Rare Earths: Malaysia Plans Cooperation With South Korean Magnet Manufacturer

by | 29. Apr 2024 - 11:11 | General

State of Perak possibly about to collaborate with the Star Group.

Malaysia wants to significantly expand its position as a producer of rare earths and develop its own value chains for the critical raw materials. The government of the Malaysian state of Perak has now announced a possible collaboration with the Star Group, a South Korean manufacturer of permanent magnets made from rare earths, important components for electric motors and wind turbines. Details will be discussed during a visit by the company to Perak in May, The Edge Malaysia quotes the state head of government Datuk Seri Saarani Mohamad. He had previously led a delegation to South Korea with the aim of attracting investment in the minerals industry, electric vehicles, waste management, and green energy.

Last year, Malaysia reported the discovery of around 16 million tons of rare earths and soon after announced a ban on the export of raw materials in unprocessed form to “guarantee maximum revenue for the country.” There is already a refinery for rare earths in the Southeast Asian country, operated by the Australian mining company Lynas, which uses raw materials from Australia. In Malaysia itself, the raw materials have hardly been mined to date. The potential cooperation with the Star Group is not the first to promote the establishment of its own value chains; Malaysia relies primarily on the expertise of raw materials giant China, which holds a quasi-monopoly on rare earths.

Photo: iStock/ buranatrakul

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