Malaysia poised to lead in rare earth industry
Tan Sri Dr Ahmad Tajuddin Ali and Datuk Ir Rashid Musa emphasised the importance of leveraging existing REE infrastructure for future REE facilities. - Astro AWANI
KUALA LUMPUR: Malaysia is emerging as a strategic global player in the rare earth elements (REE) industry, with urgent calling for a coordinated national approach to unlock its full potential.
AI Brief
- Malaysia holds 16.1 million metric tonnes of rare earth elements, valued at RM1 trillion, offering major economic potential.
- Experts urge investment in REE processing and manufacturing to support green tech and reduce reliance on foreign supply chains.
- Public trust and environmental safety are key, with calls for a national body to coordinate efforts and replicate PETRONAS's success.
“Rare earth elements are the backbone of modern technology from electric vehicles and wind turbines to defense systems and medical diagnostics.
“With geopolitical tensions and supply chain monopolies, Malaysia must accelerate its domestic capabilities to reduce external dependencies and assert technological sovereignty," said Tan Sri Dr Ahmad Tajuddin.
Malaysia holds an estimated 16.1 million metric tonnes of REE, valued at RM1 trillion, placing it among the top global reserves.
According to Datuk Ir Rashid Musa, this presents a golden opportunity for Malaysia to become a hub for green technologies and advanced manufacturing.
“With the right investments, Malaysia could produce 35,000 tonnes of super magnets and five million energy-efficient motors annually by 2030.
“This could generate RM13.59 billion in revenue, create new jobs, and reduce the trade deficit," he said.
Both emphasised the importance of leveraging existing infrastructure, such as the Lynas Advanced Materials Plant (LAMP) in Gebeng, Pahang, and promoting regions like Kulim-Gurun for future REE facilities.
However, public perception remains a challenge.
“We must adopt best practices in environmental management and engage communities transparently.
“Malaysia has the expertise especially from its oil and gas sector to repurpose technologies for safe and sustainable REE processing," Tan Sri added.
They also called for the establishment of a National Aggregator to coordinate efforts across federal and state levels, benchmark global best practices, and drive the Moonshot Programme for REE development.
“Malaysia’s REE journey is akin to the early days of PETRONAS.
"With strategic planning, we can replicate that success and become a global leader in rare earths."
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