Plans for the processing facility with local partner Malaco Mining Group are taking shape.
French rare earth specialist Carester and Malaysia’s Malaco Mining Group have provided an update on their planned rare earth separation plant. In early 2026, the companies initially announced a pilot facility in the Malaysian state of Perak with a capacity of up to 3,000 metric tons of rare earth oxides per year. According to Reuters, this is now set to be followed by a significantly larger plant with an annual capacity of around 13,000 metric tons. The facility is to produce both light and heavy rare earths. No details on costs or the project timeline have been provided so far.
Some of the feedstock produced in Malaysia is to be shipped to France in the future. Carester’s subsidiary Caremag is currently building a rare earth refining and recycling facility there.
The partners also plan to deepen their cooperation in mining. According to Reuters, they are seeking permits to extract rare earths in several Malaysian states. In Malaysia, rare earths are often found in so-called ion-adsorption clays, which contain relatively high proportions of particularly critical heavy rare earths. Unlike conventional ore deposits, ion-adsorption clays do not require hard rock to be mined. Instead, solutions are used to leach the metals bound to clay minerals directly from the soil. Carester and Malaco Mining Group say they are developing methods designed to prevent groundwater contamination and landslides. This is particularly important because this type of mining involves removing vegetation that would normally help stabilize the soil.
In addition to its mining potential, Malaysia is also strengthening its position further downstream in the value chain. The country is already home to one of the largest rare earth processing facilities outside China, operated by Australian mining company Lynas. Lynas also recently announced plans to build a magnet plant together with South Korean company JS Link.
Beitragsbild: iStock/Edwin Tan
