Currently limited mining output, but high potential: Malaysia seeks to capitalize on its resource wealth.
In March 2024, Malaysia’s government announced plans to upgrade the country’s rare earths sector to capture more value from its natural resources. As part of this strategy, it highlighted potential cooperation with the industry giant China. Shortly thereafter, initial talks between representatives of the two nations took place, with Malaysia hoping for Chinese investment in a domestic rare earth refinery.
One challenge: in late 2023, Beijing imposed an export ban on the technologies needed to process and refine rare earth elements. According to Reuters sources, China might consider an exception in exchange for access to Malaysia’s reserves. Despite having its own deposits, Malaysia’s rare earth mining remains limited. More importantly, the country hosts one of the world’s most significant rare earth refineries outside China. Operated by the Australian company Lynas, the facility currently processes raw materials imported from Australia but also plans to source rare earths directly from Malaysia, cutting transport routes significantly.
Industry insiders interviewed by Reuters suggest that Beijing may also be seeking to secure these resources before growing competition from Australia gains further ground.
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