KUALA LUMPUR, Sept 15 — Malaysia has large stores of three non-radioactive rare earth elements (NR-REE) estimated at 16.1 million metric tonnes with a commercial value of some RM1 trillion that could give the Treasury a boost.

According to Universiti Malaysia Pahang Al-Sultan Abdullah associate professor Mohd Yusri Mohd Yunus, the NR-REE sources is estimated to reach a price of RM2 million per metric tonne with a total market value of RM809.6 billion, Utusan Malaysia reported today.

The three elements are widely found in Terengganu, Kelantan, Perak, Pahang and Kedah — Praseodymium (Pr) priced at RM577,212 per metric tonne, Neodymium (Nd) at RM593,336 per metric tonne and Dysprosium (Dy) worth RM1.96 million per metric tonne.

Mohd Yusri, who is also director of the Centre for Mineral Sustainability and Resource Recovery Technology said that it was estimated that in 2030, between 40,000 to 70,000 metric tonnes of the elements will be needed to produce electric vehicle (EV) technology batteries as well as high-performance magnets.

"The three NR-REE elements are the main elements needed in the production of high-power magnets to produce electric motors for hybrid/electric cars, wind turbines and household and industrial electrical appliances.

"Without the three rare earth elements, the transition to green energy would be impossible to implement,” he was quoted as saying.

He added that global demand for rare earth elements is increasing as demand for electric vehicles grows.

Mohd Yusri said a good example of the REE usage is in cell phones.

"Phone screens require europium (Eu) as red phosphor. The amount required is very small but, without the presence of Eu in the structure of the telephone/television screen, the color red cannot be produced.

"Today we can also watch movies without the help of external speakers or earphones/headphones. How is this technology evolving? The rare earth elements Nd and Pr are the answer to this technology. Magnets produced using this rare earth element are permanent magnets that are much stronger than common magnets (AlNiCo or ferrite magnets) today. With NdPr magnets being smaller in size and more powerful than AlNiCo or ferrite magnets, today's phones are versatile portable speakers,” he was quoted as saying.

He also said that the production of magnets from rare earth elements is one of the models of the downstream rare earth industry that can be classified into three main scopes, namely the upstream industry (mining), the intermediate industry (separation/purification) and the downstream industry (the use of rare earth metals ).

He said, the complete cycle of the industry is a branch of business that has such a large financial impact.

He said, mining and the separation process is only a small part of the industry but it is necessary to support the high value downstream industry which is completely dependent on quality production from the upstream and intermediate industries.

"To encourage downstream industries such as the production of magnets, LCD screens, lasers and the consumer electronics industry, upstream and intermediate industries need to be enriched in addition to positive policies to encourage new investment.

"The upstream industry, which is mining, needs to be strengthened with the application of sustainable and sustainable mining policies.

"Traditional mining needs to be improved to ensure that the desire to achieve green technology and energy is not contaminated by unsustainable and unsustainable branches of industry.”

Mohd Yusri said the rehabilitation process needs to be carried out in tandem with mining activities so that the environmental impact can be controlled at a minimal rate.

"In fact, the application of the concept of 'responsible mining' needs to be applied and audited from time to time so that this rare earth industry remains sustainable in the long term,” he was quoted as saying.

He also said that the Lynas rare earth processing plant in Gebeng, Pahang should be used as a resource for the country to explore the field.

The expertise learned by locals working at Lynas should be used as an asset for the development of the country's NR-REE processing plant,” he was quoted as saying.

He said that if commercialised, the radioactive-free rare earth elements that are abundant in Kuantan, Gambang and northern Pahang can be implemented for more than 100 years.

"The income that can be obtained during the period in Pahang is billions of dollars, it is quite lucrative and should be commercialised,” the academic was quoted as saying.

At least two states, Perak and Kedah, have been using their stores of REEs to lure foreign investors. But Prime Minister Datuk Seri Anwar Ibrahim recently said that the government will ban the export of NR-REE raw materials to avoid exploitation and loss while guaranteeing the maximum returns to the country.

Natural Resources, Environment and Climate Change minister Nik Nazmi Nik Ahmad said that the standard operating procedure for NR-REE mining is expected to come into force this year.

Rare earth mining activities are currently prohibited in permanent forest reserves, protected reserves and environmentally sensitive areas.

According to statista.com, in 2022 alone a total of about 300,000 metric tonnes of rare earth oxides was produced worldwide to meet global needs. This amount is an increase of almost 175 per cent compared to the decade before (2012-110,000 metric tonnes).

Adamas Intelligence reported separately that some 48,000 metric tonnes of Pr, Nd and Dy oxides are estimated to be needed in 2030 to meet the needs of 25 to 30 million electric motors for use in electric vehicles alone.

The US Department of Energy stated that the global demand for rare earth-based magnets in 2020 amounted to 119,200 metric tonnes which is expected to increase to 387,000 metric tonnes in 2030 and then 753,200 metric tonnes in 2050.