he said in a press conference after attending the Ministry of Economy's 13th Malaysia Plan (RMK-13) Engagement Session (opens in a new tab) with the Kelantan Government at Kota Darulnaim Complex (opens in a new tab), here, on Sunday.

As Rare Earth Exchanges has reported in October, Malaysia exhibits ambitions to expand in the REE sector, but face intricate challenges. See “What Moves will Malaysia make given its bold ambitious rare earth plans? But also, a reality of a trade war between China and USA.”

On Nov 11, the Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad (opens in a new tab) touted the potential of Malaysia to advance its’ REE industry at the downstream level. On top of that, the Malaysian mind was going value-added and becoming a top worldwide super magnet-producing country. Their primary focus would be to support the electric vehicle manufacturing industry.

However, according to the recent media entry Rafizi said that the latest blueprint for REE, breaking down the entire value chain–upstream, midstream, and downstream, was tabled at the Sixth National Economic Action Council Meeting of 2024, chaired by Prime Minister Datuk Seri Anwar Ibrahim. Rare Earth Exchanges continues to monitor ongoing REE activity in Malaysia.