RM600 Million Super Magnet Plant Set to Power Malaysia’s EV Ambitions

Prime Minister Datuk Seri Anwar Ibrahim revealed South Korea’s JS Link and Australia’s Lynas Malaysia will jointly invest RM600 million to develop a super magnet manufacturing facility in Kuantan, Pahang.

The high-impact project is expected to process up to 3,000 tonnes of neodymium-iron-boron (NdFeB) permanent magnets annually, a critical component in the production of electric vehicles (EVs) and wind turbines. It is also seen as a major step toward positioning Malaysia as a global hub in the rare earth supply chain.

Anwar said both companies have completed preliminary preparations, with land already acquired and groundwork set to begin soon. “This is no longer just a memorandum of understanding. The investment is in, the land is ready, and we are now moving to accelerate the process,” he said.

The Prime Minister will meet with Pahang Chief Minister Datuk Seri Wan Rosdy Wan Ismail to discuss project coordination, while Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz will review and monitor its progress.

Anwar highlighted that the collaboration reflects growing investor confidence in Malaysia’s advanced materials and clean technology ecosystem, supporting the global transition toward a sustainable and resilient critical minerals supply chain, essential for EVs, renewable energy, and high-tech manufacturing.

Under the earlier agreement signed in July, Lynas will collaborate with JS Link to develop the facility near Lynas’ Advanced Materials Plant in Kuantan, expanding the company’s downstream operations into high-value rare earth magnet production. JS Link, meanwhile, is deepening its role in the global rare earth magnet industry as it works to build a more sustainable supply chain.

The RM600 million project underscores Malaysia’s strategic intent to move further downstream in the rare earth industry, capturing more value from processing and high-tech manufacturing linked to EV and clean energy sectors.

There are growing calls for the Pahang state government to ensure that at least 30% of employment opportunities at the new facility are reserved for local residents, ensuring that economic benefits directly reach the state’s workforce.

Source: Bernama