The Asian country has the largest processing plant for rare earths.
Not only processing capacities but also deposits of rare earths and other critical minerals: Malaysia could play an important role in the U.S. raw materials strategy in the future. Edgard Kagan, designated U.S. ambassador to the Asian country, at least, is convinced of this, as Reuters reports. Kagan advocates that both the private sector and the government drive cooperation in this area.
The challenges that U.S. companies could face in Malaysia are illustrated by the example of Lynas: The Australian mining group operates what it claims is the world’s largest rare earth processing plant in the country. However, regular operation is only guaranteed until the end of the year because the Malaysian government has effectively banned parts of the processing process, as radioactive waste is also produced in the process. These steps will then have to take place outside the country in the future. Lynas has appealed the decision, arguing that the new requirements are not in line with the rules that applied when the company decided to invest in Malaysia.