Pol said other countries in Asean have been able to attract billions of foreign direct investments (FDIs) in downstream manufacturing of high-performance magnets and other related technologies which need rare earth minerals.
“This will also create thousands of new jobs. For example, developing a Malaysian super magnet factory to serve the automotive industry could produce 5,000 tonnes of neodymium magnets (a rare earth magnet) and create up to 5,000 jobs as well as investments of RM1 billion,” he said at a press conference here today.
Pol said Malaysia had the opportunity to be a world leader in an industry that supported technologies used everyday, such as smartphones, and future-facing industries like electric vehicles and wind turbines.
He said a strong and environmentally responsible rare earth industry would offer circular economy opportunities as by-products from rare earth processing, which will contribute to the manufacturing and energy supply chains.
Lynas Malaysia vice-president Mashal Ahmad said downstream activities such as cracking and leaching, solvent extraction and product finishing were required for Malaysia to take full advantage of its rare earth deposits.
“Malaysia is well-positioned with downstream rare earth processing expertise at Lynas’ factory in Kuantan, Pahang.
“However, a national rare earth policy or framework will be an ideal next step to promote future developments in Malaysia’s downstream industry,” he said.
Mashal said Malaysia had a strategic advantage as it was home to the only significant non-Chinese supplier of rare earth products, adding that the government should utilise this competitive advantage to further develop rare earth and advanced manufacturing industries.
“Rare earth processing at Lynas Malaysia has created an estimated 4,600 jobs in the country’s economy (including almost 900 direct jobs) and contributed RM4.8 billion to Malaysia’s gross domestic product since 2013.
“Further development of the industry will create new highly skilled jobs in Malaysia and provide a local source of supply to Malaysian manufacturing industries, including motor vehicles and electrical appliances,” he said.