PARTNERSHIP AS ONE OF THE ULTIMATE RESOURCES
The Makers normally have the capability to do in-house engineering design and local manufacturing activity, while their headquarters conduct business development activities to secure contract agreements from the clients. Meanwhile, The Strugglers tend to perform conventional engagement with customers and then conduct the assembling activities within their factory based on the customer requirements. Besides that, they import the magnet material from China and other countries. On the other hand, The Traders provide consultancy services by engaging with potential clients and then communicating with the manufacturer which is based in China. The manufacturer has the capability in terms of design and manufacturing capacity for magnet-based products. These different type of strategies and isolated approaches indicate there is a need to have a new partnership platform to amplify the local industry ecosystem comprising of our local players. In addition, this also shows the importance of having a local anchor company to champion the ecosystem supported by our local SMEs from different levels.
To put things in perspective, there is future demand for rare earth-based products to support the transition to clean energy; at the same time, the potential of a deficit in rare earth supply is also possible. As such, several factors will give significant push to drive the development of the industry ecosystem such as the creation of partnerships. At the global level, the Rare Earth Industry Association (REIA) represents the players along the entire value chain of the rare earth industry. They undertake the responsibility to promote stakeholder network, knowledge sharing of research and analysis, strategic cooperation, and technology solutions. Furthermore, government support for the partnership model is one of the critical elements to stimulate the growth of the emerging industry and to develop the supply chain. In a few developing countries such as US, EU, and UK, their governments play significant roles in the consortium of rare earth.
Chain of Custody for Downstream Industry based on Mass Balance Module
Supply Chain Connection at the downstream level
Supply from Local Midstream Industry (Central Processing Plant- CPP)
Supply of Metal and Alloy from Global Midstream Industry (Separation Plant)
Raw Materials
Raw Materials
Automotive Manufacturer
Downstream Rare Earth Industry (Manufacturing)
Rare Earth Oxide (REO)
Manufacturer of Wind Turbines
Magnet, Electric Motor, Battery, Catalyst etc
HRE & LRE
Processing & Consumable Materials (Industrial Gases, Utilities & Fuels etc)
OEM & SI
Manufacturer of Electronic & Electrical Appliances
Downstream Rare Erath Industry (Manufacturing)
Hazardous Waste & Toxic Materials (By Products)
Extendedd Producer Responsibility (EPR) Circular Economy
Super Magnet (Tier 3)
Rare Earth Oxide (REO)
Factory A
Scheduled Waste
Magnet & Electric Motor
Option A: using the magnet produced from Factory A
Local Off Takers (OEM & SI in EVs, Turbines, Electronics)
Automotive Manufacturer
Option B: new supply of REO to the Factory B
Rare Earth Oxide (REO)
Factory B
Tier 1 Product
Electric Motor (Tier 2)
Manufacturer of Wind Turbines
Global Off Takers (OEM & SI in EVs, Turbines, Electronics)
Product Export
Manufacturer of Electronic & Electrical appliances
63
Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry
Made with FlippingBook flipbook maker