The global rare earth elements (REE) market is valued at USD3.9 to 13bil in 2024 and is expected to more than double to USD6 to 28bil by 2030, says Science, Technology and Innovation Minister Chang Lih Kang.
Speaking at the XThree Exploration Thorium and Rare Earth Seminar on Monday (Nov 3), Chang said the surge is fuelled by demand for electric vehicles, wind turbines and advanced electronics, highlighting REE’s importance to the clean energy transition.
He added that a Special Task Force on REE has also been formed to coordinate policies from exploration to processing and downstream development.
00:00The presence of participants from government, industry, academia, and the research community
00:10reflects our shared recognition of the importance of thorium and rare earth development,
00:18a film that will shape our sustainable growth and technological future.
00:22With the theme, Securing the Future, Science, Strategy, and Sustainability in REE and Thorium,
00:31this seminar carries an important message that our nation's progress must be built upon responsible exploration,
00:41scientific excellence, and strategic foresight.
00:44Across the world, demand for REE is accelerating.
00:48According to recent market analysis, the global REE market, estimated at US$3.9 to US$13 billion in 2024,
01:02is projected to more than double by 2030, reaching between US$6 and US$28 billion in value.
01:11This growth is driven by electric vehicles, wind turbine technologies, and advanced electronics,
01:21underscoring how essential these materials have become for the global clean energy transition.
01:29Today, China controls nearly 70% of processing capacity, creating vulnerabilities in the global supply chain.
01:38For Malaysia, this presents both a challenge and an opportunity to move beyond being a resource holder
01:48and become a trusted and sustainable regional partner in the critical materials ecosystem.
01:55This gathering is therefore not just a scientific meeting.
01:59It is a strategic dialogue to chart Malaysia's pathway in balancing economic potential, environmental stewardship, and national interest.
02:10Ladies and gentlemen, Malaysia is not starting from scratch.
02:15Our nation possesses significant REE and authorial resources,
02:19particularly within IAC iron absorption clay deposits, known for their low radioactivity and environmentally manageable profile.
02:31Preliminary studies under the previous Malaysia plans have indicated an inferred REE resource of approximately 16 million metric tons,
02:44with an estimated in-situ value exceeding R$800 billion.
02:52Deposits have been identified in several states, including Perak, Kedah, Tringganu, and Sarawak,
03:00each with distinct geological characteristics that could support both light and heavy REE development.
03:09Our true advantage, however, lies not only beneath the ground, but in our scientific capacity and strong institutional governance.
03:20Through agencies such as Nuclear Malaysia, JMG, Department of Minerals and Geoscience, and Atom Malaysia,
03:30we have built the technical know-how and regulatory foundation required to ensure that development of REE and thorium
03:39proceeds safely, ethically, and sustainably.
03:45Malaysia is among the few developing countries that already possess a comprehensive nuclear safety and radiation regulation
03:53under the Atomic Energy Licensing Act, Act 304, fully aligned with the international standards set by the IAEA, International Atomic Energy Agency.
04:07To coordinate policy and implementation, the government has established a special task force on rare earth elements,
04:14bringing together the Ministry of Natural Resources and Environmental Sustainability,
04:19the Ministry of Science, Technology, and Innovation, MOSTI,
04:23the Ministry of Investment, Trade, and Industry, MITI,
04:27and the Ministry of Finance, MOF, and other state governments.
04:31This whole government approach ensures that every stage from exploration to processing and downstream applications
04:41is developed with transparency, responsibility, and shared benefit for the people and the nation.
04:49Ladies and gentlemen, within this national framework, MOSTI serves as the science and technology engine
04:56that drive this emerging sector forward.
04:59Under the National Advanced Materials Ecology Roadmap, MOSTI is working closely with academia,
05:06research institutions, and industry players to accelerate technology localization,
05:12promote value-added processing, and strengthen research through industry linkages.
05:17Aligned with the 13th Malaysia Plan, RMK13, and the new Industrial Master Plan,
05:27the roadmap acts as a strategic enabler to connect local innovation with global value chains
05:33in advanced material and clean technology.
05:37Through targeted instruments such as Strategic Research Fund,
05:41the National Advanced Materials Council, and the Moonshot R&E Program,
05:45MOSTI supports high-impact research in green extraction technologies,
05:50rare-earth and neck recycling, and advanced separation processes.
05:55These efforts ensure Malaysia's critical minerals industry advances on the foundation of innovation,
06:03safety, and sustainability.
06:05In parallel, MOSTI is mainstreaming emerging technologies such as artificial intelligence,
06:11blockchain traceability, and digital monitoring systems to enhance transparency,
06:19optimize operations, and uphold the highest environmental, social, and governance standards.
06:26Through these efforts, MOSTI is building the scientific backbone of the nation's critical minerals ecosystem,
06:33one that not only meets today's industry's need,
06:36but positions Malaysia for the future of energy, mobility, and advanced manufacturing.
06:43Ladies and gentlemen, the global race for critical minerals is not merely about economic gain.
06:50It is about strategic resilience and technological sovereignty.
06:54For Malaysia, the journey ahead demands not only investment in minerals,
06:59but also investment in knowledge, innovation, and people.
07:03Let this seminar mark the beginning of a new era of collaboration between government, academia, and industry,
07:12one where science informs strategy and sustainability guides every decision we make.
07:18I urge all stakeholders to approach the development of forum and RET with a deep sense of responsibility and foresight.
07:28Let us ensure that Malaysia's progress in this field brings not only economic growth,
07:34but also environmental care and societal well-being in line with the ideas of Malaysia Madani.
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